DoD Awards Northrop Grumman $171M for Aircraft Parts, Sole-Source Contract
Contract Overview
Contract Amount: $17,122,800 ($17.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-12-30
End Date: 2026-11-03
Contract Duration: 673 days
Daily Burn Rate: $25.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PAM,AIRCRAFT,MATERI
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $17.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: PAM,AIRCRAFT,MATERI Key points: 1. Significant award to a major defense contractor. 2. Sole-source nature raises questions about price discovery. 3. Long contract duration suggests ongoing need. 4. Focus on aircraft parts indicates a critical supply chain component.
Value Assessment
Rating: questionable
The contract value of $171.2M over approximately two years is substantial. Without competitive bidding, it's difficult to benchmark against similar contracts to assess if the pricing is optimal for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in the government paying a premium for these aircraft parts, impacting overall defense spending efficiency.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on this sole-source provider for critical aircraft components. The long-term nature of the contract suggests sustained demand for these parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Supports critical defense needs
- Long-term contract provides stability
Sector Analysis
The aerospace and defense sector is characterized by long development cycles and significant government contracts. Awards like this are common, but competitive sourcing is crucial for cost efficiency.
Small Business Impact
This contract was awarded to a large prime contractor and does not indicate any specific benefit or set-aside for small businesses.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer dollars. Robust oversight is needed to confirm the necessity of this procurement approach.
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.
- Potential for overpayment due to no price discovery.
- Long contract duration increases exposure to price fluctuations.
- No indication of small business participation.
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 $17.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. PAM,AIRCRAFT,MATERI
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 $17.1 million.
What is the period of performance?
Start: 2024-12-30. End: 2026-11-03.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives. Without a competitive process, it is imperative for the agency to thoroughly document why competition was not feasible and to ensure the negotiated price reflects fair and reasonable value.
What are the potential risks associated with a sole-source contract of this magnitude?
The primary risk is paying an inflated price due to the absence of competitive pressure. Other risks include potential complacency from the contractor regarding innovation or service quality, and a lack of transparency in cost build-ups. This can lead to inefficient use of taxpayer funds and a reduced ability to leverage market competition for better terms.
How will the government ensure the effectiveness and value of these aircraft parts over the contract duration?
Effectiveness and value will be ensured through stringent performance metrics, quality assurance inspections, and potentially post-award audits. The government should maintain clear communication channels with the contractor to address any issues promptly and verify that the delivered parts meet all specifications and operational requirements throughout the contract's life.
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
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: $17,122,800
Exercised Options: $17,122,800
Current Obligation: $17,122,800
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $13,610,576
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0038324DBH01
IDV Type: IDC
Timeline
Start Date: 2024-12-30
Current End Date: 2026-11-03
Potential End Date: 2026-11-03 00:00:00
Last Modified: 2025-11-03
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