DoD's $33.2M Northrop Grumman Contract for Airfield Platform Maintenance Faces Scrutiny
Contract Overview
Contract Amount: $33,187,406 ($33.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-05-01
End Date: 2026-01-23
Contract Duration: 267 days
Daily Burn Rate: $124.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PLATFORM MAINTENANCE AT FOL LOCATIONS, MOB LOCATION AND PILOT TRAINING
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $33.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: PLATFORM MAINTENANCE AT FOL LOCATIONS, MOB LOCATION AND PILOT TRAINING Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for $33.2M. 2. Focuses on platform maintenance, mobile location support, and pilot training. 3. Competition method was 'Full and Open', suggesting potential for price discovery. 4. Sector is 'Other Support Activities for Air Transportation', with a benchmark of $124K. 5. Contract duration is 267 days.
Value Assessment
Rating: fair
The contract's total value of $33.2M is significantly higher than the provided benchmark of $124K for similar activities. This large discrepancy warrants further investigation into the scope and specific services included to justify the cost.
Cost Per Unit: $124,297
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition', which is a positive indicator for price discovery. However, the substantial difference between the contract value and the benchmark suggests that the competitive process may not have yielded the most cost-effective outcome.
Taxpayer Impact: The significant cost relative to the benchmark raises concerns about potential overspending, impacting taxpayer value.
Public Impact
Ensures operational readiness of critical air platforms. Supports pilot training, vital for national security. Potential for cost savings if pricing is optimized against benchmarks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value compared to benchmark.
- Potential for cost overruns if not managed effectively.
- Limited duration may indicate a specific, short-term need.
Positive Signals
- Full and open competition utilized.
- Supports critical Air Force operations.
- Clear contract end date.
Sector Analysis
This contract falls under 'Other Support Activities for Air Transportation', a broad category. The benchmark of $124K suggests typical contract values in this area are substantially lower than the $33.2M awarded here, indicating this may be a unique or large-scale requirement.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine if small businesses had an opportunity to participate.
Oversight & Accountability
The contract's significant value necessitates robust oversight to ensure performance standards are met and costs remain justified. Regular reviews of expenditures against the benchmark and scope are crucial.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost significantly exceeds sector benchmark.
- Lack of detail on specific services justifying high cost.
- Potential for inefficient resource allocation.
- No clear indication of small business participation.
Tags
other-support-activities-for-air-transpo, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. PLATFORM MAINTENANCE AT FOL LOCATIONS, MOB LOCATION AND PILOT TRAINING
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $33.2 million.
What is the period of performance?
Start: 2025-05-01. End: 2026-01-23.
What specific services are included in this $33.2M contract to justify its cost significantly above the $124K benchmark?
The contract covers platform maintenance at fixed locations, mobile location support, and pilot training. The high cost likely reflects the complexity, scale, and specialized nature of these services, potentially involving advanced technology, extensive personnel, and geographically dispersed operations across multiple locations, which are not fully detailed in the provided summary.
Given the 'Full and Open Competition' award, why is the contract value so much higher than the sector benchmark?
While 'Full and Open Competition' aims for price discovery, the benchmark may represent smaller, less comprehensive service contracts. This $33.2M award could encompass a broader scope, longer duration, or more specialized requirements than typical contracts within the 'Other Support Activities for Air Transportation' category, leading to a higher overall value despite competitive bidding.
What is the potential risk to taxpayer value with this contract, and how can it be mitigated?
The primary risk is overpayment due to the significant cost variance from the benchmark. Mitigation strategies include rigorous performance monitoring, detailed cost audits, ensuring strict adherence to the defined scope of work, and potentially negotiating future contracts with clearer cost breakdowns and performance metrics based on lessons learned.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA489025R0012
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7575 COLSHIRE DR TOWER 1, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $141,336,113
Exercised Options: $96,196,881
Current Obligation: $33,187,406
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-05-01
Current End Date: 2026-01-23
Potential End Date: 2028-01-23 00:00:00
Last Modified: 2026-01-13
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