DoD Awards Northrop Grumman $4.1M for Aircraft Parts, Ending April 2026
Contract Overview
Contract Amount: $4,089,028 ($4.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-11-28
End Date: 2026-04-05
Contract Duration: 128 days
Daily Burn Rate: $31.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DOOR,ACCESS,AIRCRAF
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $4.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DOOR,ACCESS,AIRCRAF Key points: 1. Significant contract value of $4.1M awarded to a major defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risk associated with reliance on a single contractor for critical aircraft parts. 4. Spending falls within the 'Other Aircraft Parts' manufacturing sector.
Value Assessment
Rating: good
The contract value of $4.1M for aircraft parts appears reasonable given the duration and the nature of the goods. Benchmarking against similar contracts for specialized aircraft components would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive bidding process likely resulted in a fair price, maximizing taxpayer value for the required aircraft parts.
Public Impact
Ensures continued availability of critical aircraft components for naval operations. Supports the defense industrial base and jobs within the aerospace manufacturing sector. Potential for follow-on contracts based on performance and future needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for sole-source follow-on contracts if this vendor proves indispensable.
- Dependence on a single supplier for critical parts could lead to supply chain vulnerabilities.
Positive Signals
- Awarded through full and open competition, indicating a competitive market.
- Clear delivery dates and contract duration provide predictability.
- Firm fixed price contract limits cost overruns.
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is crucial for maintaining military aviation readiness and technological superiority.
Small Business Impact
While the primary awardee is a large corporation, the contract may indirectly benefit small businesses through subcontracting opportunities within the aerospace supply chain.
Oversight & Accountability
The Department of the Navy's procurement process, including the use of full and open competition, is subject to standard oversight mechanisms to ensure fairness and value.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for supply chain disruption if Northrop Grumman faces production issues.
- Risk of price escalation in future contracts if competition diminishes.
- Dependence on specific parts could impact aircraft availability if not managed proactively.
- Lack of detailed information on part criticality limits risk assessment.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $4.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. DOOR,ACCESS,AIRCRAF
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 $4.1 million.
What is the period of performance?
Start: 2025-11-28. End: 2026-04-05.
What is the specific nature of these aircraft parts and their criticality to naval operations?
The specific nature of the 'DOOR,ACCESS,AIRCRAF' parts is not detailed. However, their procurement by the Department of the Navy suggests they are essential for the operational readiness and safety of naval aircraft. Understanding their criticality would inform the assessment of supply chain risks and the importance of ensuring a robust and reliable source.
How does the awarded price compare to industry benchmarks for similar aircraft components?
A direct comparison of the $4.1M award to industry benchmarks requires detailed specifications of the parts, their quantities, and quality standards. Without this granular data, it's difficult to definitively assess if the price represents optimal value. Further analysis would involve comparing unit costs and total contract value against publicly available data for comparable defense contracts.
What are the potential long-term implications of this contract on the broader aircraft parts market?
This contract, awarded through full and open competition, suggests a healthy market for these specific aircraft parts. It reinforces the position of Northrop Grumman in this segment. However, if this leads to significant investment by the contractor in specialized production, it could influence future market dynamics and potentially create barriers for smaller competitors in subsequent procurements.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: ONE HORNET WAY, EL SEGUNDO, CA, 90245
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: $4,089,028
Exercised Options: $4,089,028
Current Obligation: $4,089,028
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0038323GTQ01
IDV Type: BOA
Timeline
Start Date: 2025-11-28
Current End Date: 2026-04-05
Potential End Date: 2026-04-05 00:00:00
Last Modified: 2026-01-06
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