DoD's $34M F-5 Avionics Upgrade for Tunisia: Northrop Grumman Awarded Sole-Source Contract
Contract Overview
Contract Amount: $33,972,974 ($34.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2015-09-16
End Date: 2020-05-31
Contract Duration: 1,719 days
Daily Burn Rate: $19.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TUNISIAN F-5 BLOCK 1 AVIONICS UPGRADE AND MAINTENANCE ACTIONS (FMS) IGF::OT::IGF
Place of Performance
Location: SAINT AUGUSTINE, SAINT JOHNS County, FLORIDA, 32095
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $34.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TUNISIAN F-5 BLOCK 1 AVIONICS UPGRADE AND MAINTENANCE ACTIONS (FMS) IGF::OT::IGF Key points: 1. The contract awarded to Northrop Grumman for $33.97M focuses on avionics upgrades and maintenance for Tunisian F-5 aircraft. 2. This is a sole-source award, indicating limited competition and potential for higher pricing. 3. The contract duration is 1719 days, spanning from September 2015 to May 2020. 4. The 'Other Support Activities for Air Transportation' PSC code suggests a focus on maintenance and sustainment rather than new development.
Value Assessment
Rating: questionable
Pricing is difficult to assess without a competitive benchmark. As a sole-source award for a foreign military sale, the government may have paid a premium due to lack of competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, likely due to specialized nature of the upgrade or specific FMS requirements. This limits price discovery and potentially increases costs for the U.S. taxpayer.
Taxpayer Impact: Taxpayer funds are used for Foreign Military Sales, and the lack of competition in this sole-source award raises concerns about cost-effectiveness.
Public Impact
Enhances the air capabilities of a partner nation, contributing to regional stability. Supports U.S. foreign policy objectives through military assistance. Funds are allocated to a major defense contractor, potentially impacting U.S. jobs. The upgrade ensures the continued operational readiness of Tunisian F-5 aircraft.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Foreign Military Sale (FMS) may involve additional administrative costs.
- Long contract duration could lead to cost overruns if not managed effectively.
Positive Signals
- Supports a key U.S. ally's defense capabilities.
- Upgrades aging aircraft to extend service life.
- Contract awarded to a reputable defense contractor.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft modernization and sustainment for a foreign military. Spending benchmarks for similar FMS avionics upgrades vary widely based on aircraft type and scope of work.
Small Business Impact
There is no indication of small business involvement in this contract, as it was awarded directly to Northrop Grumman Systems Corporation. Further analysis would be needed to determine if any subcontracting opportunities were made available to small businesses.
Oversight & Accountability
Oversight would typically be managed by the Defense Contract Management Agency (DCMA) and the relevant program office within the Department of Defense. Accountability for FMS contracts involves ensuring funds are used as intended and that deliverables meet agreed-upon specifications.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost overruns due to long contract duration.
- Lack of transparency in pricing due to no-bid nature.
- Foreign Military Sales can be complex and subject to political factors.
Tags
other-support-activities-for-air-transpo, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TUNISIAN F-5 BLOCK 1 AVIONICS UPGRADE AND MAINTENANCE ACTIONS (FMS) IGF::OT::IGF
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $34.0 million.
What is the period of performance?
Start: 2015-09-16. End: 2020-05-31.
What was the justification for awarding this contract as sole-source, and were alternative solutions considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or specific requirements tied to the existing platform that only one contractor can fulfill. For FMS cases, specific aircraft configurations and sustainment needs often dictate a sole-source approach to ensure interoperability and maintainability. Alternative solutions, if any, would have been evaluated during the initial planning phase to determine the most feasible and cost-effective path forward.
How does the per-unit cost of this avionics upgrade compare to similar upgrades on other F-5 variants or comparable aircraft?
Benchmarking the per-unit cost is challenging without access to detailed cost breakdowns and comparable contract data. However, sole-source awards for specialized avionics upgrades on aging platforms like the F-5 can often be higher than competitively bid projects. Factors such as the specific avionics suite, integration complexity, and the limited production run for these upgrades contribute to the overall cost.
What is the long-term strategic value of upgrading Tunisia's F-5 fleet, and does this contract effectively contribute to that value?
Upgrading Tunisia's F-5 fleet enhances a key regional partner's air defense capabilities, contributing to stability and counter-terrorism efforts. This contract's value lies in extending the operational life and improving the effectiveness of these aircraft. The strategic contribution is realized through a more capable Tunisian Air Force, better equipped to address regional security challenges and interoperable with NATO standards.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
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 (UEI: 967356127)
Address: 5000 US HWY 1 N, SAINT AUGUSTINE, FL, 32095
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,972,974
Exercised Options: $33,972,974
Current Obligation: $33,972,974
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-09-16
Current End Date: 2020-05-31
Potential End Date: 2020-05-31 00:00:00
Last Modified: 2022-03-02
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