DoD Awards Northrop Grumman $13M for Global Hawk & Triton Sustainment
Contract Overview
Contract Amount: $13,000,000 ($13.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2026-01-01
End Date: 2026-12-31
Contract Duration: 364 days
Daily Burn Rate: $35.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: REPAIR AND SUSTAINMENT OF THE RQ-4 GLOBAL HAWK AND MQ-4C TRITON SYSTEMS
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Defense obligated $13.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: REPAIR AND SUSTAINMENT OF THE RQ-4 GLOBAL HAWK AND MQ-4C TRITON SYSTEMS Key points: 1. This contract focuses on sustainment and repair for critical unmanned aerial vehicles. 2. Northrop Grumman is the sole provider for these specialized systems. 3. Potential risks include reliance on a single supplier and the complexity of advanced aerospace technology. 4. The sector is defense aerospace, a high-cost, high-stakes industry.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. The awarded amount of $13M is for a single delivery order, making direct comparison difficult without knowing the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award likely due to Northrop Grumman's unique position as the manufacturer and sustainment provider for these specific systems. This limits price discovery and potentially increases costs for the government.
Taxpayer Impact: Taxpayer funds are being used for a sole-source contract, which may not represent the best value compared to a competitive procurement.
Public Impact
Ensures continued operational readiness of vital intelligence, surveillance, and reconnaissance (ISR) platforms. Supports high-tech jobs in aerospace manufacturing and maintenance. Contributes to national security by maintaining advanced defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- High-value, specialized equipment
Positive Signals
- Ensures critical system availability
- Supports advanced technology maintenance
Sector Analysis
This contract falls within the defense aerospace sector, characterized by high R&D costs, long product lifecycles, and significant government reliance on a few prime contractors. Spending benchmarks are difficult to establish due to the unique nature of these platforms.
Small Business Impact
This award went to a large prime contractor, Northrop Grumman. There is no indication of small business participation in this specific delivery order, though larger defense contracts often have subcontracting plans.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be critical to manage the cost-plus fixed fee structure and ensure the contractor meets performance requirements for sustainment and repair.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus contract type can incentivize higher spending.
- High reliance on a single contractor for critical systems.
- Complexity of advanced aerospace technology increases sustainment costs and risks.
- Lack of transparency in specific scope of work for this delivery order.
Tags
other-electronic-and-precision-equipment, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. REPAIR AND SUSTAINMENT OF THE RQ-4 GLOBAL HAWK AND MQ-4C TRITON SYSTEMS
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 $13.0 million.
What is the period of performance?
Start: 2026-01-01. End: 2026-12-31.
What is the historical cost trend for sustaining the RQ-4 Global Hawk and MQ-4C Triton systems, and how does this $13M delivery order compare?
Historical cost data for sustaining these complex unmanned aerial systems is not publicly available in detail. However, given their advanced technology and specialized nature, sustainment costs are typically high. This $13M delivery order represents a portion of the annual sustainment budget, and its value should be assessed against previous orders and projected future needs to determine if it aligns with expected cost trends.
What are the specific risks associated with relying solely on Northrop Grumman for the repair and sustainment of these critical defense assets?
The primary risk is a lack of competitive pressure, potentially leading to inflated prices and reduced incentive for innovation or efficiency. Dependence on a single supplier also creates vulnerability to supply chain disruptions, production issues, or changes in the contractor's business strategy. Furthermore, the government may have limited leverage if significant modifications or upgrades are required.
How effectively does the Cost Plus Fixed Fee (CPFF) contract type ensure value for money in this sole-source sustainment scenario?
The CPFF structure aims to provide a degree of cost control by capping the contractor's fee, but it still allows the contractor to recover all allowable costs. In a sole-source situation, the effectiveness hinges heavily on robust government oversight to scrutinize costs and prevent inefficiencies. Without competition, the 'fixed fee' component may not be as strong a driver for cost savings as it would be in a more competitive environment.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other 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: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 17066 GOLDENTOP RD, SAN DIEGO, CA, 92127
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: $72,280,233
Exercised Options: $72,280,233
Current Obligation: $13,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA853921D0001
IDV Type: IDC
Timeline
Start Date: 2026-01-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-02-03
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