DoD Obligates $50M for KC-10 Program Support to Northrop Grumman
Contract Overview
Contract Amount: $151,803,430 ($151.8M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-10-01
End Date: 2018-09-30
Contract Duration: 2,190 days
Daily Burn Rate: $69.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE PURPOSE OF THIS DELIVERY ORDER 0017 IS TO OBLIGATE FY13 FUNDING, IN THE AMOUNT $50,000,000.00, TO SUPPORT THE KC-10 PROGRAM
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $151.8 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: THE PURPOSE OF THIS DELIVERY ORDER 0017 IS TO OBLIGATE FY13 FUNDING, IN THE AMOUNT $50,000,000.00, TO SUPPORT THE KC-10 PROGRAM Key points: 1. This Delivery Order obligates FY13 funds for KC-10 program support. 2. The contract is with Northrop Grumman Technical Services, Inc. 3. The total value of this specific order is $50,000,000.00. 4. The contract period spans from October 1, 2012, to September 30, 2018.
Value Assessment
Rating: good
The obligated amount of $50,000,000.00 for this delivery order appears reasonable for supporting a major aircraft program like the KC-10. Benchmarking against similar support contracts for large military aircraft would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and ensures the government receives the best value. The specific price discovery mechanisms within this competitive process are not detailed here.
Taxpayer Impact: The $50 million obligation represents taxpayer funds allocated to maintain and support critical defense assets, ensuring operational readiness.
Public Impact
Ensures continued support for the KC-10 aircraft, a vital asset for aerial refueling and cargo transport. Supports the operational readiness of the U.S. Air Force's strategic capabilities. Contributes to the defense industrial base by providing funding to a major defense contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if program requirements change significantly.
- Reliance on a single contractor for critical program support.
Positive Signals
- Long-term support contract ensures program continuity.
- Awarded under full and open competition, suggesting competitive pricing.
Sector Analysis
This spending falls within the Defense sector, specifically supporting air transportation and logistics. Benchmarks for similar large-scale aircraft sustainment contracts would be relevant for a detailed cost analysis.
Small Business Impact
This contract was awarded to Northrop Grumman Technical Services, Inc., a large business. There is no indication of small business subcontracting in the provided data.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract. Standard oversight procedures for delivery orders and program support contracts would apply.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of detail on total contract value.
- No information on specific support deliverables or performance metrics.
- Potential for scope creep or unexercised options impacting total cost.
- Limited insight into the competitive landscape beyond 'full and open'.
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 $151.8 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. THE PURPOSE OF THIS DELIVERY ORDER 0017 IS TO OBLIGATE FY13 FUNDING, IN THE AMOUNT $50,000,000.00, TO SUPPORT THE KC-10 PROGRAM
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 $151.8 million.
What is the period of performance?
Start: 2012-10-01. End: 2018-09-30.
What is the total contract value beyond this $50M delivery order, and how does it compare to similar KC-10 sustainment efforts?
The provided data only details a $50,000,000.00 obligation for FY13 funding under Delivery Order 0017. Information regarding the total contract value, including any base contract or subsequent delivery orders, is not present. A comparison to similar KC-10 sustainment efforts would require access to historical contract data and program cost baselines.
What specific support activities are covered by this $50M obligation, and are there performance metrics tied to them?
The data indicates the purpose is to 'support the KC-10 program' under 'Other Support Activities for Air Transportation.' Specific details on the nature of the support (e.g., maintenance, logistics, engineering) and associated performance metrics are not provided. These details would typically be found in the contract's statement of work.
How does the pricing structure (Firm Fixed Price) for this delivery order ensure cost-effectiveness for the government?
A Firm Fixed Price (FFP) contract structure shifts the cost risk to the contractor, providing price certainty for the government. For this $50M delivery order, the FFP ensures that the government pays the agreed-upon price regardless of the contractor's actual costs, promoting cost-effectiveness as long as the initial price was competitive.
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
Pricing Type: FIRM FIXED PRICE (J)
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: $151,803,430
Exercised Options: $151,803,430
Current Obligation: $151,803,430
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: 2012-10-01
Current End Date: 2018-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2018-09-26
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