DoD awards $29.4M to Northrop Grumman for aircraft parts, facing limited competition
Contract Overview
Contract Amount: $29,443,015 ($29.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2004-09-30
End Date: 2014-02-10
Contract Duration: 3,420 days
Daily Burn Rate: $8.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $29.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: Key points: 1. Significant contract value of $29.4 million. 2. Limited competition raises questions about price discovery. 3. Long contract duration (2004-2014) may indicate evolving needs or extended support. 4. Sector: Defense manufacturing, specifically aircraft parts.
Value Assessment
Rating: fair
The contract value is substantial. Without a clear benchmark or competitive bids, assessing the pricing against similar contracts is difficult. The fixed-price nature suggests an attempt to control costs, but the lack of competition limits definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This significantly restricts price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive environment.
Taxpayer Impact: The lack of competition likely results in a higher cost to taxpayers than if multiple vendors had vied for the contract.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long duration of the contract could impact the modernization of defense capabilities if older technologies are sustained. Dependence on a single contractor for critical aircraft parts can pose supply chain risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the Defense sector, specifically manufacturing aircraft parts. Spending in this area is critical for national security, but often involves complex supply chains and specialized components, which can influence competition.
Small Business Impact
The data does not indicate any specific provisions or awards to small businesses for this contract. The prime contractor is a large corporation, suggesting limited direct opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
The contract's long duration and limited competition warrant scrutiny. Oversight should focus on ensuring the continued necessity of the parts, fair pricing adjustments, and exploring future competitive opportunities.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for price inflation
- Long contract duration
- Limited transparency on specific parts
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, il, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. See the official description on USAspending.
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 $29.4 million.
What is the period of performance?
Start: 2004-09-30. End: 2014-02-10.
What specific aircraft parts were procured under this contract, and are there alternative suppliers available for future procurements?
The contract number 336413 suggests 'Other Aircraft Parts and Auxiliary Equipment Manufacturing.' Without further details on the specific parts, it's challenging to ascertain alternative suppliers. Future procurements should prioritize market research to identify potential competitors and ensure a competitive bidding process to secure better value.
How was the 'NOT AVAILABLE FOR COMPETITION' status justified, and what steps were taken to mitigate potential cost overruns?
The justification for 'NOT AVAILABLE FOR COMPETITION' needs detailed review. Typically, this requires demonstrating unique capabilities or urgent needs. Mitigation strategies for cost overruns in such scenarios often involve stringent contract management, performance metrics, and phased pricing reviews, though the provided data doesn't detail these.
Given the contract's 2004 start date and 2014 end date, how did the pricing evolve over its lifespan, and was it benchmarked against market rates?
The provided data does not detail pricing evolution or benchmarking against market rates over the contract's lifespan. A firm fixed price contract aims to lock in costs, but without competitive data, it's hard to confirm if the price remained fair throughout the decade. Post-award reviews would be crucial for this assessment.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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 (UEI: 967356127)
Address: 600 HICKS RD, ROLLING MEADOW, IL
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,877,160
Exercised Options: $32,877,160
Current Obligation: $29,443,015
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-09-30
Current End Date: 2014-02-10
Potential End Date: 2014-02-10 00:00:00
Last Modified: 2014-07-22
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)