DoD's $20.9M Northrop Grumman Contract for Aircraft Manufacturing Lacks Competition
Contract Overview
Contract Amount: $20,919,286 ($20.9M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2006-12-26
End Date: 2010-12-31
Contract Duration: 1,466 days
Daily Burn Rate: $14.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CY07 PBL CONTRACT DEPOT MAINTENANCE (CDM)
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550
Plain-Language Summary
Department of Defense obligated $20.9 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: CY07 PBL CONTRACT DEPOT MAINTENANCE (CDM) Key points: 1. Contract awarded to Northrop Grumman Systems Corp for $20.9M. 2. Focuses on Aircraft Manufacturing (NAICS 336411). 3. Significant duration of 1466 days. 4. Awarded by the Department of the Air Force. 5. No small business participation noted.
Value Assessment
Rating: questionable
The contract's value of $20.9M over nearly four years requires careful scrutiny, especially given the lack of competition. Benchmarking against similar depot maintenance contracts for aircraft manufacturing is difficult without competitive data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. The absence of competition likely prevented price discovery through market forces, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible value for this significant expenditure.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The long duration suggests a critical, ongoing need for these services. Lack of small business involvement limits opportunities for smaller enterprises in this sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- No small business participation
Positive Signals
- Clear contract award for essential services
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically for depot maintenance. Spending in this area is critical for maintaining military readiness, but competitive sourcing is generally preferred to ensure cost-effectiveness.
Small Business Impact
The contract data indicates no small business participation (SB=false). This suggests that opportunities for small businesses in aircraft depot maintenance were not pursued or were deemed unsuitable for this specific requirement.
Oversight & Accountability
The 'ST' (Status) code 'CA' (Contract Award) suggests this is a completed award. Further oversight would involve reviewing the performance and final cost against the initial award, especially given the sole-source nature.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Potential for inflated pricing
- Lack of small business participation
- Long contract duration without clear competitive review
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.9 million to NORTHROP GRUMMAN SYSTEMS CORP. CY07 PBL CONTRACT DEPOT MAINTENANCE (CDM)
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 $20.9 million.
What is the period of performance?
Start: 2006-12-26. End: 2010-12-31.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of available sources. Without specific documentation, it's difficult to ascertain the precise reason. However, the absence of competition inherently limits the government's ability to explore alternative providers and potentially secure better pricing or innovative solutions.
How does the final cost compare to the estimated cost or benchmarks for similar sole-source contracts?
Comparing the final cost of $20.9M to benchmarks for similar sole-source contracts is challenging without access to proprietary pricing data or detailed cost breakdowns. However, the inherent lack of competition suggests a higher risk of cost overruns or inflated pricing compared to a competitively awarded contract. A thorough audit would be needed to assess value for money.
What measures were in place to ensure performance and quality given the lack of competitive pressure?
While competition drives performance through market incentives, sole-source contracts rely on robust contract management and oversight. This includes clearly defined performance standards, quality assurance surveillance plans (QASPs), and regular progress reviews. The Department of the Air Force would have been responsible for monitoring Northrop Grumman's adherence to contract terms and ensuring the required level of service was met.
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
Financial Breakdown
Contract Ceiling: $23,188,947
Exercised Options: $23,188,947
Current Obligation: $20,919,286
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3365799D0028
IDV Type: IDC
Timeline
Start Date: 2006-12-26
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2018-10-26
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