Navy Awards $73.25M Contract to Northrop Grumman for Aircraft Components
Contract Overview
Contract Amount: $73,250,000 ($73.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2006-04-28
End Date: 2007-12-31
Contract Duration: 612 days
Daily Burn Rate: $119.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200610!481289!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001906D0014 !A!N! !N!0001 ! !20060428!20071230!077652761!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!600 GRUMMAN RD WEST !BETHPAGE !NY!11714!06387!059!36!BETHPAGE !NASSAU !NEW YORK !+000073250000!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336411!E! !5!B!S! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1A!A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! !Y!1700!N00019!0001! !
Place of Performance
Location: BETHPAGE, NASSAU County, NEW YORK, 11714
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $73.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200610!481289!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001906D0014 !A!N! !N!0001 ! !20060428!20071230!077652761!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!600 GRUMMAN RD WEST !BETHPAGE !NY!11714!06387!059!36!BETHPAGE !NASS… Key points: 1. The contract is for MSL Aircraft Accessories and Components, with a total value of $73.25 million. 2. Northrop Grumman Systems Corporation is the sole awardee, indicating a lack of competition. 3. The contract was awarded as a Delivery Order under a larger contract, suggesting it's part of an existing relationship. 4. The sector is Defense, specifically Aircraft Manufacturing, a critical area for national security.
Value Assessment
Rating: fair
The contract value of $73.25 million for a 612-day duration appears reasonable for specialized aircraft components. However, without specific unit details or comparison to similar sole-source awards, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, awarded as a delivery order under an existing contract. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Ensures continued availability of critical aircraft components for the Navy. Supports a major defense contractor and its supply chain. Potential for increased costs due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to sole-source award
Positive Signals
- Ensures supply of critical components
- Supports established defense contractor
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is crucial for maintaining military readiness. Benchmarks for similar sole-source component contracts are difficult to ascertain without more specific data.
Small Business Impact
This award went to a large prime contractor, Northrop Grumman. There is no indication of subcontracting opportunities for small businesses within this specific delivery order, though the prime may engage them on other efforts.
Oversight & Accountability
As a sole-source award, oversight is crucial to ensure fair pricing and performance. The Navy's contracting officers are responsible for monitoring this delivery order against the parent contract's terms.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Lack of transparency on specific components and unit pricing.
- Potential for cost overruns without competitive pressure.
- Dependence on a single contractor for critical parts.
Tags
aircraft-manufacturing, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200610!481289!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001906D0014 !A!N! !N!0001 ! !20060428!20071230!077652761!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!600 GRUMMAN RD WEST !BETHPAGE !NY!11714!06387!059!36!BETHPAGE !NASSAU !NEW YORK !+000073250000!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1A!AIRFRAMES AND SPARES !000 !NOT DISCERNABLE !336411!E! !5!B!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 Navy).
What is the total obligated amount?
The obligated amount is $73.3 million.
What is the period of performance?
Start: 2006-04-28. End: 2007-12-31.
What was the justification for awarding this contract sole-source?
The provided data indicates the contract was a 'Delivery Order' under a pre-existing contract, and marked as 'NOT COMPETED'. The specific justification for not competing this particular order would typically be documented by the agency, potentially citing reasons like urgency, unique capabilities, or continuation of a previous effort where competition was already addressed.
How does the unit cost compare to similar aircraft components?
Without specific unit cost breakdowns or access to a database of comparable sole-source awards for similar aircraft accessories and components, it is impossible to provide a benchmark. The total award value of $73.25 million is for a duration of 612 days, but the number of units or specific items procured is not detailed.
What is the potential risk to program effectiveness if Northrop Grumman fails to deliver?
The risk to program effectiveness is moderate to high, as these are 'MSL AIRCRAFT ACCESSORIES AND COMPONENTS'. Failure to deliver these critical parts could lead to aircraft downtime, impacting operational readiness. However, the Navy likely has contingency plans and may have other sources or repair capabilities for such components.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
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: 600 GRUMMAN RD WEST, BETHPAGE, NY, 11714
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0001906D0014
IDV Type: IDC
Timeline
Start Date: 2006-04-28
Current End Date: 2007-12-31
Potential End Date: 2007-12-31 00:00:00
Last Modified: 2016-02-04
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