DoD Awards $5.36M for LAIRCM AAQ-24 Repairs to Northrop Grumman, Lacking Competition
Contract Overview
Contract Amount: $5,356,680 ($5.4M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2025-01-30
End Date: 2026-04-30
Contract Duration: 455 days
Daily Burn Rate: $11.8K/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 $5.4 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 to Northrop Grumman raises competition concerns. 3. Potential for inflated costs due to lack of competitive bidding. 4. Focus on defense electronics maintenance sector.
Value Assessment
Rating: questionable
The contract value of $5.36M for repairs is substantial. Without competitive benchmarks, it's difficult to assess if this price is fair 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 may lead to higher costs for taxpayers as there is no market pressure to reduce prices.
Taxpayer Impact: The lack of competition likely results in higher costs for taxpayers compared to a competitively awarded contract.
Public Impact
Ensures operational readiness of critical defense aircraft systems. Supports specialized maintenance capabilities within the defense industrial base. Potential impact on future sole-source contract trends.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for cost overruns
Positive Signals
- Essential system maintenance
- Supports critical defense capability
Sector Analysis
This contract falls within the defense electronics repair and maintenance sector, which often involves highly specialized skills and proprietary technology. Benchmarks for such niche services can be difficult to establish.
Small Business Impact
The data indicates no specific provisions or set-asides for small businesses in this sole-source contract, suggesting limited direct impact on the small business sector for this particular award.
Oversight & Accountability
Oversight will be crucial to ensure Northrop Grumman delivers quality repairs within the agreed-upon timeline and budget, especially given the sole-source nature of the award.
Related Government Programs
- Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for higher costs due to lack of bidding.
- Limited transparency on justification for sole-sourcing.
- No clear small business participation noted.
Tags
electronic-and-precision-equipment-repai, department-of-defense, ga, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.4 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $5.4 million.
What is the period of performance?
Start: 2025-01-30. End: 2026-04-30.
What is the justification for the sole-source award, and has Northrop Grumman demonstrated unique capabilities or proprietary knowledge essential for these repairs?
The justification for a sole-source award typically centers on the contractor possessing unique capabilities, proprietary data, or being the only source capable of performing the required work. For LAIRCM AAQ-24 repairs, this could involve specialized technical knowledge, access to unique tooling, or specific certifications required by the manufacturer. Without this information, it's difficult to validate the necessity of bypassing competition.
What measures are in place to ensure cost reasonableness and prevent potential overpricing given the absence of competitive bidding?
To mitigate cost risks in sole-source contracts, agencies often employ robust cost analysis techniques, including detailed review of the contractor's proposed costs, comparison with historical data for similar services (if available), and negotiation of profit margins. Independent government cost estimates and audits can also be utilized to ensure the price paid is fair and reasonable.
How will the effectiveness of these repairs be measured to ensure the long-term operational readiness of the LAIRCM AAQ-24 systems?
Effectiveness will likely be measured through performance metrics outlined in the contract, such as successful system testing post-repair, adherence to maintenance schedules, and reduction in reported system failures. The Defense Contract Management Agency (DCMA) will oversee the quality of work and ensure compliance with technical specifications, contributing to the overall effectiveness assessment.
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
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: $5,356,680
Exercised Options: $5,356,680
Current Obligation: $5,356,680
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
Start Date: 2025-01-30
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-12-18
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