DoD Awards Northrop Grumman $7.5M for C-208 Aircraft Sustainment Through 2026
Contract Overview
Contract Amount: $7,543,471 ($7.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-03-15
End Date: 2026-12-31
Contract Duration: 656 days
Daily Burn Rate: $11.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LEBANON C-208 SUSTAINMENT
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76106
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $7.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LEBANON C-208 SUSTAINMENT Key points: 1. Contract awarded to a single, established provider for specialized aircraft sustainment. 2. Limited competition due to the specific nature of C-208 sustainment requirements. 3. Potential risk associated with sole-source awards and long-term sustainment contracts. 4. Spending falls within the Aircraft Manufacturing sector, with specific benchmarks to be assessed.
Value Assessment
Rating: fair
The contract value of $7.54 million for a duration of over two years appears reasonable for specialized aircraft sustainment. However, without specific per-unit cost data or comparison to similar C-208 sustainment contracts, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited or sole-source approach. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this sustainment service, as market forces are not fully leveraged to drive down costs.
Public Impact
Ensures continued operational readiness of C-208 aircraft critical for various missions. Supports a key defense contractor, contributing to the aerospace and defense industrial base. Potential for cost overruns due to limited competition impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Long-term sustainment contracts can be prone to scope creep.
- Lack of detailed cost breakdown makes value assessment difficult.
Positive Signals
- Ensures critical aircraft sustainment.
- Contract awarded to a known entity with relevant expertise.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically focusing on sustainment services for the C-208 aircraft. Spending benchmarks for similar specialized aircraft sustainment contracts would be necessary for a more precise comparison.
Small Business Impact
This contract does not appear to directly benefit small businesses, as it is awarded to a large corporation, Northrop Grumman. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The definitive contract structure suggests a degree of oversight, but the limited competition raises questions about the effectiveness of price oversight. Further review of performance metrics and cost controls would be beneficial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition
- Potential for cost overruns
- Lack of detailed cost transparency
- Long-term sustainment contract
Tags
aircraft-manufacturing, department-of-defense, tx, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LEBANON C-208 SUSTAINMENT
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 $7.5 million.
What is the period of performance?
Start: 2025-03-15. End: 2026-12-31.
What is the historical cost performance of Northrop Grumman for C-208 sustainment, and how does it compare to industry averages?
Historical cost performance data for Northrop Grumman's C-208 sustainment is not publicly available. A comprehensive comparison to industry averages would require access to proprietary cost data and detailed performance metrics across multiple sustainment contracts. Without this, it's difficult to definitively assess if this $7.54 million award represents optimal value or if there are opportunities for cost savings through competitive benchmarking.
What specific factors necessitated a limited competition approach for this C-208 sustainment contract, and what are the associated risks?
The necessity for limited competition likely stems from the specialized nature of C-208 sustainment, requiring unique technical expertise, proprietary data, or specific tooling held by Northrop Grumman. The primary risk is the potential for inflated pricing due to the absence of competitive pressure. This can lead to inefficient use of taxpayer funds and may reduce the incentive for the contractor to innovate or optimize costs over the contract's duration.
How will the effectiveness of this sustainment contract be measured to ensure mission readiness and taxpayer value?
Effectiveness will likely be measured through key performance indicators (KPIs) related to aircraft availability, turnaround time for repairs, quality of work, and adherence to maintenance schedules. The Department of the Air Force will monitor these metrics to ensure mission readiness. However, the true measure of taxpayer value is harder to quantify without a competitive baseline; ongoing cost analysis and performance reviews are crucial to ensure the contract remains effective and efficient.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,898,474
Exercised Options: $7,957,981
Current Obligation: $7,543,471
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-03-15
Current End Date: 2026-12-31
Potential End Date: 2029-12-31 00:00:00
Last Modified: 2025-12-18
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