DoD Awards Northrop Grumman $13.8M for HAWKEYE Sustainment Through 2026
Contract Overview
Contract Amount: $13,818,860 ($13.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-05-04
End Date: 2026-04-30
Contract Duration: 726 days
Daily Burn Rate: $19.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: HAWKEYE SUSTAINMENT
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $13.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: HAWKEYE SUSTAINMENT Key points: 1. Significant contract value for aircraft parts sustainment. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Potential for cost overruns given Cost Plus Fixed Fee structure. 4. Focus on aircraft parts manufacturing falls within a critical defense sector.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs than fixed-price contracts if not managed carefully. The award amount of $13.8M for a 726-day duration needs further benchmarking against similar sustainment contracts for specialized aircraft parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Lack of competition limits price discovery and potentially leads to higher costs for the government. The justification for sole-sourcing needs to be thoroughly reviewed.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for HAWKEYE sustainment services.
Public Impact
Ensures continued operational readiness of HAWKEYE aircraft. Supports critical defense capabilities for the Department of the Navy. Impacts the aerospace and defense manufacturing sector through sustainment services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
Positive Signals
- Ensures critical aircraft sustainment
- Supports Department of the Navy readiness
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a niche but vital part of the broader aerospace and defense industry. Spending benchmarks for sustainment of specialized military aircraft can vary widely based on system complexity and age.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost creep. The Department of the Navy should provide a robust justification for the lack of competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competition.
- Cost Plus Fixed Fee structure may incentivize higher costs.
- Potential for price escalation without competitive pressure.
- Limited transparency on specific sustainment needs.
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 $13.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. HAWKEYE SUSTAINMENT
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 $13.8 million.
What is the period of performance?
Start: 2024-05-04. End: 2026-04-30.
What is the specific justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure fair and reasonable pricing, the contracting agency should conduct a thorough price analysis, potentially using historical data, cost breakdowns, and market research, even in a sole-source scenario. Independent government cost estimates are also crucial.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this sustainment effort?
The primary risk with CPFF contracts is that the contractor is reimbursed for all allowable costs plus a fixed fee. This structure incentivizes cost incurrence rather than cost control, potentially leading to expenditures exceeding initial estimates. Effective government oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks and ensure value for taxpayer money.
How does this sustainment contract contribute to the overall operational effectiveness and readiness of the HAWKEYE aircraft fleet?
Sustainment contracts are critical for maintaining the operational readiness of complex military assets like the HAWKEYE aircraft. They ensure that necessary parts, maintenance, and technical support are available, directly impacting the fleet's ability to perform its intended missions. Without adequate sustainment, aircraft availability decreases, mission capability is compromised, and long-term operational effectiveness suffers.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment 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: 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: $40,474,846
Exercised Options: $15,846,770
Current Obligation: $13,818,860
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $74,334,139
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: 2024-05-04
Current End Date: 2026-04-30
Potential End Date: 2029-04-30 00:00:00
Last Modified: 2025-09-25
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