DoD awards Northrop Grumman $29.4M for Full Scale Fatigue Test, raising cost concerns
Contract Overview
Contract Amount: $29,404,681 ($29.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-06-10
End Date: 2028-02-29
Contract Duration: 2,090 days
Daily Burn Rate: $14.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: FULL SCALE FATIGUE TEST
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Defense obligated $29.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: FULL SCALE FATIGUE TEST Key points: 1. High contract value for specialized testing. 2. Sole-source award limits competitive pricing. 3. Long duration may indicate complex requirements. 4. Potential for cost overruns in Cost Plus Fixed Fee contracts.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes it difficult to benchmark pricing effectively against similar fatigue testing services. The awarded amount of $29.4M over 2090 days suggests a significant investment, but without competitive bids, the value proposition is uncertain.
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 approach bypasses the competitive process, potentially leading to higher prices and reduced innovation compared to a fully competed contract. Price discovery is limited in such scenarios.
Taxpayer Impact: Taxpayer funds may be at risk of being spent inefficiently due to the lack of competitive pressure on pricing and performance.
Public Impact
Ensures critical aircraft component durability through rigorous testing. Supports ongoing readiness and safety for naval aviation assets. Investment in advanced manufacturing and testing capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Critical testing for defense readiness
- Supports advanced aircraft programs
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts and auxiliary equipment. Spending in this area is often driven by defense needs and technological advancements, with significant investments in research, development, and testing.
Small Business Impact
The awardee, Northrop Grumman Systems Corporation, is a large defense contractor. There is no indication in the provided data that small businesses were involved as subcontractors or partners in this specific contract, suggesting limited direct impact on the small business sector for this procurement.
Oversight & Accountability
The Department of the Navy awarded this contract. Oversight will be crucial to manage costs and ensure the testing meets all specified requirements, especially given the sole-source and cost-plus nature of the agreement. Accountability for performance and budget adherence is paramount.
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.
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration increases risk exposure.
- Lack of small business participation.
- Potential for scope creep without strict oversight.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. FULL SCALE FATIGUE TEST
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 $29.4 million.
What is the period of performance?
Start: 2022-06-10. End: 2028-02-29.
What specific technical requirements necessitate a sole-source award for this full-scale fatigue test, and how are these requirements justified?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs that only a specific contractor can meet. For this fatigue test, it might involve specialized equipment, extensive prior knowledge of the specific aircraft system, or critical integration requirements that make switching contractors infeasible or excessively costly. Detailed documentation from the Department of the Navy would be needed to fully assess the technical rationale.
How will the Department of the Navy ensure cost control and prevent potential overruns within the Cost Plus Fixed Fee structure for this long-duration contract?
Effective cost control for a CPFF contract involves robust oversight, detailed progress monitoring, and stringent review of incurred costs against the fixed fee. The Navy should implement regular audits, performance reviews, and milestone tracking. Clear communication channels and defined change control processes are essential to manage scope creep and ensure that all costs are reasonable, allocable, and necessary for the contract's objectives.
What is the expected impact of this fatigue testing on the operational readiness and lifespan of the specific naval aircraft components being evaluated?
Full-scale fatigue testing is designed to simulate the stresses and strains an aircraft component will experience over its operational life. Successful completion of this test is expected to validate the design's durability, identify potential failure points before they occur in the field, and inform maintenance schedules. This directly contributes to enhanced operational readiness, improved safety, and potentially extends the service life of the aircraft, thereby maximizing the return on investment for the taxpayer.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $40,651,605
Exercised Options: $40,651,605
Current Obligation: $29,404,681
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $10,257,029
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001920G0005
IDV Type: BOA
Timeline
Start Date: 2022-06-10
Current End Date: 2028-02-29
Potential End Date: 2028-02-29 00:00:00
Last Modified: 2025-12-04
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