DoD Awards Northrop Grumman $51.4M for Nonscheduled Chartered Freight Air Transportation
Contract Overview
Contract Amount: $51,421,509 ($51.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-05-24
End Date: 2027-06-28
Contract Duration: 1,496 days
Daily Burn Rate: $34.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: EWS
Place of Performance
Location: CHANDLER, MARICOPA County, ARIZONA, 85286
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $51.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: EWS Key points: 1. Significant contract awarded to a major defense contractor. 2. Competition method indicates potential for competitive pricing. 3. Long duration suggests ongoing service needs. 4. Firm fixed price contract shifts risk to the contractor.
Value Assessment
Rating: good
The award amount of $51.4M over nearly 5 years for nonscheduled chartered freight air transportation appears reasonable given the nature of the service. Benchmarking against similar large-scale, on-demand air cargo contracts is difficult due to the specialized and often variable nature of such services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method is generally expected to yield competitive pricing and ensure the government receives best value.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment among potential service providers.
Public Impact
Ensures critical air transportation services for the Department of the Air Force. Supports military readiness and logistical operations. Potential for economic activity in the air charter industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if demand fluctuates significantly.
- Dependence on a single contractor for a critical service.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Full and open competition promotes value.
- Long-term award supports stable service provision.
Sector Analysis
This contract falls within the transportation and logistics sector, specifically air charter services. Spending in this area can fluctuate based on operational tempo and global events. Benchmarks are difficult due to the on-demand nature of nonscheduled flights.
Small Business Impact
The data indicates the award went to Northrop Grumman Systems Corporation, a large business. There is no explicit indication of small business participation in this specific award, which is common for large prime contracts.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The firm fixed price contract structure provides some inherent accountability for performance and cost. Further oversight would focus on delivery and service quality.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract duration is long, increasing exposure to market volatility.
- Reliance on a single large contractor.
- Potential for scope creep if requirements are not well-defined.
- Geopolitical events could impact flight operations and costs.
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 $51.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. EWS
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 $51.4 million.
What is the period of performance?
Start: 2023-05-24. End: 2027-06-28.
What is the typical utilization rate for these nonscheduled chartered flights?
The typical utilization rate for these nonscheduled chartered flights is not explicitly detailed in the provided data. However, the contract's duration and value suggest a consistent need for air transportation services. Actual utilization would depend on the Air Force's operational tempo, deployment schedules, and specific logistical requirements at any given time.
What are the key performance indicators (KPIs) for this contract?
Key performance indicators for this contract likely include on-time performance, flight safety records, adherence to routing and scheduling requirements, and overall mission success rates. The firm fixed price nature incentivizes the contractor to meet these KPIs efficiently to maximize profit margins.
How does this contract compare to previous awards for similar services?
Without historical data on similar contracts, a direct comparison is challenging. However, the award to Northrop Grumman under full and open competition suggests a competitive market. The $51.4M value over nearly five years indicates a substantial and ongoing requirement for these specialized air transportation services by the Air Force.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
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 SOUTH 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: $88,713,218
Exercised Options: $51,421,509
Current Obligation: $51,421,509
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881820D0003
IDV Type: IDC
Timeline
Start Date: 2023-05-24
Current End Date: 2027-06-28
Potential End Date: 2027-07-28 00:00:00
Last Modified: 2025-09-25
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