DoD Awards Northrop Grumman $48.2M for C-20 Base Support, Lacking Competition
Contract Overview
Contract Amount: $48,225,839 ($48.2M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-03-29
End Date: 2014-03-31
Contract Duration: 367 days
Daily Burn Rate: $131.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CL,CT::IGF CONTRACT TO PROVIDE C-20 MAIN OPERATING BASE, CONTRACTOR OWNED&MAINTAINED BASE SUPPLY&DEPOT SUPPORT.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $48.2 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: IGF::CL,CT::IGF CONTRACT TO PROVIDE C-20 MAIN OPERATING BASE, CONTRACTOR OWNED&MAINTAINED BASE SUPPLY&DEPOT SUPPORT. Key points: 1. Contract awarded to Northrop Grumman for C-20 operating base support. 2. Significant value of $48.2M for contractor-owned and maintained base supply and depot support. 3. Contract was not competed, raising questions about price discovery and value. 4. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is broad; specific benchmarks are difficult without more detail.
Value Assessment
Rating: questionable
The contract's fixed-price nature suggests some cost control, but the lack of competition makes it difficult to assess if the $48.2M represents a fair market price compared to similar support contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The absence of competition likely resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The reliance on a single contractor for critical base support raises potential risks if performance issues arise. Transparency in pricing and performance metrics is crucial for public trust in defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpayment
Positive Signals
- Firm fixed price contract type
- Clear scope of work (base support)
Sector Analysis
This contract falls under the broad 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Benchmarking is challenging without specific details on the services provided, but large support contracts often represent significant portions of defense budgets.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and adequate performance. The Department of the Air Force's oversight mechanisms will be key to mitigating risks associated with this award.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency
- Contractor dependency for critical support
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.2 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. IGF::CL,CT::IGF CONTRACT TO PROVIDE C-20 MAIN OPERATING BASE, CONTRACTOR OWNED&MAINTAINED BASE SUPPLY&DEPOT SUPPORT.
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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $48.2 million.
What is the period of performance?
Start: 2013-03-29. End: 2014-03-31.
What specific services are included in the 'base supply & depot support' to justify the $48.2M cost?
The contract details 'contractor owned & maintained base supply & depot support' for the C-20 aircraft. This likely encompasses inventory management, warehousing, maintenance of support equipment, and potentially logistics services critical for aircraft operational readiness. A detailed breakdown of personnel, equipment, and overhead costs would be needed for a precise justification.
What were the justifications for awarding this contract sole-source instead of seeking competitive bids?
Sole-source awards typically occur when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. The justification for this specific contract's sole-source nature would need to be documented by the Department of the Air Force, potentially citing unique capabilities or proprietary technology held by Northrop Grumman.
How does the performance of Northrop Grumman on this contract compare to industry benchmarks for similar support services?
Without specific performance metrics and a clear understanding of the services rendered, a direct comparison to industry benchmarks is difficult. However, given the lack of competition, ongoing monitoring of key performance indicators (KPIs) related to availability, response times, and cost-effectiveness is essential to ensure value for taxpayer money.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $85,877,529
Exercised Options: $51,120,080
Current Obligation: $48,225,839
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2013-03-29
Current End Date: 2014-03-31
Potential End Date: 2014-03-31 00:00:00
Last Modified: 2015-12-03
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