Naval Air Systems Command awards $14.6M contract for aircraft structural component repair to Northrop Grumman
Contract Overview
Contract Amount: $14,595,468 ($14.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2006-03-09
End Date: 2008-01-31
Contract Duration: 693 days
Daily Burn Rate: $21.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200606!340457!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001906C0083 !A!N! !N! ! !20060309!20071130!077652761!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!600 GRUMMAN RD WEST !BETHPAGE !NY!11714!62500!109!12!SAINT AUGUSTINE !ST. JOHNS !FLORIDA !+000012903905!N!N!000012903905!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1A!A!Y!F! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y!1700!N00019!0001! !
Place of Performance
Location: BETHPAGE, NASSAU County, NEW YORK, 11714
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $14.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200606!340457!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001906C0083 !A!N! !N! ! !20060309!20071130!077652761!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!600 GRUMMAN RD WEST !BETHPAGE !NY!11714!62500!109!12!SAINT AUGUSTINE !ST. … Key points: 1. Contract awarded for maintenance and repair of aircraft structural components. 2. Sole-source award to Northrop Grumman Systems Corporation, indicating a lack of competition. 3. Contract duration of 693 days suggests a need for ongoing support. 4. The award falls under the 'Aircraft Manufacturing' industry, specifically airframes and spares. 5. Fixed-price contract type aims to control costs for the government. 6. The contract value of $14.6 million is a significant investment in aircraft sustainment.
Value Assessment
Rating: fair
The contract value of $14.6 million for aircraft structural component repair appears to be within a reasonable range for specialized maintenance services. However, without specific details on the scope of work, the number of components, or the complexity of repairs, a precise value-for-money assessment is challenging. Benchmarking against similar sole-source contracts for aircraft structural repairs would be necessary for a more definitive evaluation. The fixed-price nature of the contract provides some cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the original equipment manufacturer. The lack of competition means the government did not benefit from potential price reductions or innovative solutions that might arise from a competitive bidding process. This approach can sometimes lead to higher costs compared to a competed contract.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down prices. The government's ability to negotiate the best possible price was limited in this sole-source scenario.
Public Impact
The primary beneficiaries are the U.S. Navy's aviation units that rely on well-maintained aircraft for operational readiness. The contract delivers essential maintenance and repair services for aircraft structural components, ensuring airworthiness and safety. The geographic impact is primarily centered around the Naval Air Systems Command and the contractor's facilities in New York and potentially Florida. The contract supports specialized jobs within the aerospace and defense industry, particularly in aircraft structural repair and maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
- Lack of transparency in the justification for a sole-source award.
- Potential for cost overruns if the fixed-price contract does not adequately account for all repair complexities.
Positive Signals
- Fixed-price contract type provides cost predictability for the government.
- Award to an established contractor (Northrop Grumman) suggests a level of trust in their capabilities.
- Focus on essential maintenance and repair ensures operational readiness of naval aircraft.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance, repair, and overhaul (MRO). The market for aircraft structural components is characterized by high technical expertise and stringent quality requirements. Northrop Grumman is a major player in this sector. Comparable spending benchmarks would involve analyzing other contracts for similar MRO services on naval aircraft, considering factors like aircraft type, component complexity, and contract duration.
Small Business Impact
This contract does not appear to have a small business set-aside component, as it was awarded directly to Northrop Grumman Systems Corporation. There is no explicit information regarding subcontracting opportunities for small businesses within this award. The focus on a large, established prime contractor may limit direct opportunities for small businesses unless they are part of Northrop Grumman's supply chain.
Oversight & Accountability
Oversight for this contract would typically be managed by the Naval Air Systems Command (NAVAIR) and potentially the Defense Contract Management Agency (DCMA). Accountability measures would be embedded in the contract terms, including performance standards and delivery schedules. Transparency is limited due to the sole-source nature and the lack of detailed public justification. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Naval Air Systems Command (NAVAIR) Contracts
- Aircraft Structural Repair Services
- Defense Maintenance and Repair Contracts
- Northrop Grumman Defense Contracts
Risk Flags
- Sole-source award lacks competitive pricing.
- Limited public justification for sole-source determination.
- Potential for higher costs due to lack of competition.
Tags
defense, naval-air-systems-command, northrop-grumman-systems-corporation, aircraft-structural-components, maintenance-and-repair, sole-source, firm-fixed-price, new-york, defense-contract-management-agency, aircraft-manufacturing, airframes-and-spares
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200606!340457!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001906C0083 !A!N! !N! ! !20060309!20071130!077652761!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!600 GRUMMAN RD WEST !BETHPAGE !NY!11714!62500!109!12!SAINT AUGUSTINE !ST. JOHNS !FLORIDA !+000012903905!N!N!000012903905!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336411!E! !3! ! ! ! ! !999
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 $14.6 million.
What is the period of performance?
Start: 2006-03-09. End: 2008-01-31.
What specific aircraft models and components are covered under this maintenance and repair contract?
The provided data indicates the contract is for 'MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS' and falls under the PSC code '336411' (Aircraft Structural Component Manufacturing) and the product service line 'AIRFRAMES AND SPARES'. However, the specific aircraft models (e.g., F/A-18, P-8 Poseidon) and the exact types of structural components (e.g., fuselage sections, wing components, landing gear structures) are not detailed in the provided summary data. This level of specificity is typically found in the detailed contract statement of work (SOW), which is not publicly available in this abbreviated format. Understanding the specific assets supported would allow for a more precise assessment of the contract's criticality and value.
What was the justification for awarding this contract on a sole-source basis to Northrop Grumman?
The data explicitly states the contract type as 'NOT COMPETED', indicating a sole-source award. The specific justification for this sole-source determination is not provided in the summary data. Common reasons for sole-source awards in defense contracting include: the contractor being the original equipment manufacturer (OEM) with unique knowledge or tooling; the existence of proprietary technology or data rights; or a critical need where only one source can meet urgent requirements. Without the official justification document (e.g., a Justification and Approval for Other Than Full and Open Competition - J&A), it is impossible to definitively state why competition was precluded. This lack of transparency is a common concern with sole-source awards.
How does the $14.6 million contract value compare to historical spending on similar aircraft structural repair services?
The contract value is $14,595,468.30. To benchmark this against historical spending, one would need to identify previous contracts for similar services (maintenance and repair of aircraft structural components) awarded by NAVAIR or other Department of Defense entities, preferably to the same or similar contractors. Key comparison points would include the specific aircraft platforms supported, the scope of work (e.g., depot-level maintenance vs. field-level repairs), the duration of the contract, and the contract type (e.g., fixed-price vs. cost-plus). Without access to a comprehensive database of historical contract data and the detailed SOW for this specific contract, a direct comparison is difficult. However, $14.6 million represents a substantial investment, suggesting a significant scope of work or high-value components are involved.
What are the potential risks associated with a sole-source contract for aircraft structural repairs?
The primary risk associated with a sole-source contract is the potential for reduced value for money due to the lack of competition. Without competing bids, the government may not achieve the lowest possible price, and the contractor may have less incentive to innovate or improve efficiency. Other risks include vendor lock-in, where the government becomes dependent on a single supplier, potentially limiting future options or increasing long-term costs. There's also a risk that the contractor might not perform optimally if they perceive a lack of oversight or competitive pressure. For critical components like aircraft structures, ensuring quality and reliability is paramount, and a sole-source award requires robust government oversight to mitigate performance risks.
What is Northrop Grumman's track record with NAVAIR and similar repair contracts?
Northrop Grumman Systems Corporation is a major defense contractor with a long history of working with the Department of Defense, including NAVAIR. They are involved in the design, development, manufacturing, and sustainment of various military aircraft and systems. While this specific data point doesn't detail their performance history on this particular contract (as it's a new award), their extensive experience in aerospace manufacturing and sustainment suggests they possess the necessary technical capabilities and infrastructure. NAVAIR likely selected them based on past performance, existing relationships, and potentially unique qualifications related to the specific aircraft or components requiring repair. A deeper dive into contract databases would reveal specific past performance ratings and award histories.
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 COMPETED
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 GRUMMAN RD WEST, BETHPAGE, NY, 03
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2006-03-09
Current End Date: 2008-01-31
Potential End Date: 2008-01-31 00:00:00
Last Modified: 2012-09-17
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