DoD's $70.7M C-172/C-208 Contractor Logistics Support Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $70,689,872 ($70.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-07-01
End Date: 2026-06-30
Contract Duration: 1,825 days
Daily Burn Rate: $38.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IRAQ C-172/C-208 CONTRACTOR LOGISTICS SUPPORT
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76106
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $70.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IRAQ C-172/C-208 CONTRACTOR LOGISTICS SUPPORT Key points: 1. Significant contract value for specialized aircraft support. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long duration (5 years) suggests a critical, ongoing need. 4. Focus on logistics support highlights operational readiness.
Value Assessment
Rating: fair
The contract value of $70.7M over 5 years averages $14.1M annually. Benchmarking is difficult without specific service details, but this appears to be a substantial investment for contractor logistics support of specific aircraft types.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited competition award. This limits price discovery and may result in higher costs compared to a fully competitive environment.
Taxpayer Impact: Taxpayer funds are committed to a sole-source contract, potentially missing out on cost efficiencies that could be achieved through competitive bidding.
Public Impact
Ensures continued operational readiness of C-172/C-208 aircraft in potentially high-demand environments. Supports critical logistical functions, reducing the burden on military personnel. Potential for cost overruns due to lack of competition could impact overall defense spending efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- High contract value
Positive Signals
- Ensures critical operational support
- Clear contract end date
Sector Analysis
This contract falls under the 'Other Support Activities for Air Transportation' category. Spending in this sector is crucial for maintaining military aviation capabilities, with benchmarks varying widely based on aircraft type and service scope.
Small Business Impact
The awardee, Northrop Grumman Systems Corporation, is a large defense contractor. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
Oversight would typically involve contract performance monitoring by the Department of the Air Force to ensure deliverables are met and costs are managed, especially given the sole-source nature.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Long contract duration may not reflect evolving needs.
- Lack of small business participation.
- High total contract value.
Tags
other-support-activities-for-air-transpo, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IRAQ C-172/C-208 CONTRACTOR LOGISTICS SUPPORT
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 $70.7 million.
What is the period of performance?
Start: 2021-07-01. End: 2026-06-30.
What specific services are included in this contractor logistics support, and how do they compare to industry standards for similar aircraft?
The provided data does not detail the specific services included in the contractor logistics support for the C-172/C-208 aircraft. A comprehensive analysis would require access to the contract's statement of work to compare labor rates, parts markups, and overhead costs against industry benchmarks for similar aviation support contracts.
Given the sole-source nature, what mechanisms are in place to ensure the government is receiving fair and reasonable pricing?
For sole-source contracts, the government typically relies on cost and price analysis techniques, including reviewing the contractor's cost proposals, historical pricing data, and potentially conducting field pricing support. However, the absence of competition inherently limits the government's leverage in price negotiations.
How does the long-term nature of this contract impact the Air Force's ability to adapt to future technological advancements or changing mission requirements?
A five-year contract locks in current support methods and potentially technology. While providing stability, it could hinder the adoption of newer, more efficient technologies or require costly contract modifications if mission requirements evolve significantly. Flexibility clauses or regular reviews are crucial.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 173 AMERICAN CONCOURSE, FORT WORTH, TX, 76106
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $119,154,608
Exercised Options: $70,689,872
Current Obligation: $70,689,872
Subaward Activity
Number of Subawards: 87
Total Subaward Amount: $6,915,687
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-07-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2025-09-17
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