DoD Awards $296M JSTARS Support Contract to Northrop Grumman, Sole-Source
Contract Overview
Contract Amount: $296,176,942 ($296.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2019-11-01
End Date: 2024-12-30
Contract Duration: 1,886 days
Daily Burn Rate: $157.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: JSTARS PROGRAM SUPPORT OF THE E-8C
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $296.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: JSTARS PROGRAM SUPPORT OF THE E-8C Key points: 1. Significant contract value of $296M for JSTARS program support. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Engineering services sector, with potential for cost overruns. 4. Long-term contract duration (2019-2024) impacts budget predictability.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type can lead to higher costs if not managed tightly. Without competitive bidding, it's difficult to benchmark pricing against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for this substantial contract may result in taxpayers paying more than necessary for JSTARS program support.
Public Impact
Essential intelligence, surveillance, and reconnaissance capabilities are maintained. Potential for cost overruns due to sole-source, cost-plus contract. Long-term commitment impacts future defense budget allocations. Limited visibility into the efficiency of service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
- Long contract duration
Positive Signals
- Maintains critical JSTARS capabilities
- Experienced contractor
Sector Analysis
This contract falls within the Engineering Services sector, supporting the critical JSTARS airborne battlefield management and command and control platform. Spending in this sector can vary widely based on program complexity and acquisition strategy.
Small Business Impact
The data indicates no specific set-aside for small businesses in this sole-source award. This limits opportunities for small businesses to participate in supporting the JSTARS program.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and efficient service delivery. Robust contract management by the Defense Contract Management Agency is crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type increases risk of cost overruns.
- Long contract duration may not reflect evolving needs or technology.
- Lack of small business participation.
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 $296.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. JSTARS PROGRAM SUPPORT OF THE 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 $296.2 million.
What is the period of performance?
Start: 2019-11-01. End: 2024-12-30.
What is the justification for the sole-source award, and what steps are being taken to ensure cost-effectiveness?
The justification for a sole-source award typically involves unique capabilities or urgent needs. However, without competitive bidding, rigorous cost analysis and performance monitoring by the agency are essential to prevent overspending and ensure the government receives good value for taxpayer money.
What are the potential risks associated with a Cost Plus Fixed Fee contract for this program?
Cost Plus Fixed Fee contracts carry the risk of cost overruns if the contractor's costs exceed projections, as the government absorbs these increases. The fixed fee provides incentive for the contractor to control costs, but effective oversight is crucial to ensure efficiency and prevent unnecessary expenses.
How does this contract contribute to the overall effectiveness and readiness of the JSTARS platform?
This contract is vital for maintaining and supporting the operational readiness of the E-8C JSTARS aircraft, which provide critical intelligence, surveillance, and reconnaissance capabilities. Continued support ensures the platform remains effective in its mission to support combatant commanders.
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 FIXED FEE (U)
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: $296,176,942
Exercised Options: $296,176,942
Current Obligation: $296,176,942
Actual Outlays: $29,162,067
Subaward Activity
Number of Subawards: 752
Total Subaward Amount: $416,566,385
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: 2019-11-01
Current End Date: 2024-12-30
Potential End Date: 2024-12-30 00:00:00
Last Modified: 2025-09-11
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