DoD Awards Northrop Grumman $67.5M for MQ-4C Triton LRIP 3 Spares
Contract Overview
Contract Amount: $67,501,139 ($67.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-09-21
End Date: 2024-01-31
Contract Duration: 1,958 days
Daily Burn Rate: $34.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MFAS SPARES BUY IN SUPPORT OF MQ-4C TRITON LRIP 3
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $67.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MFAS SPARES BUY IN SUPPORT OF MQ-4C TRITON LRIP 3 Key points: 1. Significant award for critical components of the MQ-4C Triton drone program. 2. Sole-source award to Northrop Grumman raises questions about competition and price. 3. Long contract duration (1958 days) suggests complex supply chain or production needs. 4. High value indicates substantial investment in advanced unmanned aerial vehicle technology.
Value Assessment
Rating: questionable
The contract value of $67.5M for spares over nearly 6 years is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives or previous buys.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to inflated prices, impacting the overall cost-effectiveness of the MQ-4C Triton program and potentially diverting funds from other critical defense needs.
Public Impact
Ensures continued operational readiness for the MQ-4C Triton, a key intelligence, surveillance, and reconnaissance (ISR) platform. Supports the sustainment of advanced drone technology, crucial for modern military operations. Potential for increased costs due to sole-source nature impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- Supports critical ISR platform
- Ensures program continuity
Sector Analysis
This award falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is often characterized by long development cycles, high R&D costs, and significant government oversight due to national security implications.
Small Business Impact
The contract was awarded directly to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within this specific award notice, though they may be involved further down the supply chain.
Oversight & Accountability
The Department of the Navy is the contracting agency. Oversight would typically involve program management reviews, technical inspections, and financial audits to ensure contract compliance and value for money, especially given the sole-source nature.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Long contract duration may increase cost risk.
- Lack of transparency in price determination.
- Potential for vendor lock-in.
- Dependence on a single supplier for critical spares.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $67.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. MFAS SPARES BUY IN SUPPORT OF MQ-4C TRITON LRIP 3
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 $67.5 million.
What is the period of performance?
Start: 2018-09-21. End: 2024-01-31.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of adequate competition. The contracting agency should have conducted a price analysis based on historical data, commercial pricing, or other available benchmarks to ensure the price was fair and reasonable, despite the lack of direct competition.
What are the specific risks associated with a long-duration, sole-source contract for critical aircraft spares?
Risks include potential cost overruns due to the absence of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and vulnerability to supply chain disruptions if the sole supplier faces issues. There's also a risk of vendor lock-in, making future procurements more expensive.
How does the pricing of these MQ-4C Triton spares compare to similar components for other unmanned aerial vehicles or legacy aircraft?
Without competitive data, a direct comparison is challenging. However, the pricing should be benchmarked against previous buys of the same or similar components, industry cost models, and prices for comparable parts on other DoD platforms. Any significant deviation from benchmarks warrants further investigation into cost drivers.
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: N0001914R0023
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2000 W NASA BLVD, MELBOURNE, FL, 32904
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $67,501,139
Exercised Options: $67,501,139
Current Obligation: $67,501,139
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $6,108,315
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001915G0026
IDV Type: BOA
Timeline
Start Date: 2018-09-21
Current End Date: 2024-01-31
Potential End Date: 2024-01-31 00:00:00
Last Modified: 2024-06-05
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