DoD Awards Northrop Grumman $270M for JSTARS E-8C Program Support
Contract Overview
Contract Amount: $270,138,936 ($270.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-11-01
End Date: 2023-08-31
Contract Duration: 1,764 days
Daily Burn Rate: $153.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: IGF::OT::IGF JSTARS PROGRAM SUPPORT OF E-8C
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $270.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF JSTARS PROGRAM SUPPORT OF E-8C Key points: 1. Significant contract value for a critical defense platform. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Cost-plus award fee structure may incentivize higher spending. 4. Engineering services sector is vital for defense readiness.
Value Assessment
Rating: questionable
The contract is a Cost Plus Award Fee (CPAF) type, which can lead to higher costs compared to fixed-price contracts. Without competitive bidding, it's difficult to benchmark pricing effectively against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a large contract like this may result in suboptimal pricing, impacting taxpayer value.
Public Impact
Supports the intelligence, surveillance, and reconnaissance capabilities of the E-8C JSTARS aircraft. Ensures the operational readiness of a key military asset. Impacts the defense industrial base and associated workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Supports critical defense mission
- Long-term program support
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense aerospace programs. Spending in this area is crucial for maintaining advanced military capabilities and technological superiority.
Small Business Impact
The data does not indicate any subcontracting to small businesses. Further analysis would be needed to determine if small business participation was considered or mandated.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, oversees this contract. Oversight is critical for CPAF contracts to ensure performance and manage costs effectively.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type may inflate costs
- Potential for cost overruns
- Limited transparency on pricing justification
Tags
engineering-services, department-of-defense, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $270.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF JSTARS PROGRAM SUPPORT OF E-8C
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 $270.1 million.
What is the period of performance?
Start: 2018-11-01. End: 2023-08-31.
What was the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other sources. Without a detailed justification document, it's impossible to assess if alternative competitive strategies were explored or why they were deemed unsuitable for this specific JSTARS program support.
How are performance metrics and award fees structured in this Cost Plus Award Fee contract to ensure value for money?
In a CPAF contract, award fees are tied to achieving specific performance objectives outlined in the contract. The structure of these metrics and the criteria for earning award fees are crucial for incentivizing contractor performance and ensuring that taxpayer funds are used efficiently to meet program goals.
What is the projected total cost of ownership for the JSTARS E-8C program, including this contract and future sustainment needs?
Projecting the total cost of ownership requires a comprehensive lifecycle cost analysis. This includes not only the current contract value but also anticipated future sustainment, upgrades, and operational costs. Understanding the full financial commitment is essential for long-term budget planning and resource allocation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 2000 W NASA BLVD, MELBOURNE, FL, 32902
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $488,442,143
Exercised Options: $488,442,143
Current Obligation: $270,138,936
Actual Outlays: $12,730,920
Subaward Activity
Number of Subawards: 267
Total Subaward Amount: $241,477,734
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F0960300D0210
IDV Type: IDC
Timeline
Start Date: 2018-11-01
Current End Date: 2023-08-31
Potential End Date: 2023-08-31 00:00:00
Last Modified: 2024-07-24
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