Navy awards $78.9M contract for Center Barrel to Northrop Grumman in 2008, impacting aircraft parts manufacturing
Contract Overview
Contract Amount: $78,860,390 ($78.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2008-06-18
End Date: 2013-03-02
Contract Duration: 1,718 days
Daily Burn Rate: $45.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CENTER BARREL, USN (FY-08)
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $78.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CENTER BARREL, USN (FY-08) Key points: 1. The contract value of $78.9M is significant for specialized aircraft parts. 2. Northrop Grumman is a major defense contractor, indicating potential for limited competition. 3. The 'Other Aircraft Parts' category suggests a niche market with specific technical requirements. 4. Awarded in FY08, the contract's relevance to current spending benchmarks needs assessment.
Value Assessment
Rating: fair
The contract value of $78.9M for aircraft parts is substantial. Without specific unit data or comparable contracts from the same period, a precise pricing assessment is difficult. However, the duration and nature of the item suggest a complex component.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This method can lead to higher prices as market pressure is reduced, potentially impacting price discovery.
Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers due to the lack of competitive bidding and potential for inflated pricing.
Public Impact
Impacts the supply chain for naval aviation components. Affects the availability and cost of specialized aircraft parts for the Department of the Navy. Highlights the reliance on specific manufacturers for critical defense equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may have led to overpayment.
- Contract duration is long (1718 days).
- Awarded in FY08, data may be outdated.
- Specific item details are limited.
Positive Signals
- Awarded to a major defense contractor.
- Contract supports naval aviation readiness.
Sector Analysis
The contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche area is often driven by specific defense needs and can involve high-value, low-volume production runs.
Small Business Impact
The data indicates the award went to Northrop Grumman Systems Corporation, a large prime contractor. There is no direct indication of small business participation in this specific award, suggesting it may have been handled by the prime or its large subcontractors.
Oversight & Accountability
The 'CA' (Contract Award) status suggests the contract was awarded. Oversight would focus on contract performance, delivery schedules, and adherence to the firm-fixed-price terms to ensure value for money.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Outdated award data
- Limited transparency on justification
- Unknown small business participation
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $78.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CENTER BARREL, USN (FY-08)
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 Navy).
What is the total obligated amount?
The obligated amount is $78.9 million.
What is the period of performance?
Start: 2008-06-18. End: 2013-03-02.
What was the justification for not competing this contract, and how was the price determined to be fair and reasonable in the absence of competition?
The justification for not competing the contract is not provided in the data. Typically, sole-source awards require a detailed justification, such as unique capabilities, urgent need, or lack of viable alternatives. Price reasonableness in such cases is often determined through cost analysis, comparison to previous contracts for similar items, or market research on the specific components and manufacturing processes involved.
Given the award date of 2008, what is the current relevance of this contract's cost and performance data for future procurement decisions?
The 2008 award date suggests the data may have limited relevance for current procurement decisions due to inflation, technological advancements, and changes in market conditions. While historical data can provide context, current market research and benchmarking are essential for accurate cost estimations and competitive strategies in today's environment.
How did the firm-fixed-price contract structure impact the contractor's performance and the government's risk exposure for this specific aircraft part?
A firm-fixed-price contract generally places the cost risk on the contractor, incentivizing them to control costs and perform efficiently. For the government, this structure provides cost certainty. However, if the initial price was not adequately negotiated or if unforeseen technical issues arose, the government might still face risks related to quality or delivery delays if not managed through strong oversight.
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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001907R0045
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: ONE HORNET WAY, EL SEGUNDO, CA, 36
Business Categories: Category Business, Community Developed Corporation Owned Firm, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $78,860,391
Exercised Options: $78,860,390
Current Obligation: $78,860,390
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2008-06-18
Current End Date: 2013-03-02
Potential End Date: 2013-03-02 00:00:00
Last Modified: 2013-07-31
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