DoD awards $20.9M for A-10 modernization, with Northrop Grumman as prime contractor
Contract Overview
Contract Amount: $20,921,591 ($20.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-01-04
End Date: 2026-01-02
Contract Duration: 1,824 days
Daily Burn Rate: $11.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS TASK ORDER IS FOR MODERNIZATION SUPPORT FOR THE A-10 AIRCRAFT.
Place of Performance
Location: CLEARFIELD, DAVIS County, UTAH, 84015
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $20.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THIS TASK ORDER IS FOR MODERNIZATION SUPPORT FOR THE A-10 AIRCRAFT. Key points: 1. Contract focuses on critical modernization support for the A-10 aircraft. 2. Full and open competition was utilized for this delivery order. 3. The contract is firm-fixed-price, indicating defined costs for the government. 4. Performance period spans over 1800 days, suggesting a long-term engagement. 5. The prime contractor, Northrop Grumman, has extensive aerospace and defense experience. 6. This task order falls under engineering services, a key support function.
Value Assessment
Rating: good
The contract value of $20.9 million for A-10 modernization support appears reasonable given the scope and duration. As a firm-fixed-price delivery order, it provides cost certainty. Benchmarking against similar aircraft modernization contracts would offer further insight, but the nature of specialized aerospace engineering services often commands significant investment. The specific value for modernization support is not directly comparable to raw aircraft procurement costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The use of full and open competition is generally preferred as it fosters a competitive environment, potentially leading to better pricing and innovative solutions. The number of bidders is not specified, but the process itself indicates a robust selection mechanism.
Taxpayer Impact: Full and open competition maximizes the potential for the government to secure the best value for taxpayer dollars by encouraging a wide range of offers and driving down prices through market forces.
Public Impact
The U.S. Air Force benefits from enhanced capabilities and extended service life for its A-10 Warthog fleet. This contract ensures the continued operational readiness and effectiveness of a critical close air support aircraft. The modernization efforts will likely support the warfighter by providing updated systems and improved survivability. Workforce implications may include specialized engineering and technical roles within Northrop Grumman and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if modernization requirements evolve beyond initial scope.
- Dependence on a single prime contractor for critical modernization tasks.
- Risk of schedule delays impacting A-10 fleet readiness if unforeseen technical challenges arise.
Positive Signals
- Firm-fixed-price contract structure provides cost predictability.
- Long-term performance period allows for comprehensive modernization.
- Awarded through full and open competition, suggesting competitive pricing.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft modernization and engineering services. The market for defense engineering services is substantial, driven by the need to maintain and upgrade aging military platforms. Northrop Grumman is a major player in this sector, with a long history of supporting complex defense programs. Comparable spending benchmarks would involve looking at other major aircraft sustainment and upgrade contracts within the DoD.
Small Business Impact
While this contract was awarded under full and open competition and does not explicitly mention small business set-asides, large prime contractors like Northrop Grumman are often required to meet subcontracting goals. The extent to which small businesses will participate as subcontractors will be a key factor in assessing the impact on the small business ecosystem. Further review of subcontracting plans would be necessary for a complete analysis.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of the Air Force contracting and program management offices. Northrop Grumman, as a major defense contractor, is subject to standard government oversight protocols, including audits and performance reviews. Transparency is generally maintained through contract reporting mechanisms, and any significant issues would likely fall under the purview of the Department of Defense's Inspector General.
Related Government Programs
- A-10 Thunderbolt II Sustainment Programs
- Air Force Aircraft Modernization Contracts
- Defense Engineering Services Contracts
- Northrop Grumman Defense Contracts
Risk Flags
- Potential for scope creep
- Contractor performance risk
- Technical integration challenges
Tags
defense, department-of-defense, department-of-the-air-force, northrop-grumman-systems-corporation, engineering-services, full-and-open-competition, delivery-order, firm-fixed-price, aircraft-modernization, a-10-warthog, utah, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THIS TASK ORDER IS 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 $20.9 million.
What is the period of performance?
Start: 2021-01-04. End: 2026-01-02.
What is Northrop Grumman's track record with A-10 modernization or similar aircraft programs?
Northrop Grumman has a significant history in aerospace and defense, including extensive work on aircraft sustainment, upgrades, and modernization across various platforms. While specific details on their A-10 modernization track record require deeper investigation into past contracts and performance reviews, their broad experience with complex military aircraft systems suggests a strong capability. They have been involved in major programs for the Air Force and other branches, often serving as prime contractors for sophisticated engineering and manufacturing efforts. Assessing their performance on this specific task order will involve monitoring project milestones, adherence to budget, and the successful implementation of modernization solutions for the A-10 fleet.
How does the $20.9 million value compare to other A-10 modernization efforts or similar aircraft engineering services?
Directly comparing the $20.9 million value of this specific task order to other A-10 modernization efforts or similar engineering services requires access to detailed contract data for comparable projects. However, as a firm-fixed-price delivery order for modernization support over approximately five years, the amount appears to be within a reasonable range for specialized aerospace engineering. The A-10 is a mature platform, and modernization efforts often involve significant investment in avionics, structural integrity, and system upgrades. Benchmarking against contracts for other legacy aircraft sustainment and upgrade programs within the DoD, particularly those involving complex engineering services, would provide a more robust comparison. The absence of raw dollar amounts for comparable contracts in this dataset necessitates a qualitative assessment based on the scope and duration.
What are the primary risks associated with this A-10 modernization contract?
The primary risks associated with this A-10 modernization contract include potential technical challenges in integrating new systems with an older airframe, which could lead to schedule delays and cost overruns. Dependence on a single prime contractor, Northrop Grumman, for critical modernization tasks presents a risk if performance issues arise or if their capacity is stretched thin by other programs. Furthermore, evolving threat environments or changing operational requirements could necessitate scope adjustments, impacting the original cost and timeline. Ensuring effective project management and robust oversight will be crucial to mitigating these risks and achieving the desired modernization outcomes for the A-10 fleet.
How effective is the firm-fixed-price contract type in managing costs for this modernization effort?
The firm-fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and risks are understood. For this A-10 modernization task order, FFP provides the government with cost certainty, as the contractor assumes the risk of cost overruns. This structure incentivizes the contractor to control expenses and deliver the specified modernization services within the agreed-upon price. However, if unforeseen technical complexities or significant changes in requirements emerge during the contract period, the FFP structure could potentially lead to contractor requests for equitable adjustments or disputes, especially if the initial scope was not fully comprehensive. Effective initial scope definition and change management processes are therefore critical for maximizing the cost-management benefits of FFP in this context.
What is the historical spending pattern for A-10 modernization or sustainment by the Department of the Air Force?
Historical spending patterns for A-10 modernization and sustainment by the Department of the Air Force indicate a consistent need for investment to maintain the operational readiness of this aging but vital close air support platform. Over the years, the Air Force has allocated significant funds towards various upgrade initiatives, including avionics enhancements, structural repairs, and system improvements aimed at extending the A-10's service life and adapting it to evolving threats. Specific annual spending figures can fluctuate based on the phase of modernization programs, the urgency of identified deficiencies, and overall budget priorities. This $20.9 million delivery order represents a component of the ongoing sustainment and modernization strategy, fitting within a broader pattern of investment in the A-10 fleet.
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: FA820220R1002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,101,929
Exercised Options: $36,101,929
Current Obligation: $20,921,591
Subaward Activity
Number of Subawards: 49
Total Subaward Amount: $20,679,736
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU325
IDV Type: IDC
Timeline
Start Date: 2021-01-04
Current End Date: 2026-01-02
Potential End Date: 2026-01-02 00:00:00
Last Modified: 2025-09-30
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