DoD Awards Northrop Grumman $13.1M for E-2D Aircraft Support Equipment
Contract Overview
Contract Amount: $13,130,466 ($13.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-12-22
End Date: 2024-11-22
Contract Duration: 1,431 days
Daily Burn Rate: $9.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 39 WRA AFMC, 10 CDUS AND 1 ESS TEST STATION IN SUPPORT OF E-2D AIRCRAFT
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $13.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 39 WRA AFMC, 10 CDUS AND 1 ESS TEST STATION IN SUPPORT OF E-2D AIRCRAFT Key points: 1. This award represents a significant investment in specialized aircraft support systems. 2. Northrop Grumman, a major defense contractor, is the sole awardee. 3. The contract duration extends over three years, indicating ongoing support needs. 4. The sector is dominated by large, established aerospace and defense firms.
Value Assessment
Rating: fair
The $13.1 million award for specialized test equipment appears to be within a reasonable range for complex aerospace components. However, without specific benchmarks for E-2D support systems, a precise valuation is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, likely due to the specialized nature of the equipment and the existing relationship with the prime contractor for the E-2D program. This limits price discovery and potentially increases costs.
Taxpayer Impact: Taxpayer funds are being used for a sole-source award, which warrants scrutiny to ensure fair pricing and value for money.
Public Impact
Ensures operational readiness for the E-2D Advanced Hawkeye aircraft fleet. Supports critical testing and maintenance functions for advanced naval aviation. Maintains the technological edge of U.S. naval surveillance capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Long contract duration may not reflect evolving technological needs.
- Lack of small business participation noted.
Positive Signals
- Supports a critical defense platform (E-2D Hawkeye).
- Awarded to a known, experienced contractor.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically supporting specialized aircraft components. Spending in this area is driven by military readiness and technological advancement, often involving high-value, low-volume production.
Small Business Impact
The data indicates no small business participation in this contract. This is common for highly specialized defense contracts awarded to large prime contractors, but it represents a missed opportunity for small business engagement.
Oversight & Accountability
As a sole-source award for specialized equipment, oversight should focus on validating the necessity of the sole-source justification and ensuring the contractor delivers on time and within the firm fixed price. The long duration warrants performance monitoring.
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.
- Potential for cost overruns without competitive pressure.
- Long contract duration may not align with rapid technological change.
- Lack of small business involvement.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 39 WRA AFMC, 10 CDUS AND 1 ESS TEST STATION IN SUPPORT OF E-2D AIRCRAFT
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 $13.1 million.
What is the period of performance?
Start: 2020-12-22. End: 2024-11-22.
What is the justification for the sole-source award, and has it been reviewed for potential competitive alternatives?
The justification for a sole-source award typically stems from the unique capabilities or proprietary nature of the required equipment, or the contractor's established role in the platform's lifecycle. A thorough review should confirm that no other vendor can meet the specific technical requirements or that the cost of competition outweighs the potential savings.
How does the unit cost of this test equipment compare to similar systems used for other advanced aircraft platforms?
Benchmarking the unit cost against similar specialized test equipment for other advanced platforms is crucial for assessing value. Factors like complexity, technological sophistication, and integration requirements will influence pricing. A significant deviation from established benchmarks could indicate overpricing or unique, justifiable cost drivers.
What mechanisms are in place to ensure the long-term effectiveness and maintainability of this test equipment throughout its service life?
Ensuring long-term effectiveness requires a clear plan for maintenance, calibration, and potential upgrades. The contract should specify performance standards, support responsibilities, and provisions for addressing obsolescence. Regular performance reviews and technical assessments are vital to confirm the equipment remains functional and meets operational needs.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: IT AND TELECOM - COMPUTE
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
Address: 2000 W NASA BLVD, MELBOURNE, FL, 32904
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: $13,130,466
Exercised Options: $13,130,466
Current Obligation: $13,130,466
Subaward Activity
Number of Subawards: 45
Total Subaward Amount: $27,172,505
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001920G0005
IDV Type: BOA
Timeline
Start Date: 2020-12-22
Current End Date: 2024-11-22
Potential End Date: 2024-11-22 00:00:00
Last Modified: 2025-09-15
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