DoD's $9.87M contract for logistics support services awarded to Northrop Grumman, highlighting R&D in physical sciences
Contract Overview
Contract Amount: $9,873,747 ($9.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2006-09-14
End Date: 2012-06-30
Contract Duration: 2,116 days
Daily Burn Rate: $4.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: R&D
Official Description: 200612!002139!5700!FA8103!OC-ALC/LID !FA822205D0008 !A!N! !N!SD01 ! !20060914!20100930!059069211!008255408!016435559!N!NORTHROP GRUMMAN TECHNICAL SER!2411 DULLES CORNER PARK # !HERNDON !VA!20171!36648!059!51!HERNDON !FAIRFAX !VIRGINIA !+000003225000!N!N!000009300000!R706!LOGISTICS SUPPORT SERVICES !A1C!OTHER AIRCRAFT EQUIPMENT !000 !NOT DISCERNABLE !336413!E! !3!A!S! ! ! !99990909!B! ! !N!Z!D!U!Y!1!001!N!1G!A!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $9.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200612!002139!5700!FA8103!OC-ALC/LID !FA822205D0008 !A!N! !N!SD01 ! !20060914!20100930!059069211!008255408!016435559!N!NORTHROP GRUMMAN TECHNICAL SER!2411 DULLES CORNER PARK # !HERNDON !VA!20171!36648!059!51!HERNDON !FAIR… Key points: 1. Contract value of $9.87M for logistics support services. 2. Awarded to Northrop Grumman, a major defense contractor. 3. Competition was full and open, suggesting a competitive bidding process. 4. Contract duration of over 4 years indicates a significant, long-term need. 5. Service type is 'Time and Materials', which can pose cost control challenges. 6. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 7. Geographic location of the contractor is Herndon, Virginia.
Value Assessment
Rating: fair
The contract value of $9.87M for logistics support services over approximately 4 years appears reasonable given the nature of the work. However, without specific benchmarks for similar 'Other Aircraft Equipment' logistics support, a precise value-for-money assessment is difficult. The 'Time and Materials' pricing structure, while flexible, carries inherent risks of cost overruns if not closely managed. Comparing this to other DoD contracts for similar services would provide better context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition', indicating that all responsible sources were permitted to submit bids. This suggests a healthy level of competition, which typically drives better pricing and service offerings. The number of bidders is not specified, but the 'full and open' designation implies multiple interested parties participated.
Taxpayer Impact: A competitive bidding process generally benefits taxpayers by encouraging lower prices and higher quality services, as contractors vie to win the award.
Public Impact
The Department of Defense benefits from enhanced logistics support for aircraft equipment. Services delivered include research and development related to physical, engineering, and life sciences. The geographic impact is primarily centered around the contractor's location in Herndon, Virginia, and potentially the operational locations of the supported aircraft. Workforce implications include employment for personnel at Northrop Grumman involved in logistics and R&D activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost escalation due to 'Time and Materials' pricing.
- Lack of specific details on performance metrics and success criteria.
- Limited insight into the exact nature of the R&D activities.
- Contract duration might be extended, increasing overall cost exposure.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Contractor, Northrop Grumman, is a well-established defense industry player.
- Clear identification of the service category (logistics support) and R&D focus.
- Contract has defined start and end dates, providing a clear period of performance.
Sector Analysis
This contract falls within the broader aerospace and defense sector, specifically focusing on logistics support and research and development. The market for defense logistics services is substantial, with significant government spending allocated annually. Northrop Grumman is a major player in this space. Comparable spending benchmarks would involve analyzing other contracts for similar aircraft equipment support and R&D services across the DoD.
Small Business Impact
The contract does not indicate any specific small business set-aside provisions, nor is it explicitly stated that small businesses are involved as subcontractors. Given the prime contractor is Northrop Grumman, a large corporation, the focus is likely on prime contract performance rather than direct small business utilization unless specified in subcontracting plans not detailed here.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force, given the awarding agency (OC-ALC/LID). Accountability measures would be tied to the contract's performance requirements and the 'Time and Materials' reporting structure. Transparency is facilitated by the contract award data, but detailed operational oversight and Inspector General jurisdiction would depend on the specific nature of the services and any associated risks identified.
Related Government Programs
- Defense Logistics Agency (DLA) contracts
- Air Force sustainment and maintenance contracts
- Aerospace R&D contracts
- Government contracting for aircraft parts and services
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of specific details on performance metrics.
- Broad description of 'Other Aircraft Equipment' limits scope clarity.
Tags
department-of-defense, department-of-the-air-force, northrop-grumman, logistics-support-services, research-and-development, other-aircraft-equipment, time-and-materials, full-and-open-competition, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200612!002139!5700!FA8103!OC-ALC/LID !FA822205D0008 !A!N! !N!SD01 ! !20060914!20100930!059069211!008255408!016435559!N!NORTHROP GRUMMAN TECHNICAL SER!2411 DULLES CORNER PARK # !HERNDON !VA!20171!36648!059!51!HERNDON !FAIRFAX !VIRGINIA !+000003225000!N!N!000009300000!R706!LOGISTICS SUPPORT SERVICES !A1C!OTHER AIRCRAFT EQUIPMENT !000 !NOT DISCERNABLE !336413!E! !3!A!S! ! ! !999
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 Air Force).
What is the total obligated amount?
The obligated amount is $9.9 million.
What is the period of performance?
Start: 2006-09-14. End: 2012-06-30.
What specific types of 'Other Aircraft Equipment' are covered under this logistics support contract?
The provided data does not specify the exact types of 'Other Aircraft Equipment' covered. The 'LOGISTICS SUPPORT SERVICES' and 'OTHER AIRCRAFT EQUIPMENT' descriptions are broad categories. Further investigation into the contract's Statement of Work (SOW) or detailed exhibits would be necessary to identify the specific equipment. This could range from components of various aircraft platforms to specialized support systems, depending on the Air Force's requirements at the time of award.
How does the 'Time and Materials' pricing structure compare to fixed-price contracts for similar logistics support services?
Time and Materials (T&M) contracts offer flexibility, allowing the government to pay for the actual labor hours and material costs incurred. This can be advantageous when the scope of work is uncertain or evolves. However, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, where the contractor assumes more risk for cost control. For predictable, well-defined logistics tasks, fixed-price contracts often provide better cost certainty and value for taxpayers. The suitability of T&M here likely depends on the R&D component and the evolving nature of the support required.
What is Northrop Grumman's track record with similar DoD logistics support and R&D contracts?
Northrop Grumman is a major defense contractor with extensive experience in logistics, sustainment, and research and development across various platforms. While this specific contract value is $9.87M, the company handles significantly larger programs. Their track record generally includes successful execution of complex projects, though like any large contractor, they may have faced scrutiny on specific contracts regarding cost, schedule, or performance. A detailed review of their contract history with the DoD, particularly for similar service types and aircraft, would provide a more granular assessment.
What were the key performance indicators (KPIs) or success metrics for this contract?
The provided summary data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. Typically, such metrics would be detailed in the contract's Statement of Work (SOW) and could include factors like response time for support requests, availability of parts, successful completion of R&D milestones, or adherence to delivery schedules. Without access to the SOW, assessing the contractor's performance against defined objectives is not possible from this data alone.
How has spending on logistics support services for 'Other Aircraft Equipment' evolved within the Department of the Air Force over the past decade?
The provided data is for a single contract awarded in 2006. To analyze spending trends, a broader dataset encompassing multiple contracts over time would be required. Generally, spending on logistics support and R&D for aircraft equipment is influenced by factors such as fleet modernization, operational tempo, aging aircraft sustainment needs, and evolving technological requirements. Analyzing historical spending patterns would involve aggregating data for similar contract types, service descriptions, and agencies over several fiscal years.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 12900 FEDERAL SYSTEMS PARK DR, FAIRFAX, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA822205D0008
IDV Type: IDC
Timeline
Start Date: 2006-09-14
Current End Date: 2012-06-30
Potential End Date: 2012-06-30 00:00:00
Last Modified: 2013-10-18
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