DoD Awards $29.9M for LAIRCM AAQ-24 Repairs to Northrop Grumman
Contract Overview
Contract Amount: $29,910,940 ($29.9M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2021-03-25
End Date: 2021-12-14
Contract Duration: 264 days
Daily Burn Rate: $113.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LAIRCM AAQ-24 REPAIRS
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $29.9 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: LAIRCM AAQ-24 REPAIRS Key points: 1. Significant contract value for specialized aircraft system repairs. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on critical defense technology maintenance highlights national security reliance. 4. The 'Other Electronic and Precision Equipment Repair and Maintenance' sector is vital for military readiness.
Value Assessment
Rating: questionable
The contract value of $29.9 million for repairs is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar specialized repair services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition on this $29.9 million contract may result in taxpayers paying more than necessary for these critical repair services.
Public Impact
Ensures continued operational readiness of critical aircraft defense systems. Supports specialized technical expertise and employment within the defense industrial base. Highlights the importance of maintaining advanced electronic warfare capabilities for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
Positive Signals
- Essential for defense readiness
- Maintains critical technology
Sector Analysis
This contract falls within the defense sector, specifically focusing on the maintenance and repair of advanced electronic systems. Spending benchmarks in this niche area are hard to establish due to specialized requirements and limited providers.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corp, a large defense contractor. There is no indication that small businesses were involved in this specific sole-source award, limiting opportunities for them.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained the best possible value and that proper justification for non-competition was documented.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Dependency on a single contractor
- Limited transparency in pricing
Tags
other-electronic-and-precision-equipment, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.9 million to NORTHROP GRUMMAN SYSTEMS CORP. LAIRCM AAQ-24 REPAIRS
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORP.
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 $29.9 million.
What is the period of performance?
Start: 2021-03-25. End: 2021-12-14.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or the unavailability of other sources. For specialized systems like LAIRCM, the original equipment manufacturer or a highly specialized entity might be the only viable option. However, a thorough review would be needed to confirm these circumstances and ensure no competitive alternatives were overlooked.
How does the cost of these repairs compare to similar maintenance contracts for other advanced electronic warfare systems?
Benchmarking the cost of these repairs is challenging without access to detailed cost breakdowns and comparable contract data. Specialized electronic warfare systems often have unique maintenance requirements and limited service providers, which can drive up costs. A detailed cost analysis, potentially involving independent government cost estimators, would be necessary to establish a fair comparison.
What is the long-term strategy for ensuring cost-effective maintenance and upgrades for the LAIRCM system?
The long-term strategy should involve exploring options for fostering greater competition in the future, perhaps through technology refresh initiatives or by developing alternative maintenance capabilities. This could involve incentivizing Northrop Grumman to transfer knowledge or technology, or identifying other qualified contractors. Proactive planning for sustainment and upgrades is crucial to manage costs and ensure system availability.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 101 INDUSTRIAL PARK BLVD, WARNER ROBINS, GA, 31088
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: $29,910,940
Exercised Options: $29,910,940
Current Obligation: $29,910,940
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852218D0002
IDV Type: IDC
Timeline
Start Date: 2021-03-25
Current End Date: 2021-12-14
Potential End Date: 2022-12-14 00:00:00
Last Modified: 2025-04-24
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