DoD Awards Northrop Grumman $37.9M for WING OUTER PANEL AS, Exceeding Benchmark
Contract Overview
Contract Amount: $37,979,460 ($38.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2015-02-12
End Date: 2017-11-07
Contract Duration: 999 days
Daily Burn Rate: $38.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: WING OUTER PANEL AS
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32902
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $38.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: WING OUTER PANEL AS Key points: 1. High contract value for a specific aircraft component. 2. Sole-source award to a major defense contractor. 3. Potential risk due to lack of competition. 4. Spending aligns with the aerospace and defense sector.
Value Assessment
Rating: questionable
The contract value of $37.9M for WING OUTER PANEL AS appears high when compared to the benchmark of $38.01M, suggesting potential overpricing or a lack of competitive pressure driving down costs.
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 significantly limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The lack of competition in this sole-source award raises concerns about taxpayer value, as the government may be paying more than necessary for the WING OUTER PANEL AS.
Public Impact
Taxpayers may be overpaying for critical aircraft components due to a lack of competitive bidding. Reliance on a single contractor for essential parts can create supply chain vulnerabilities. The significant contract value highlights the substantial investment in defense aerospace manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Potential overpricing
- Lack of competition
Positive Signals
- Award to established contractor
- Specific component for aircraft
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically for aircraft components. Spending in this area is typically high due to the specialized nature of production and stringent quality requirements.
Small Business Impact
The award went to Northrop Grumman Systems Corporation, a large defense contractor, with no indication of small business subcontracting. This suggests limited direct benefit to small businesses from this specific contract.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential cost overruns. Oversight should focus on validating the necessity of the sole-source justification and exploring future competitive opportunities.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for overpricing due to lack of competition.
- High value contract for a single component.
- No indication of small business participation.
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. WING OUTER PANEL AS
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 (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $38.0 million.
What is the period of performance?
Start: 2015-02-12. End: 2017-11-07.
What is the justification for the sole-source award of the WING OUTER PANEL AS to Northrop Grumman?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or the unavailability of alternatives. Without specific documentation, it's difficult to ascertain the precise reason, but it implies that only Northrop Grumman could fulfill the requirement at the time of award.
What is the risk associated with a sole-source contract for critical aircraft components?
The primary risk of a sole-source contract for critical components is the absence of competitive pressure, which can lead to inflated prices and reduced innovation. It also creates a dependency on a single supplier, potentially leading to supply chain disruptions if that supplier faces issues.
How does this contract contribute to the overall effectiveness of the Defense Logistics Agency's mission?
This contract supports the DLA's mission by ensuring the availability of essential aircraft components, contributing to the readiness and operational capability of military aircraft. However, the effectiveness is tempered by concerns about the cost efficiency and competitive landscape of the procurement.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 600 GRUMMAN RD WEST, 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: $37,979,460
Exercised Options: $37,979,460
Current Obligation: $37,979,460
Subaward Activity
Number of Subawards: 310
Total Subaward Amount: $1,014,915,910
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPM4AX12D9401
IDV Type: IDC
Timeline
Start Date: 2015-02-12
Current End Date: 2017-11-07
Potential End Date: 2017-11-07 00:00:00
Last Modified: 2018-04-19
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