Air Force awards $38.1M for A-10 modernization, with Northrop Grumman as prime contractor
Contract Overview
Contract Amount: $38,143,020 ($38.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2016-09-29
End Date: 2021-02-18
Contract Duration: 1,603 days
Daily Burn Rate: $23.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF THIS TASK ORDER ID FOR MODERNIZATION SUPPORT FOR THE A-10 AIRCRAFT.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $38.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF THIS TASK ORDER ID FOR MODERNIZATION SUPPORT FOR THE A-10 AIRCRAFT. Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the Air Force. 3. The duration of the contract (over 4 years) indicates a significant, long-term need for A-10 modernization support. 4. The primary contractor, Northrop Grumman, has a substantial presence in defense contracting. 5. The NAICS code 541330 points to engineering services, a critical component of aircraft modernization. 6. The contract was awarded to a single bidder, which warrants further examination of the competition dynamics.
Value Assessment
Rating: fair
Benchmarking the value of this $38.1 million contract is challenging without specific deliverables or performance metrics. However, the firm-fixed-price structure suggests an attempt to control costs. Comparing this to other A-10 modernization efforts or similar engineering service contracts for aircraft sustainment would provide better context. The absence of detailed performance data makes a definitive value assessment difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically involves soliciting bids from all responsible prospective contractors. While the data indicates full and open competition, it also notes only one bid was received. This suggests that while the opportunity was broadly advertised, only one entity was capable of or chose to submit a proposal, potentially limiting price discovery and innovation.
Taxpayer Impact: A single bid under full and open competition may indicate a lack of market interest or specialized requirements that only one firm could meet. This could potentially lead to higher prices than if multiple bids were received, impacting taxpayer value.
Public Impact
The primary beneficiary is the U.S. Air Force, which receives critical modernization support for its A-10 aircraft fleet. Services delivered include engineering support essential for maintaining and upgrading the A-10's combat capabilities. The geographic impact is likely concentrated around Air Force bases where A-10s are stationed or maintained. Workforce implications include employment for engineers and technical specialists at Northrop Grumman and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite 'full and open' designation raises concerns about price competitiveness.
- Lack of detailed performance metrics makes it difficult to assess the effectiveness of the engineering services.
- The long contract duration could lead to cost overruns if not managed effectively.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the Air Force.
- Award to an established defense contractor like Northrop Grumman suggests access to specialized expertise.
- Modernization of the A-10 fleet is crucial for maintaining air superiority and supporting ground troops.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft sustainment and modernization. The market for such specialized engineering services is dominated by a few large defense contractors. Spending benchmarks for similar aircraft modernization programs can vary widely based on the scope of work, aircraft type, and technological advancements required. The $38.1 million award is a moderate sum for a multi-year engineering support contract in this domain.
Small Business Impact
The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' (small business set-aside) field is false. There is no explicit information on subcontracting plans for small businesses. Without specific set-aside goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often engage small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, but detailed performance reporting is often internal.
Related Government Programs
- A-10 Thunderbolt II Sustainment
- Air Force Aircraft Modernization Programs
- Defense Engineering Services Contracts
- Northrop Grumman Defense Contracts
Risk Flags
- Single bid received under full and open competition.
- Lack of detailed performance metrics.
- Potential for limited price competition.
Tags
defense, department-of-defense, air-force, a-10-thunderbolt-ii, northrop-grumman, engineering-services, full-and-open-competition, delivery-order, firm-fixed-price, aircraft-modernization, virginia, legacy-aircraft
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF THIS TASK ORDER ID FOR MODERNIZATION SUPPORT FOR THE A-10 AIRCRAFT.
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 $38.1 million.
What is the period of performance?
Start: 2016-09-29. End: 2021-02-18.
What specific modernization tasks were included in this $38.1 million contract for the A-10?
The provided data identifies this task order as being for 'MODERNIZATION SUPPORT FOR THE A-10 AIRCRAFT' and falls under 'Engineering Services' (NAICS 541330). However, it does not detail the specific modernization tasks. These could range from avionics upgrades, structural enhancements, software updates, to integration of new weapon systems. Without a detailed statement of work (SOW) or contract line item numbers (CLINs), the precise nature of the modernization remains unspecified. Such details are typically found in the contract award documents accessible through deeper dives into federal procurement databases.
How does the $38.1 million cost compare to other A-10 modernization efforts?
Direct comparison of the $38.1 million cost to other A-10 modernization efforts is difficult without knowing the specific scope and duration of those other efforts. The A-10 has undergone various sustainment and upgrade programs over its lifespan. For instance, the A-10C Thunderbolt II Avionics Upgrade Program (AUP) and the Precision Engagement Capability (PEC) involved significant investments. This $38.1 million contract appears to be for engineering support over approximately 4 years (1603 days), suggesting it might cover a phase of modernization or ongoing sustainment engineering rather than a complete overhaul. Broader modernization programs for legacy aircraft can cost hundreds of millions or even billions of dollars.
What are the potential risks associated with awarding a contract with only one bid?
Awarding a contract with only one bid, even under a 'full and open' competition, presents several risks. Primarily, it reduces the potential for competitive pricing, as the government lacks alternative offers to benchmark against. This can lead to paying a premium. Secondly, it limits the government's options and leverage; if the sole bidder withdraws or fails to perform, finding a replacement quickly can be challenging. It may also indicate market failures, where barriers to entry are high, or the requirement is so specialized that only one firm possesses the necessary capabilities, potentially stifling innovation and long-term cost reduction.
What is Northrop Grumman's track record with Department of Defense contracts, particularly for aircraft?
Northrop Grumman is a major defense contractor with an extensive history of working with the Department of Defense across various platforms, including aircraft. They are involved in numerous large-scale programs such as the B-21 Raider bomber, E-2D Advanced Hawkeye, and various unmanned aerial systems. Their track record includes developing, producing, and sustaining complex military aircraft. While generally considered capable, like any large contractor, they have faced scrutiny over contract performance, costs, and schedules on specific programs. Their experience with the A-10 specifically would be detailed in their contract history, but their overall portfolio demonstrates significant capacity for defense aviation work.
How has spending on A-10 support and modernization evolved over the years?
Spending on A-10 support and modernization has been a consistent, albeit fluctuating, part of the Air Force budget for decades. Early in its service life, spending focused on operational readiness and sustainment. As the aircraft aged, significant investments were made in upgrades like the A-10C program, which involved avionics and weapons system enhancements to extend its service life and improve capabilities. This $38.1 million contract represents a portion of that ongoing sustainment and modernization expenditure. Historical spending patterns would show peaks during major upgrade initiatives and lower, steady levels for routine maintenance and sustainment engineering. The total lifecycle cost for the A-10 program runs into the tens of billions of dollars when considering all aspects from procurement to sustainment and modernization.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA820216R1005
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 2340 DULLES CORNER BLVD, 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: $45,852,043
Exercised Options: $45,852,043
Current Obligation: $38,143,020
Subaward Activity
Number of Subawards: 138
Total Subaward Amount: $116,604,005
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA820209D0003
IDV Type: IDC
Timeline
Start Date: 2016-09-29
Current End Date: 2021-02-18
Potential End Date: 2021-02-18 00:00:00
Last Modified: 2022-10-29
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