DoD awards Northrop Grumman $362.7M for aircraft structural component repair, 2005-2007

Contract Overview

Contract Amount: $69,904,256 ($69.9M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2005-01-01

End Date: 2007-03-01

Contract Duration: 789 days

Daily Burn Rate: $88.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200505!000105!5700!FA8102!OC-ALC/LAD !F3365799D0028 !A!N! !Y!SD44 ! !20050101!20070301!362686958!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!3520 EAST AVENUE M !PALMDALE !CA!93550!55156!037!06!PALMDALE !LOS ANGELES !CALIFORNIA!+000007331283!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !336413!E! !5!B!S! ! ! !20200930!B! ! !N!Z!D!Y!J!1!001!N!1G!Z!Y!F! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $69.9 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: 200505!000105!5700!FA8102!OC-ALC/LAD !F3365799D0028 !A!N! !Y!SD44 ! !20050101!20070301!362686958!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!3520 EAST AVENUE M !PALMDALE !CA!93550!55156!037!06!PALMDALE !LOS … Key points: 1. Significant contract value for aircraft structural component maintenance. 2. Sole-source award to Northrop Grumman, raising competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on aircraft structural components falls within the Defense sector.

Value Assessment

Rating: questionable

The contract value of $362.7 million over two years for aircraft structural component repair appears substantial. Without comparable contract data or a competitive bidding process, it's difficult to definitively assess if this pricing is optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits price discovery and potentially leads to higher costs for the government compared to a full and open competition.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for aircraft structural component repair services.

Public Impact

Ensures continued operational readiness of Air Force aircraft by maintaining structural integrity. Supports a major defense contractor, contributing to jobs in California. Highlights the reliance on specific contractors for specialized aircraft maintenance needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Contract duration is relatively long for a sole-source award.
Lack of detailed performance metrics in provided data.

Positive Signals

Addresses critical maintenance needs for aircraft structural components.
Contract awarded to a known entity with established capabilities.

Sector Analysis

This contract falls within the Defense sector, specifically for the maintenance and repair of aircraft structural components. Spending benchmarks in this area can vary widely based on aircraft type and complexity of repairs.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this sole-source contract. The award was made to a large corporation, Northrop Grumman Systems Corp.

Oversight & Accountability

The 'NOT COMPETED' designation suggests a waiver of standard competitive procedures. Oversight would focus on the justification for the sole-source award and the reasonableness of the negotiated price.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.9 million to NORTHROP GRUMMAN SYSTEMS CORP. 200505!000105!5700!FA8102!OC-ALC/LAD !F3365799D0028 !A!N! !Y!SD44 ! !20050101!20070301!362686958!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!3520 EAST AVENUE M !PALMDALE !CA!93550!55156!037!06!PALMDALE !LOS ANGELES !CALIFORNIA!+000007331283!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !336413!E! !5!B!S! ! ! !202

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORP.

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 $69.9 million.

What is the period of performance?

Start: 2005-01-01. End: 2007-03-01.

What was the specific justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services, or in cases of urgent need. Further investigation into the contract file would be required to determine the exact rationale.

How does the cost of this contract compare to similar aircraft structural repair contracts awarded competitively?

Without access to a benchmark of competitively awarded contracts for similar aircraft structural repairs, a direct cost comparison is not possible. The sole-source nature of this award makes it inherently difficult to assess its cost-effectiveness against market alternatives. A thorough analysis would require identifying comparable contracts.

What are the potential risks associated with a sole-source contract for critical aircraft maintenance?

Sole-source contracts carry risks of inflated pricing due to the absence of competition, potential for reduced innovation, and a lack of vendor accountability if performance standards are not rigorously monitored. For critical aircraft maintenance, delays or subpar quality could impact operational readiness and safety.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 3520 E AVE M, PALMDALE, CA, 93550

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: F3365799D0028

IDV Type: IDC

Timeline