DoD Awards Northrop Grumman $36.4M for SPARE E2D ROTODOME Parts
Contract Overview
Contract Amount: $36,441,529 ($36.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-07-01
End Date: 2027-03-29
Contract Duration: 1,001 days
Daily Burn Rate: $36.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SPARE E2D ROTODOME
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $36.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SPARE E2D ROTODOME Key points: 1. Significant contract value for specialized aircraft components. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on critical defense hardware within the aerospace sector.
Value Assessment
Rating: questionable
The contract value of $36.4M for a specific aircraft part appears substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to similar specialized aerospace components.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating no competition. This method limits price discovery and may result in less favorable terms for the government.
Taxpayer Impact: The lack of competition could lead to taxpayers potentially overpaying for these essential aircraft parts.
Public Impact
Ensures continued operational readiness for E-2D Hawkeye aircraft. Supports a key defense contractor, potentially impacting jobs. Highlights reliance on specific manufacturers for specialized defense equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Supports critical defense capability
- Long-term contract duration
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically for aircraft parts. Spending benchmarks for such specialized components are hard to establish due to unique requirements and limited suppliers.
Small Business Impact
The awardee is Northrop Grumman Systems Corporation, a large business. There is no indication that small businesses were involved in this specific sole-source contract.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and necessity. The Department of the Navy is responsible for managing this contract and verifying its value.
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 price gouging without competitive pressure.
- Lack of transparency in pricing justification.
- Dependency on a single contractor for critical parts.
- No small business participation noted.
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 $36.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SPARE E2D ROTODOME
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 $36.4 million.
What is the period of performance?
Start: 2024-07-01. End: 2027-03-29.
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 involves unique capabilities, proprietary technology, or lack of viable alternatives. The Department of the Navy should have conducted a price analysis, potentially using historical data or cost breakdowns from the contractor, to determine if the price was fair and reasonable, despite the absence of competition.
What is the risk of relying on a single supplier for critical aircraft components like the SPARE E2D ROTODOME?
The primary risk is supply chain vulnerability. Dependence on a sole source can lead to production delays, price escalations, and limited options if the supplier faces financial difficulties or production issues. This can impact aircraft readiness and operational capabilities.
How does this contract contribute to the overall effectiveness and readiness of the E-2D Hawkeye fleet?
This contract is essential for maintaining the operational readiness of the E-2D Hawkeye fleet by ensuring the availability of critical rotodome components. The timely delivery of these parts directly supports flight schedules, training, and mission execution, thereby contributing to the overall effectiveness of naval aviation assets.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
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: $36,441,529
Exercised Options: $36,441,529
Current Obligation: $36,441,529
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $-20,394,652
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038322GS501
IDV Type: BOA
Timeline
Start Date: 2024-07-01
Current End Date: 2027-03-29
Potential End Date: 2029-03-31 00:00:00
Last Modified: 2025-05-29
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