DoD Awards Northrop Grumman $64.3M for E-2 Hawkeye Support
Contract Overview
Contract Amount: $64,258,640 ($64.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-06-30
End Date: 2026-12-31
Contract Duration: 2,375 days
Daily Burn Rate: $27.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PSE IN SUPPORT OF THE E-2 ADVANCED HAWKEYE
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $64.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: PSE IN SUPPORT OF THE E-2 ADVANCED HAWKEYE Key points: 1. Significant contract value for specialized aircraft support. 2. Sole-source award to Northrop Grumman, a major defense contractor. 3. Potential risk due to lack of competition. 4. Spending concentrated in the Defense sector, specifically aircraft manufacturing.
Value Assessment
Rating: fair
The contract value of $64.3M for E-2 Hawkeye support appears substantial. Without specific per-unit cost data or benchmarks for similar support contracts, a precise value assessment is difficult. However, the duration and scope suggest a significant investment.
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 approach limits price discovery and potentially leads to higher costs compared to a competitive bidding process. The justification for sole-source is not provided.
Taxpayer Impact: The lack of competition raises concerns about taxpayer value. Without competitive pressure, the government may not be securing the most cost-effective solution for E-2 Hawkeye support.
Public Impact
Ensures continued operational readiness of the E-2 Hawkeye fleet. Supports critical intelligence, surveillance, and reconnaissance capabilities. Impacts the defense industrial base and specialized manufacturing jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for cost overruns
Positive Signals
- Supports critical defense asset
- Long-term contract duration
- Experienced contractor
Sector Analysis
This contract falls within the Defense sector, specifically supporting the E-2 Hawkeye aircraft. Spending in this area is typical for maintaining advanced military platforms. Benchmarks for similar sole-source support contracts are difficult to ascertain without more data.
Small Business Impact
The prime contractor is Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award, which is common for large, sole-source defense contracts.
Oversight & Accountability
Oversight is likely managed by the Defense Contract Management Agency (DCMA). The sole-source nature of the award warrants close scrutiny to ensure fair pricing and effective performance, particularly given the significant contract value.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in justification.
- Dependency on a single contractor.
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 $64.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. PSE IN SUPPORT OF THE E-2 ADVANCED HAWKEYE
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $64.3 million.
What is the period of performance?
Start: 2020-06-30. End: 2026-12-31.
What is the justification for awarding this contract sole-source?
The justification for a sole-source award is crucial for understanding the necessity of bypassing the competitive bidding process. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent need. Without this information, it's difficult to assess if the government received fair value.
What are the projected cost savings if this contract had been competed?
Estimating cost savings from a hypothetical competition is challenging without detailed cost breakdowns and market analysis. However, competitive bidding generally drives down prices by 10-30% compared to sole-source awards. The lack of competition here likely means taxpayers are paying a premium for E-2 Hawkeye support.
How will the performance of Northrop Grumman be monitored to ensure effectiveness?
Performance monitoring will likely be conducted by the Defense Contract Management Agency (DCMA) through contract surveillance, quality assurance checks, and milestone tracking. Regular reviews and reporting requirements will ensure the contractor meets delivery schedules and performance standards for the E-2 Hawkeye support.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT/REPAIR SHOP EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6833519R0048
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: $64,258,640
Exercised Options: $64,258,640
Current Obligation: $64,258,640
Subaward Activity
Number of Subawards: 635
Total Subaward Amount: $108,379,142
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: 2020-06-30
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-09-08
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)