DoD Awards Northrop Grumman $17.5M for Airborne Launch Control System Sustainment
Contract Overview
Contract Amount: $17,539,059 ($17.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-09-01
End Date: 2026-08-31
Contract Duration: 1,825 days
Daily Burn Rate: $9.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Defense
Official Description: GROUND SUBSYSTEMS SUPPORT CONTRACT (GSSC) 2.0 - AIRBORNE LAUNCH CONTROL SYSTEM (ALCS) SUSTAINMENT
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $17.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: GROUND SUBSYSTEMS SUPPORT CONTRACT (GSSC) 2.0 - AIRBORNE LAUNCH CONTROL SYSTEM (ALCS) SUSTAINMENT Key points: 1. Contract awarded to a single, established provider for critical aerospace systems. 2. Sustainment contract ensures continued operational readiness of the ALCS. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. Cost-plus-incentive-fee contract type allows for shared risk and reward. 5. Focus on engineering services for a specialized defense system.
Value Assessment
Rating: good
The contract type is Cost Plus Incentive Fee (CPIF), which is common for complex sustainment efforts where costs can be uncertain. Pricing will be assessed against performance metrics and cost targets.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives best value.
Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, minimizing unnecessary taxpayer expenditure for essential defense system sustainment.
Public Impact
Ensures continued operational capability of critical airborne launch control systems. Supports national security by maintaining readiness of strategic assets. Provides long-term employment for specialized engineering and technical personnel. Contributes to the stability of the aerospace defense supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in CPIF contracts.
- Reliance on a single contractor for critical system sustainment.
- Long contract duration may not adapt quickly to technological changes.
Positive Signals
- Awarded through full and open competition.
- Focus on sustainment ensures operational readiness.
- Incentive fee structure encourages cost control.
Sector Analysis
This contract falls under Engineering Services within the aerospace and defense sector. Spending in this area is crucial for maintaining complex, high-value military assets and ensuring technological superiority.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no explicit mention of small business participation in the provided data, suggesting limited direct impact on small businesses for this specific award.
Oversight & Accountability
The contract's duration and CPIF structure necessitate robust oversight to ensure cost control and performance. The Department of the Air Force will monitor expenditures and contractor performance against established metrics.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost overrun potential
- Contractor performance variability
- Technological obsolescence risk
- Sole-source dependency for critical components
Tags
engineering-services, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. GROUND SUBSYSTEMS SUPPORT CONTRACT (GSSC) 2.0 - AIRBORNE LAUNCH CONTROL SYSTEM (ALCS) SUSTAINMENT
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 $17.5 million.
What is the period of performance?
Start: 2021-09-01. End: 2026-08-31.
What is the projected cost efficiency of this CPIF contract over its full term?
The cost efficiency of this CPIF contract will depend heavily on the contractor's ability to meet or exceed cost targets and performance incentives. The Air Force's oversight will be critical in managing the incentive structure to drive efficiency. Benchmarking against similar sustainment contracts for comparable systems will be necessary to assess true cost-effectiveness.
What are the primary risks associated with relying on Northrop Grumman for ALCS sustainment?
The primary risks include potential vendor lock-in, limited flexibility in adopting new technologies if Northrop Grumman's solutions are proprietary, and the possibility of cost increases if performance targets are not met or if unforeseen technical issues arise. Dependence on a single large contractor also poses a risk if their business priorities shift.
How effectively does this contract ensure the long-term operational readiness of the ALCS?
The contract is designed to ensure long-term operational readiness by providing dedicated sustainment services. The CPIF structure incentivizes the contractor to maintain high performance standards. However, effectiveness also relies on the Air Force's proactive maintenance planning and the contractor's ability to adapt to evolving threats and system degradation over the contract's five-year duration.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 6006 WARDLEIGH RD BLDG 1575, HILL AIR FORCE BASE, UT, 84056
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,841,285
Exercised Options: $17,841,285
Current Obligation: $17,539,059
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $708,203
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA821421D0002
IDV Type: IDC
Timeline
Start Date: 2021-09-01
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 00:00:00
Last Modified: 2026-01-05
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