DoD's $26.6M JSTARS E-8C Program Support Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $26,579,976 ($26.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-11-01
End Date: 2019-10-31
Contract Duration: 364 days
Daily Burn Rate: $73.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST NO FEE
Sector: Defense
Official Description: IGF::OT::IGF SUPPORT OF JSTARS E-8C PROGRAM
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $26.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF SUPPORT OF JSTARS E-8C PROGRAM Key points: 1. The contract, valued at $26.6 million, supports the JSTARS E-8C program. 2. Awarded to Northrop Grumman Systems Corporation, this indicates a sole-source or limited competition scenario. 3. The Engineering Services NAICS code (541330) suggests specialized technical and engineering support. 4. The contract duration is one year, ending October 31, 2019.
Value Assessment
Rating: fair
The contract type is 'COST NO FEE' with zero fee, which is unusual for a service contract of this magnitude. The award amount of $26.6M is the total value, and the 'br' (budgeted rate) of 73022 suggests a benchmark for labor costs, but without more data, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was 'NOT COMPETED', indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressure is absent.
Taxpayer Impact: The lack of competition may result in higher costs than if the contract had been competitively bid, impacting taxpayer value.
Public Impact
Supports critical intelligence, surveillance, and reconnaissance (ISR) capabilities for the JSTARS E-8C aircraft. Ensures continued operational readiness and sustainment of a key military asset. Impacts the defense industrial base, specifically companies involved in aerospace engineering and support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about cost-effectiveness.
- Sole-source award limits transparency in pricing.
- Contract type 'COST NO FEE' needs further justification for a service contract.
Positive Signals
- Supports a critical national security program.
- Awarded to an established defense contractor with program expertise.
Sector Analysis
This contract falls within the Defense sector, specifically supporting aviation and intelligence programs. Spending benchmarks for engineering services in defense are highly variable, but significant contracts often involve extensive competition to ensure value.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award, suggesting limited opportunities for small businesses on this particular contract.
Oversight & Accountability
Oversight would typically be managed by the Department of the Air Force, responsible for the JSTARS program. The 'COST NO FEE' structure might simplify some oversight aspects but requires scrutiny to ensure costs are reasonable.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for inflated costs due to sole-source award
- Unusual contract type ('COST NO FEE') for services
- Limited transparency in pricing
Tags
engineering-services, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF SUPPORT OF JSTARS E-8C PROGRAM
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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $26.6 million.
What is the period of performance?
Start: 2018-11-01. End: 2019-10-31.
What is the justification for the 'COST NO FEE' contract type for engineering services, and how are costs validated?
The 'COST NO FEE' contract type is typically used when the contractor assumes no risk for cost overruns, often in specific R&D scenarios or when the government dictates the scope precisely. For engineering services, it's unusual and warrants investigation into why Northrop Grumman is not receiving a fee. Validation of costs would rely heavily on government auditing and verification of incurred expenses, as there's no profit margin to scrutinize.
What specific engineering services are being provided under this contract, and how do they contribute to the JSTARS E-8C program's effectiveness?
The NAICS code 541330 (Engineering Services) suggests a broad range of technical support, potentially including system design, integration, testing, and maintenance planning for the JSTARS E-8C platform. These services are crucial for maintaining the aircraft's complex sensor and communication systems, ensuring its continued effectiveness in intelligence gathering and battlefield management missions.
Given the sole-source nature, what steps were taken to ensure the $26.6 million award represents fair and reasonable pricing for the services rendered?
Without competition, ensuring fair and reasonable pricing is challenging. The Department of the Air Force likely relied on historical pricing data, should-cost estimates, or comparisons to similar services procured elsewhere. However, the absence of competitive bids means there's no market validation, raising questions about whether taxpayers received the best possible value for this significant investment.
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
Solicitation ID: FA852918R0006
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2000 W NASA BLVD, MELBOURNE, FL, 32902
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $26,579,976
Exercised Options: $26,579,976
Current Obligation: $26,579,976
Subaward Activity
Number of Subawards: 59
Total Subaward Amount: $126,904,885
Contract Characteristics
Commercial Item: COMMERCIAL ITEM 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: 2019-10-31
Potential End Date: 2019-10-31 00:00:00
Last Modified: 2021-04-14
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)