DoD Awards $22M for LAIRCM AAQ-24 Repairs to Northrop Grumman, Lacking Competition

Contract Overview

Contract Amount: $21,977,088 ($22.0M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2024-12-18

End Date: 2025-08-31

Contract Duration: 256 days

Daily Burn Rate: $85.8K/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 $22.0 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 competitive pricing. 3. Potential for higher costs due to lack of market competition. 4. Focus on critical defense electronic maintenance.

Value Assessment

Rating: questionable

The $21.98 million award for LAIRCM AAQ-24 repairs appears high given the lack of competition. Benchmarking against similar specialized electronic repair contracts is difficult without more data, but sole-source awards often carry a price premium.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in less favorable pricing for the government compared to a competitive process.

Taxpayer Impact: The lack of competition could lead to taxpayers paying more than necessary for these essential repair services.

Public Impact

Ensures continued operational readiness of critical aircraft defense systems. Supports specialized maintenance capabilities within the defense industrial base. Potential for increased costs impacts overall defense budget allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Essential system maintenance
Supports operational readiness

Sector Analysis

This contract falls under the Electronic and Precision Equipment Repair and Maintenance sector, a critical component of defense readiness. Spending in this area is often high due to the specialized nature and complexity of the equipment requiring expert maintenance.

Small Business Impact

The data indicates this contract was awarded to Northrop Grumman Systems Corp, a large business. There is no indication that small businesses were involved in this specific award, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair and reasonable pricing. Further review of the justification for not competing the contract is recommended to ensure accountability.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Potential for price gouging
Limited transparency
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 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 $22.0 million.

What is the period of performance?

Start: 2024-12-18. End: 2025-08-31.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's difficult to assess the validity of this justification and whether alternatives were adequately explored.

How does the $21.98 million price compare to industry benchmarks for similar repair services?

Benchmarking this price is challenging without detailed cost breakdowns and specific comparisons to similar, competitively awarded contracts for LAIRCM systems or comparable advanced defense electronics. The lack of competition inherently makes direct price comparison difficult and raises concerns about potential overpayment.

What is the long-term impact on the Air Force's budget if sole-source awards become the norm for these repairs?

If sole-source awards become standard for these repairs, the Air Force's budget could face significant strain due to potentially higher costs. This could necessitate budget reallocations, reduce funding for other critical programs, or lead to a decline in overall acquisition value for taxpayer money.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA852222R0004

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: $21,977,088

Exercised Options: $21,977,088

Current Obligation: $21,977,088

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA852224D0004

IDV Type: IDC

Timeline