DoD Obligates $245M for KC-10 CLS Services Support via Full and Open Competition
Contract Overview
Contract Amount: $245,028,973 ($245.0M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-10-21
End Date: 2017-09-30
Contract Duration: 2,171 days
Daily Burn Rate: $112.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: Defense
Official Description: THE PURPOSE OF THIS MODIFICATION IS TO OBLIGATE FUNDING FOR THE KC-10 CLS SERVICES SUPPORT.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $245.0 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: THE PURPOSE OF THIS MODIFICATION IS TO OBLIGATE FUNDING FOR THE KC-10 CLS SERVICES SUPPORT. Key points: 1. Significant funding ($245M) allocated for KC-10 sustainment services. 2. Contract awarded through full and open competition, suggesting market availability. 3. Northrop Grumman Technical Services is the incumbent provider. 4. Services span nearly six years, indicating long-term support needs.
Value Assessment
Rating: good
The total award amount is $245,028,973.09. Without specific unit cost data or a clear breakdown of services, a precise per-unit cost benchmark is difficult. However, the duration of nearly six years for comprehensive support suggests a substantial but potentially reasonable investment for maintaining critical aircraft.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically fosters competitive pricing and allows the government to select the best value. The use of a delivery order under an existing contract structure implies a structured procurement process.
Taxpayer Impact: The competitive nature of the award aims to ensure taxpayer funds are used efficiently for essential defense sustainment services.
Public Impact
Ensures continued operational readiness of the KC-10 fleet, vital for global reach and refueling capabilities. Supports critical logistics and maintenance functions for a key strategic asset. Provides stability for the contractor's workforce involved in these specialized services. Potential impact on future defense sustainment contracts by setting a competitive benchmark.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for per-unit analysis.
- Potential for scope creep in long-term sustainment contracts.
- Dependence on a single contractor for critical support.
Positive Signals
- Awarded through full and open competition.
- Long contract duration indicates sustained need and potential for economies of scale.
- Supports a critical national defense asset.
Sector Analysis
This contract falls under Other Support Activities for Air Transportation within the broader aerospace and defense sector. Spending in this area is crucial for maintaining aging fleets and ensuring operational readiness. Benchmarks for similar sustainment contracts vary widely based on aircraft type and service scope.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as Northrop Grumman Technical Services, Inc. is a large business. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating established oversight. The use of a delivery order under a broader contract suggests adherence to procurement regulations, but ongoing monitoring is essential for performance and cost control.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long-term contract dependency.
- Potential for cost overruns in sustainment.
- Lack of granular cost data.
- Limited visibility into subcontractor involvement.
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 $245.0 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. THE PURPOSE OF THIS MODIFICATION IS TO OBLIGATE FUNDING FOR THE KC-10 CLS SERVICES SUPPORT.
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $245.0 million.
What is the period of performance?
Start: 2011-10-21. End: 2017-09-30.
What is the specific breakdown of costs for different sustainment services (e.g., maintenance, parts, technical support) within this $245M award?
A detailed breakdown of costs per service category is not provided in the available data. Understanding the allocation of funds across maintenance, spare parts, technical support, and other CLS functions would allow for a more granular assessment of value and potential cost efficiencies. This information is crucial for identifying areas where costs might be optimized in future contract modifications or renewals.
What were the key performance metrics and evaluation criteria used during the full and open competition that led to this award?
The provided data does not specify the key performance metrics or evaluation criteria used in the competition. Typically, such competitions consider factors like technical approach, past performance, management capability, and price. Knowing these criteria would help assess the thoroughness of the evaluation and the basis for selecting Northrop Grumman Technical Services, Inc. as the best value provider.
How does the cost per flight hour or per operational hour for KC-10 sustainment under this contract compare to similar refueling aircraft or previous contracts?
A direct comparison of cost per operational hour is not possible without specific usage data and the detailed cost breakdown. However, the total award of $245M over approximately 2171 days (nearly 6 years) suggests a significant ongoing investment. Benchmarking against similar platforms or historical data would be necessary to determine if this represents efficient spending for maintaining the KC-10's unique capabilities.
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: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
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: $245,028,973
Exercised Options: $245,028,973
Current Obligation: $245,028,973
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: 2011-10-21
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2018-09-06
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