DoD Awards Northrop Grumman $39.5M for Nonscheduled Chartered Freight Air Transportation
Contract Overview
Contract Amount: $39,463,674 ($39.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2019-04-26
End Date: 2026-01-31
Contract Duration: 2,472 days
Daily Burn Rate: $16.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: 24 MONTH CERT
Place of Performance
Location: CHANDLER, MARICOPA County, ARIZONA, 85286
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $39.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 24 MONTH CERT Key points: 1. Significant contract value of $39.5 million over 24 months. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Potential risk associated with long-term charter agreements and fluctuating fuel costs. 4. Sector is transportation, specifically air freight, crucial for logistical support.
Value Assessment
Rating: fair
The contract is a firm fixed price delivery order. Without specific benchmarks for nonscheduled chartered freight, it's difficult to definitively assess pricing. However, the duration and value suggest a substantial service requirement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders participated. This method generally promotes price discovery and competitive pricing, though the specific outcome depends on the number and quality of bids received.
Taxpayer Impact: Taxpayer funds are being utilized for essential air transportation services. The competitive award aims to ensure value for money, but ongoing monitoring is needed to confirm cost-effectiveness.
Public Impact
Ensures critical air cargo capacity for Department of Defense operations. Supports logistical chains that may require flexible and rapid deployment of goods. Potential impact on commercial air freight markets if significant capacity is reserved.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term commitment for charter services.
- Potential for price escalation due to market volatility.
- Dependence on a single contractor for a critical service.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract structure provides cost certainty.
- Supports essential government functions.
Sector Analysis
This contract falls within the transportation sector, specifically air freight services. Spending in this area is vital for government logistics and supply chain management, especially for defense and emergency response.
Small Business Impact
The awardee, Northrop Grumman Systems Corporation, is a large aerospace and defense contractor. There is no indication in the data that small businesses were specifically targeted or subcontracted for this particular award.
Oversight & Accountability
As a delivery order under a larger contract, oversight would typically involve the contracting officer and relevant program managers. Accountability for performance and adherence to contract terms is expected.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long-term commitment
- Potential for price volatility
- Dependence on single provider
- Lack of specific performance metrics in provided data
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 24 MONTH CERT
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 $39.5 million.
What is the period of performance?
Start: 2019-04-26. End: 2026-01-31.
What is the historical cost performance for similar nonscheduled chartered freight contracts awarded by the DoD?
Historical cost performance data for similar nonscheduled chartered freight contracts is crucial for a robust value assessment. Without this comparative data, it's challenging to determine if the $39.5 million award represents a competitive price. Benchmarking against previous awards, considering inflation and market conditions, would provide better insight into cost-effectiveness and potential overspending.
What are the specific risks associated with a 24-month charter agreement for nonscheduled freight?
A 24-month charter agreement for nonscheduled freight carries risks such as fluctuating fuel prices, potential changes in operational needs, and the possibility of service disruptions if the provider faces financial or operational issues. Long-term commitments can also limit flexibility in adapting to new technologies or more cost-effective solutions that may emerge during the contract period.
How effectively does this contract support the Department of the Air Force's logistical mission?
This contract likely supports the Department of the Air Force's logistical mission by providing flexible and on-demand air cargo capacity, essential for rapid deployment and contingency operations. The firm fixed price structure offers budget predictability. However, its true effectiveness hinges on the reliability of the service and its integration with the broader supply chain strategy.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1575 S PRICE RD, CHANDLER, AZ, 85286
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: $39,463,674
Exercised Options: $39,463,674
Current Obligation: $39,463,674
Actual Outlays: $3,450,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881813D0001
IDV Type: IDC
Timeline
Start Date: 2019-04-26
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-10-08
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