DoD Awards Northrop Grumman $582.7M for E-130J Aircraft Parts Manufacturing
Contract Overview
Contract Amount: $582,700,000 ($582.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-12-18
End Date: 2024-12-19
Contract Duration: 1 days
Daily Burn Rate: $582.7M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: E130J ENGINEERING AND MANUFACTURING DEVELOPMENT (EMD)
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $582.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: E130J ENGINEERING AND MANUFACTURING DEVELOPMENT (EMD) Key points: 1. Significant contract value for specialized aircraft parts. 2. Northrop Grumman is a major defense contractor, indicating established capabilities. 3. Potential for cost overruns given the 'Cost Plus Incentive Fee' structure. 4. The sector is critical for defense readiness and technological advancement.
Value Assessment
Rating: good
The contract value of $582.7 million is substantial for specialized aircraft parts. Benchmarking against similar EMD contracts for complex aerospace components would be necessary for a precise assessment, but the scale suggests a significant investment in development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing, though the 'Cost Plus Incentive Fee' structure allows for adjustments based on performance and cost targets.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense manufacturing, aiming for technological superiority. The incentive fee structure could lead to cost savings if performance targets are met efficiently.
Public Impact
Enhances U.S. Air Force's electronic warfare and special operations capabilities. Supports advanced manufacturing and high-tech jobs in Florida. Contributes to national security through modernization of aircraft platforms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee structure can lead to cost overruns if not managed tightly.
- Long-term sustainment costs for E-130J platform are not detailed.
- Reliance on a single contractor for critical component manufacturing.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical need for advanced electronic warfare capabilities.
- Investment in domestic manufacturing and technological innovation.
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 driven by military modernization programs and the need for advanced technological capabilities, often involving significant R&D investment.
Small Business Impact
While the prime contractor is Northrop Grumman, a large corporation, the contract details do not specify subcontracting goals for small businesses. Further investigation into the subcontracting plan would be needed to assess small business participation.
Oversight & Accountability
The Department of the Navy's acquisition process, including full and open competition, provides a level of oversight. However, the 'Cost Plus Incentive Fee' structure requires diligent monitoring by the agency to ensure cost efficiency and prevent undue escalation.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost overrun potential due to CPIF contract type.
- Lack of transparency on specific performance incentives.
- Dependency on a single large contractor.
- Potential for scope creep in EMD phase.
- Unclear long-term sustainment cost implications.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $582.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. E130J ENGINEERING AND MANUFACTURING DEVELOPMENT (EMD)
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 $582.7 million.
What is the period of performance?
Start: 2024-12-18. End: 2024-12-19.
What are the specific performance metrics tied to the incentive fee, and how will they be measured to ensure optimal value for the investment?
The specific performance metrics for the incentive fee are not detailed in the provided data. Typically, these metrics relate to achieving cost targets, meeting production schedules, and adhering to quality standards. The Department of the Navy's contracting officers will be responsible for monitoring Northrop Grumman's progress against these predefined metrics throughout the contract duration to determine the final fee.
What is the projected lifecycle cost of the E-130J program, and how does this EMD contract fit into the overall budget and long-term sustainment strategy?
The provided data focuses solely on the Engineering and Manufacturing Development (EMD) phase, with a value of $582.7 million. Information regarding the total lifecycle cost, including subsequent production, deployment, and sustainment phases, is not available. A comprehensive understanding of the E-130J program's long-term financial commitment requires further analysis of its full acquisition and operational roadmap.
How does the technological advancement achieved through this EMD contract compare to potential alternative solutions or emerging technologies in the electronic warfare domain?
This EMD contract aims to develop and manufacture specific components for the E-130J, likely addressing a defined capability gap. A thorough assessment of its technological advancement would require comparing the resulting capabilities against the evolving threat landscape and alternative solutions, including those from competitors or emerging technologies that might offer different approaches to electronic warfare.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001922R0049
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $6,127,563,045
Exercised Options: $3,459,276,000
Current Obligation: $582,700,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-12-18
Current End Date: 2024-12-19
Potential End Date: 2031-01-10 00:00:00
Last Modified: 2025-12-12
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