DoD Awards Northrop Grumman $171M for Aircraft Parts, Lacking Competition
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: 2026-10-28
Contract Duration: 667 days
Daily Burn Rate: $25.7K/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 single large contractor for critical aircraft components. 2. Lack of competition raises concerns about potential overpricing and reduced innovation. 3. The contract duration of 667 days suggests a substantial, ongoing need. 4. Focus on 'Other Aircraft Parts' indicates a broad scope within aviation support.
Value Assessment
Rating: questionable
The award value of $171.2M for aircraft parts is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for specialized aircraft components.
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 limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The absence of competition for a $171M contract means taxpayers may be paying a premium for these aircraft parts.
Public Impact
Military readiness could be impacted if parts are delayed or overpriced. Taxpayer funds are being allocated without competitive pressure, potentially reducing value. Reliance on a single contractor for critical components poses a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
Positive Signals
- Award to established defense contractor
- Supports critical aircraft parts
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is crucial for maintaining military aviation capabilities, but often involves high-value, specialized components.
Small Business Impact
The contract was awarded directly to Northrop Grumman Systems Corporation and does not indicate any subcontracting opportunities for small businesses. The sole-source nature further limits potential small business involvement.
Oversight & Accountability
The lack of competition for this significant award warrants further oversight to ensure the pricing is justified and that future procurements explore competitive options where feasible.
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 price competition.
- Potential for overpayment due to lack of market pressure.
- Long contract duration may mask inefficiencies.
- Limited transparency on specific parts and justification.
- Risk of vendor lock-in.
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: 2026-10-28.
What specific aircraft parts are being procured under this contract, and what is the justification for a sole-source award?
The contract specifies 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' (NAICS 336413). A detailed justification for the sole-source award is necessary to understand why competition was deemed impractical or impossible, potentially due to proprietary technology, unique capabilities, or urgent need.
How does the unit cost of these parts compare to industry benchmarks or previous contracts, given the lack of competition?
Without competitive bids, establishing a precise benchmark is challenging. An independent cost analysis by the agency or a review of historical pricing for similar components would be needed to assess if the $171.2 million award represents fair value. The absence of competition inherently raises the risk of inflated pricing.
What is the potential impact on long-term defense readiness and budget if sole-source contracts for critical parts become a trend?
A trend of sole-source contracts for critical parts could lead to reduced innovation, higher costs, and potential supply chain vulnerabilities. It may also stifle competition, making it harder for new or smaller companies to enter the market, ultimately impacting the DoD's ability to secure the best value and maintain readiness.
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: 6
Total Subaward Amount: $9,326,926
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: 2026-10-28
Potential End Date: 2026-10-28 00:00:00
Last Modified: 2025-11-12
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