DoD awards Northrop Grumman $36.3M for aircraft structural component repair, extending contract to 2010

Contract Overview

Contract Amount: $24,774,645 ($24.8M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2004-12-20

End Date: 2010-09-30

Contract Duration: 2,110 days

Daily Burn Rate: $11.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200511!000144!5700!FA8102!OC-ALC/LAD !F3365799D0028 !A!N! !Y!SD46 ! !20041220!20051231!362686958!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!3520 EAST AVENUE M !PALMDALE !CA!93550!55000!017!40!OKLAHOMA CITY !CANADIAN !OKLAHOMA !+000017850252!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !811219!E! !5!B!S! ! ! !20200930!B! ! !N!Z!D!N!U!1!001!N!1A!Z!Y!Z! ! !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 $24.8 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: 200511!000144!5700!FA8102!OC-ALC/LAD !F3365799D0028 !A!N! !Y!SD46 ! !20041220!20051231!362686958!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!3520 EAST AVENUE M !PALMDALE !CA!93550!55000!017!40!OKLAHOMA CITY !CANA… Key points: 1. Contract awarded to Northrop Grumman Systems Corp for aircraft structural component repair. 2. The contract value is $36.3 million, with an estimated value of $24.8 million. 3. This is a delivery order under a larger contract, indicating a specific need. 4. The sector is Aircraft Manufacturing, with a Product Service Code of 'MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS'.

Value Assessment

Rating: good

The contract value is $36.3 million, with an estimated value of $24.8 million. The awarded amount is higher than the estimated value, suggesting potential cost increases or scope adjustments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded as 'NOT COMPETED', indicating a sole-source or limited competition scenario. This approach may limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer funds.

Public Impact

Supports critical aircraft maintenance for the Department of Defense. Ensures the operational readiness of Air Force aircraft. Funds a major defense contractor, impacting the aerospace industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Contract duration extends significantly, requiring ongoing oversight.
Potential for cost overruns given the contract type (Cost Plus Fixed Fee).

Positive Signals

Addresses a critical need for aircraft structural repair.
Awarded to an established defense contractor with relevant expertise.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically for the maintenance and repair of structural components. The total obligated amount of $36.3 million is significant for this type of service.

Small Business Impact

This contract was awarded to a large business, Northrop Grumman Systems Corp. There is no indication of small business participation in this specific award.

Oversight & Accountability

The contract is a delivery order under a larger IDIQ, suggesting it's part of an existing framework. Oversight should focus on the justification for sole-source awards and adherence to the Cost Plus Fixed Fee terms.

Related Government Programs

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

Risk Flags

Sole-source award.
Cost Plus Fixed Fee contract type.
Long contract duration.
Award value exceeds estimated value.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to NORTHROP GRUMMAN SYSTEMS CORP. 200511!000144!5700!FA8102!OC-ALC/LAD !F3365799D0028 !A!N! !Y!SD46 ! !20041220!20051231!362686958!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!3520 EAST AVENUE M !PALMDALE !CA!93550!55000!017!40!OKLAHOMA CITY !CANADIAN !OKLAHOMA !+000017850252!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1C!OTHER AIRCRAFT EQUIPMENT !000 !* !811219!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 $24.8 million.

What is the period of performance?

Start: 2004-12-20. End: 2010-09-30.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED'. A detailed review of the contract file would be necessary to ascertain the specific justification, which could include factors like unique capabilities, urgent need, or lack of viable alternatives. Understanding this justification is crucial for assessing the necessity of the sole-source approach.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control for this aircraft repair contract?

The CPFF structure allows the contractor to recover all allowable costs plus a fixed fee. While it incentivizes cost control by fixing the fee, it shifts the risk of cost overruns to the government. Effective oversight is essential to ensure costs are reasonable and allowable, and that the fixed fee remains appropriate throughout the contract's life.

What is the long-term strategic value of this contract for the Air Force's aircraft readiness?

This contract directly supports the maintenance and repair of critical aircraft structural components, which is vital for ensuring the operational readiness and safety of the Air Force's fleet. The extended duration suggests a sustained need for these services, contributing to the longevity and effectiveness of key military assets.

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: COST PLUS FIXED FEE (U)

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: F3365799D0028

IDV Type: IDC

Timeline