DoD's $197M KC-10 Funding Awarded to Northrop Grumman for Air Transportation Support
Contract Overview
Contract Amount: $196,764,502 ($196.8M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-01-15
End Date: 2010-09-30
Contract Duration: 258 days
Daily Burn Rate: $762.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: KC-10 FUNDING
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $196.8 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: KC-10 FUNDING Key points: 1. Significant funding allocated for critical air transportation support services. 2. Northrop Grumman, a major defense contractor, secured the award. 3. The contract was awarded under full and open competition. 4. This funding supports the KC-10 aircraft, vital for aerial refueling and logistics.
Value Assessment
Rating: good
The award amount of $196.8 million for a 9-month period appears reasonable given the scope of support for the KC-10 fleet. Benchmarking against similar complex aviation support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: Competitive bidding likely ensured taxpayer funds were used efficiently for essential KC-10 support services.
Public Impact
Ensures continued operational readiness of the KC-10 fleet. Supports critical aerial refueling capabilities for U.S. military operations. Contributes to the logistics and sustainment of a key strategic asset.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope expands beyond initial estimates.
- Dependence on a single contractor for critical support services.
Positive Signals
- Awarded through full and open competition.
- Supports a vital national defense asset.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on support activities for air transportation. Spending in this area is crucial for maintaining military readiness and operational capabilities.
Small Business Impact
The data indicates this award went to a large prime contractor, Northrop Grumman. There is no explicit information on small business subcontracting participation in this specific award.
Oversight & Accountability
The Department of the Air Force awarded this contract, implying oversight from within the DoD. Further details on performance monitoring and accountability mechanisms would be beneficial.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract awarded to a single large business prime.
- Limited duration of the contract period.
- Potential for scope creep impacting final cost.
- Reliance on contractor for specialized technical expertise.
Tags
other-support-activities-for-air-transpo, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $196.8 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. KC-10 FUNDING
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN TECHNICAL SERVICES, INC..
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 $196.8 million.
What is the period of performance?
Start: 2010-01-15. End: 2010-09-30.
What specific technical services are included in this $197 million award for KC-10 support?
The award covers 'Other Support Activities for Air Transportation' for the KC-10 fleet. This likely encompasses a range of services such as maintenance, logistics, technical support, engineering services, and potentially training related to the aircraft's operation and sustainment. Specific details would be found in the contract's statement of work.
What are the primary risks associated with this firm-fixed-price contract for KC-10 support?
A primary risk with firm-fixed-price contracts is that the contractor may cut corners on quality or service to maximize profit if costs exceed expectations. For the government, the risk lies in potentially paying a premium if the initial price was too high or if unforeseen technical issues arise that require extensive, costly workarounds not fully anticipated.
How does this funding contribute to the overall effectiveness of U.S. air mobility and power projection?
The KC-10 is a critical asset for aerial refueling, extending the range and endurance of other aircraft, and for strategic airlift. Funding its support ensures the continued operational readiness of these capabilities, which are essential for global power projection, logistical support of deployed forces, and maintaining air superiority.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 2411 DULLES CORNER PARK STE 800, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $196,764,502
Exercised Options: $196,764,502
Current Obligation: $196,764,502
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA810610D0001
IDV Type: IDC
Timeline
Start Date: 2010-01-15
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2018-09-06
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