DoD awards Northrop Grumman $39M for JSTARS E-8C support, a sole-source contract
Contract Overview
Contract Amount: $38,969,100 ($39.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-09-30
End Date: 2021-09-29
Contract Duration: 364 days
Daily Burn Rate: $107.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
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 $39.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: JSTARS PROGRAM SUPPORT OF THE E-8C Key points: 1. Contract awarded to Northrop Grumman for JSTARS E-8C program support. 2. Significant value of $39.7 million. 3. Contract was sole-sourced, raising questions about competition. 4. Engineering services sector, with potential for high costs.
Value Assessment
Rating: questionable
The contract's value of $39.7 million for one year of support needs comparison to similar JSTARS sustainment efforts. Without competitive bidding, it's difficult to ascertain if this price represents fair market value.
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 potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition in this sole-source award may result in higher taxpayer costs compared to a competitively bid contract.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The JSTARS program is critical for intelligence, surveillance, and reconnaissance, making its support essential. Lack of transparency in the sole-source process hinders public understanding of defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Essential program support
- Experienced contractor
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting a major defense platform. Benchmarks for similar sole-source sustainment contracts for complex aircraft systems are often high due to specialized knowledge and limited providers.
Small Business Impact
This contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, which is common for large sole-source defense contracts.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price is justified and that future opportunities for competition are explored. The Defense Contract Management Agency's role is crucial in monitoring performance and costs.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in contract award.
- Dependency on a single contractor.
- No small business participation evident.
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 $39.0 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 $39.0 million.
What is the period of performance?
Start: 2020-09-30. End: 2021-09-29.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. To ensure fair pricing, the agency should conduct a thorough price analysis, potentially using historical data, cost breakdowns from the contractor, and comparisons to similar services if available. Independent cost estimates can also be used to validate the proposed price.
What are the risks associated with relying on a single contractor for critical JSTARS E-8C program support?
The primary risks include potential price escalation due to lack of competition, reduced innovation, and vulnerability if the sole contractor faces financial difficulties or operational issues. Dependence on one provider can also limit flexibility in adapting to evolving program requirements or technological advancements, potentially impacting mission readiness.
How does this sole-source award impact the overall effectiveness and cost-efficiency of the JSTARS E-8C program?
Sole-source awards can negatively impact cost-efficiency by removing competitive pressure that drives down prices. This could lead to higher overall program costs. The effectiveness might be maintained if the contractor is highly capable and responsive, but the lack of competition could stifle innovation and prevent the adoption of potentially more effective solutions from other providers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2000 W NASA BLVD, MELBOURNE, FL, 32904
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: $38,969,100
Exercised Options: $38,969,100
Current Obligation: $38,969,100
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $21,299,598
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852919D0002
IDV Type: IDC
Timeline
Start Date: 2020-09-30
Current End Date: 2021-09-29
Potential End Date: 2021-09-29 00:00:00
Last Modified: 2025-05-14
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