DoD Awards Northrop Grumman $45.7M for KC-10 Contractor Logistics Support
Contract Overview
Contract Amount: $45,773,413 ($45.8M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-04-29
End Date: 2018-07-31
Contract Duration: 823 days
Daily Burn Rate: $55.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: Defense
Official Description: IGF::CL,CT::IGF KC-10 CONTRACTOR LOGISTICS SUPPORT (CLS)
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $45.8 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: IGF::CL,CT::IGF KC-10 CONTRACTOR LOGISTICS SUPPORT (CLS) Key points: 1. Contract awarded to Northrop Grumman Technical Services, Inc. 2. Supports KC-10 aircraft operations through logistics services. 3. Contract duration of 823 days. 4. No small business participation noted.
Value Assessment
Rating: fair
The contract type is Cost No Fee, which offers less price certainty for the government. The award amount is substantial, but without detailed cost breakdowns or benchmarks, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms and how they were evaluated against other bids are not detailed here.
Taxpayer Impact: Taxpayer funds are utilized for the sustainment of critical military aviation assets, ensuring operational readiness.
Public Impact
Ensures continued operational readiness of the KC-10 fleet. Supports air transportation capabilities for the Department of Defense. Provides essential contractor logistics support, reducing the burden on military personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee contract type
- No small business participation
Positive Signals
- Full and open competition
- Supports critical military asset
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aviation support services. Spending in this area is crucial for maintaining military readiness and operational capabilities.
Small Business Impact
The data indicates that this contract did not involve small business participation. This could be due to the nature of the services required or a lack of competitive bids from small businesses for this specific requirement.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency, which is responsible for overseeing contract performance and ensuring compliance with terms and conditions. Further oversight details are not provided.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost No Fee contract type may lead to higher costs for the government.
- Lack of small business participation limits opportunities for smaller enterprises.
- Contract duration of over two years requires sustained oversight.
- Dependence on a single contractor for critical logistics support.
Tags
other-support-activities-for-air-transpo, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.8 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. IGF::CL,CT::IGF KC-10 CONTRACTOR LOGISTICS SUPPORT (CLS)
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN TECHNICAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $45.8 million.
What is the period of performance?
Start: 2016-04-29. End: 2018-07-31.
What was the basis for the Cost No Fee contract type, and how did it impact price negotiation?
The Cost No Fee (CNF) contract type is typically used when the contractor's costs are difficult to estimate or control. While it allows for flexibility, it places the cost risk primarily on the government. The impact on price negotiation would depend on the government's ability to scrutinize and validate the contractor's incurred costs post-award, potentially leading to less favorable pricing than a fixed-price contract.
What are the specific risks associated with Northrop Grumman's performance on this KC-10 CLS contract?
Risks include potential cost overruns due to the CNF structure, performance deficiencies impacting KC-10 availability, and supply chain disruptions affecting spare parts or maintenance. The lack of small business involvement might also indicate a concentrated risk if Northrop Grumman faces significant operational challenges.
How effectively does this contract contribute to the overall mission readiness of the KC-10 fleet?
The contract is designed to ensure the operational readiness of the KC-10 fleet through essential logistics support. Its effectiveness hinges on Northrop Grumman's ability to provide timely and quality maintenance, repair, and supply chain management, directly impacting the aircraft's availability for military operations.
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
Offers Received: 2
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2411 DULLES CORNER PARK STE 800, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $45,773,413
Exercised Options: $45,773,413
Current Obligation: $45,773,413
Subaward Activity
Number of Subawards: 122
Total Subaward Amount: $475,746,977
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA810610D0001
IDV Type: IDC
Timeline
Start Date: 2016-04-29
Current End Date: 2018-07-31
Potential End Date: 2018-07-31 00:00:00
Last Modified: 2018-09-06
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