DoD Awards Northrop Grumman $33M for Aircraft Parts, Lacking Competition
Contract Overview
Contract Amount: $32,958,618 ($33.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-09-13
End Date: 2023-07-31
Contract Duration: 1,782 days
Daily Burn Rate: $18.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: OTPS 1 COMM 30 W
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $33.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: OTPS 1 COMM 30 W Key points: 1. Significant contract value of $33.96 million awarded. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Long contract duration of 1782 days (approx. 5 years). 4. Focus on aircraft parts manufacturing within the defense sector.
Value Assessment
Rating: questionable
The award value of $33.96 million for aircraft parts needs comparison against similar contracts. Without competitive bidding, it's difficult to ascertain if this price represents fair market value.
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 lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying a premium for these aircraft parts.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. The long-term nature of the contract locks the government into a single supplier. Potential for reduced innovation and quality without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- Established supplier (Northrop Grumman)
Sector Analysis
This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, a critical component of the defense industry. Spending in this area is substantial, and competitive pricing is crucial for efficient defense procurement.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large defense contractor. There is no indication that small businesses were involved in this specific award, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received the best possible value and that the justification for not competing was sound.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Long-term sole-source dependency
- Limited transparency in price discovery
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 $33.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. OTPS 1 COMM 30 W
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 $33.0 million.
What is the period of performance?
Start: 2018-09-13. End: 2023-07-31.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. Without further documentation, it's impossible to confirm the specific rationale. However, the absence of competition raises concerns about potential cost inefficiencies and missed opportunities for better pricing.
How does the unit cost of these aircraft parts compare to industry benchmarks, given the lack of competition?
Without competitive bids, establishing a precise unit cost benchmark is challenging. The government may have paid a higher price than if multiple suppliers had competed. A thorough post-award analysis comparing the awarded prices to similar parts procured competitively would be necessary to assess value for money.
What is the long-term risk associated with relying on a single supplier for critical aircraft parts over a five-year period?
The primary risk is the government's reduced leverage in price negotiations and potential vulnerability to supply chain disruptions if the sole supplier faces issues. It also limits opportunities for innovation and cost reduction that could arise from a competitive market. This dependency could impact readiness and operational costs.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001914R0023
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,958,618
Exercised Options: $32,958,618
Current Obligation: $32,958,618
Subaward Activity
Number of Subawards: 280
Total Subaward Amount: $30,977,800
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001915G0026
IDV Type: BOA
Timeline
Start Date: 2018-09-13
Current End Date: 2023-07-31
Potential End Date: 2023-07-31 00:00:00
Last Modified: 2025-04-15
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