DoD Awards Northrop Grumman $5.8M for LAIRCM/AAQ-24 Repairs Amidst Sole-Source Contract
Contract Overview
Contract Amount: $5,809,245 ($5.8M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2025-06-09
End Date: 2026-03-31
Contract Duration: 295 days
Daily Burn Rate: $19.7K/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 $5.8 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 equipment maintenance highlights national security reliance. 4. The contract falls within the broader Defense sector's maintenance and repair spending.
Value Assessment
Rating: questionable
The contract value of $5.8M for repairs is difficult to benchmark without specific details on the scope of work. However, the lack of competition suggests potential for higher pricing than if multiple vendors were involved.
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 in this sole-source award could lead to higher taxpayer costs due to the absence of market-driven price reductions.
Public Impact
Ensures continued operational readiness of critical defense aircraft systems. Supports specialized maintenance capabilities for advanced electronic equipment. Potential for increased costs to taxpayers due to sole-source procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Potential for inflated pricing
- Lack of transparency in cost justification
Positive Signals
- Maintains critical defense capabilities
- Ensures operational readiness of LAIRCM/AAQ-24 systems
Sector Analysis
This contract falls under the Defense sector, specifically focusing on the repair and maintenance of electronic and precision equipment. Spending in this area is crucial for maintaining military readiness and technological superiority.
Small Business Impact
The awardee is Northrop Grumman Systems Corp, a large business. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The sole-source nature warrants close scrutiny to ensure fair pricing and effective execution.
Related Government Programs
- Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency on pricing justification
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 $5.8 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 $5.8 million.
What is the period of performance?
Start: 2025-06-09. End: 2026-03-31.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. The government must still conduct a price analysis to ensure the awarded price is fair and reasonable, often by comparing to historical data or independent cost estimates, even without direct competition.
What are the risks associated with relying on a single contractor for critical defense system repairs?
Sole-source contracts carry risks such as potential price gouging, reduced incentive for innovation, and supply chain vulnerabilities if the sole provider faces issues. For critical defense systems, this reliance could impact readiness if the contractor fails to deliver or maintain quality standards.
How does this contract contribute to the overall effectiveness and readiness of the LAIRCM/AAQ-24 systems?
This contract is essential for maintaining the operational effectiveness and readiness of the LAIRCM/AAQ-24 systems, which are vital for protecting aircraft from missile threats. Timely and quality repairs ensure these systems function as intended, directly supporting mission success and crew safety.
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: $5,809,245
Exercised Options: $5,809,245
Current Obligation: $5,809,245
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: 2025-06-09
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-12-18
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