Navy Awards Northrop Grumman $43.2M for Aircraft Component Modifications
Contract Overview
Contract Amount: $43,204,709 ($43.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-03-25
End Date: 2025-03-24
Contract Duration: 364 days
Daily Burn Rate: $118.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MODIFICATION OF EQUIPMENT- AIRCRAFT COMPONENTS AND ACCESSORIES
Place of Performance
Location: POINT MUGU NAWC, VENTURA County, CALIFORNIA, 93042
Plain-Language Summary
Department of Defense obligated $43.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MODIFICATION OF EQUIPMENT- AIRCRAFT COMPONENTS AND ACCESSORIES Key points: 1. Significant contract value of $43.2 million for aircraft component modifications. 2. Sole-source award to Northrop Grumman Systems Corporation indicates limited competition. 3. Potential risk associated with a sole-source procurement, impacting price discovery. 4. Engineering services sector, with a focus on defense and aerospace components.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific details on the modifications and comparable contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This limits the government's ability to ensure the best possible price through market forces.
Taxpayer Impact: The sole-source nature may result in higher costs for taxpayers compared to a competitive procurement, as the government did not leverage multiple bids.
Public Impact
Impacts readiness and maintenance of naval aircraft through component upgrades. Supports a major defense contractor, potentially affecting supply chain stability. Taxpayer funds allocated for critical defense infrastructure and operational capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Cost Plus Fixed Fee contract type
- Lack of competition
Positive Signals
- Supports critical defense capabilities
- Long-term contract duration
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting the Department of the Navy's aircraft components. Defense sector spending on specialized engineering services is substantial, often involving complex modifications and upgrades.
Small Business Impact
The awardee, Northrop Grumman Systems Corporation, is a large business. There is no indication of small business participation in this specific contract award, which could be an area for future consideration.
Oversight & Accountability
The Department of Defense oversees this contract. Oversight will be crucial to manage costs under the CPFF structure and ensure the modifications meet technical requirements effectively.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Limited price competition due to sole-source award
- Dependency on a single contractor
- Lack of transparency in justification for sole-source
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. MODIFICATION OF EQUIPMENT- AIRCRAFT COMPONENTS AND ACCESSORIES
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 $43.2 million.
What is the period of performance?
Start: 2024-03-25. End: 2025-03-24.
What specific aircraft components are being modified, and what is the expected improvement in performance or lifespan?
The specific aircraft components are not detailed in the provided data. Understanding the exact nature of the modifications is crucial for assessing the value proposition. Improvements in performance, reliability, or lifespan would justify the investment and inform future procurement decisions for similar upgrades.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for the sole-source award is not provided. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. Investigating the rationale and whether alternatives were genuinely explored is key to ensuring fair and efficient use of taxpayer funds.
How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns and ensure fair pricing?
Managing a CPFF contract requires robust oversight to control costs. The government must closely monitor expenditures, contractor performance, and the reasonableness of costs incurred. Establishing clear milestones and performance metrics will be essential to incentivize efficiency and prevent the fixed fee from becoming disproportionate to the actual effort.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6893616R0069
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 925 OYSTER BAY RD, BETHPAGE, NY, 11714
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,199,744
Exercised Options: $44,199,744
Current Obligation: $43,204,709
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $303,432
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6893619D0007
IDV Type: IDC
Timeline
Start Date: 2024-03-25
Current End Date: 2025-03-24
Potential End Date: 2025-03-24 00:00:00
Last Modified: 2025-10-23
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