DoD Awards Northrop Grumman $189M for Iraq Contractor Logistics Support, Raising Oversight Concerns
Contract Overview
Contract Amount: $189,021,624 ($189.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2016-01-01
End Date: 2021-06-30
Contract Duration: 2,007 days
Daily Burn Rate: $94.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF IRAQ CONTRACTOR LOGISTICS SUPPORT FOR CESSNA C208/C172 FLEET OF AIRCRAFTS
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76106
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $189.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF IRAQ CONTRACTOR LOGISTICS SUPPORT FOR CESSNA C208/C172 FLEET OF AIRCRAFTS Key points: 1. Significant contract value of $189M for aircraft logistics support. 2. Limited competition noted, with contract awarded under 'NOT AVAILABLE FOR COMPETITION'. 3. Potential risks associated with long-term support contracts in complex environments. 4. Sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing, with a focus on defense logistics.
Value Assessment
Rating: questionable
The contract value of $189M is substantial. Without specific benchmarks for similar logistics support contracts for aircraft fleets in deployed environments, it is difficult to definitively assess pricing. However, the lack of competition suggests potential for inflated costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'NOT AVAILABLE FOR COMPETITION', indicating a lack of full and open competition. This limits price discovery and may lead to less favorable pricing for the government.
Taxpayer Impact: The substantial contract value, coupled with limited competition, raises concerns about the efficient use of taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long duration of the contract (2016-2021) means sustained potential for cost inefficiencies. Dependence on a single contractor for critical logistics could impact operational readiness if issues arise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Long contract duration
- Oversight challenges in deployed environments
Positive Signals
- Contract supports critical aircraft fleet
- Experienced contractor
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on logistics support for aircraft. Spending in this area is critical for maintaining operational capabilities but requires careful oversight to ensure value.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of small business participation in the provided data.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' award type necessitates robust oversight to ensure the contractor is performing effectively and that costs are reasonable. The long duration and deployed nature of the support add complexity to oversight.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Potential for cost creep
- Lack of transparency in pricing
- Contract duration and scope
- Geopolitical risks in operational area
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $189.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF IRAQ CONTRACTOR LOGISTICS SUPPORT FOR CESSNA C208/C172 FLEET OF AIRCRAFTS
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 $189.0 million.
What is the period of performance?
Start: 2016-01-01. End: 2021-06-30.
What specific factors justified the 'NOT AVAILABLE FOR COMPETITION' award, and were alternatives thoroughly explored?
The justification for a 'NOT AVAILABLE FOR COMPETITION' award typically involves unique capabilities, urgent needs, or lack of sources. Without detailed documentation, it's unclear if these criteria were met or if a more competitive approach was feasible. Thorough exploration of alternatives is crucial to ensure the government isn't foregoing potential cost savings and innovation.
How is the government ensuring cost reasonableness and performance quality given the lack of competition and the contract's deployed operational context?
Ensuring cost reasonableness and performance quality in non-competitive, deployed contracts relies heavily on strong government oversight, including detailed performance metrics, regular audits, and potentially independent cost analyses. The firm-fixed-price structure provides some cost control, but effective management and monitoring are paramount to prevent overspending and ensure mission success.
What is the long-term strategy for aircraft logistics support in this region, and does this contract align with it?
This contract covers a significant period (2016-2021), suggesting a long-term need. Understanding the government's broader strategy for maintaining its aircraft fleet in Iraq is essential. This contract's alignment with that strategy, including plans for future support and potential transitions, impacts overall program effectiveness and taxpayer investment.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 173 AMERICAN CONCOURSE, FORT WORTH, TX, 76106
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: $235,000,000
Exercised Options: $189,021,624
Current Obligation: $189,021,624
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $13,023,974
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-01-01
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 00:00:00
Last Modified: 2023-04-18
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)