DoD Obligates $94.7M for KC-10 Program Support via Full and Open Competition
Contract Overview
Contract Amount: $203,215,273 ($203.2M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-10-26
End Date: 2014-09-30
Contract Duration: 704 days
Daily Burn Rate: $288.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Defense
Official Description: THE PURPOSE OF THIS DELIVERY ORDER 0020, IS TO OBLIGATE FY13 FUNDING, IN THE AMOUNT OF $94,670,388.00, 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 $203.2 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: THE PURPOSE OF THIS DELIVERY ORDER 0020, IS TO OBLIGATE FY13 FUNDING, IN THE AMOUNT OF $94,670,388.00, TO SUPPORT THE KC-10 PROGRAM Key points: 1. Significant funding for a critical aircraft sustainment program. 2. Northrop Grumman is the incumbent contractor, suggesting potential for follow-on work. 3. Risk of cost overruns exists given the program's duration and complexity. 4. Spending falls within the 'Other Support Activities for Air Transportation' sector.
Value Assessment
Rating: good
The $94.7M obligation for this delivery order appears reasonable for supporting the KC-10 program over its two-year duration. Benchmarking against similar sustainment contracts for large aircraft programs 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 pricing mechanisms and discovery process are not detailed here.
Taxpayer Impact: Full and open competition is intended to maximize taxpayer value by fostering a competitive environment that drives down costs.
Public Impact
Ensures continued operational readiness of the KC-10 fleet, vital for refueling and strategic airlift missions. Supports jobs within Northrop Grumman and its supply chain. Contributes to the overall defense readiness of the United States.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep or uncontracted requirements.
- Long-term sustainment costs can escalate beyond initial projections.
Positive Signals
- Awarded under full and open competition.
- Clear purpose for funding obligation.
- Supports a critical military asset.
Sector Analysis
This spending falls under 'Other Support Activities for Air Transportation,' a sector that includes services essential for maintaining and operating aircraft. Benchmarks for similar sustainment contracts are highly variable based on aircraft type and service scope.
Small Business Impact
No information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract was awarded by the Defense Contract Management Agency, indicating established oversight processes. However, the specific oversight mechanisms for this delivery order are not detailed.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost growth over the contract duration.
- Reliance on a single incumbent contractor.
- Lack of detailed performance metrics in the provided data.
- Uncertainty regarding small business participation.
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 $203.2 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. THE PURPOSE OF THIS DELIVERY ORDER 0020, IS TO OBLIGATE FY13 FUNDING, IN THE AMOUNT OF $94,670,388.00, 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 $203.2 million.
What is the period of performance?
Start: 2012-10-26. End: 2014-09-30.
What is the historical cost performance of the KC-10 program under Northrop Grumman's previous contracts?
Historical cost performance data is crucial for assessing the value of this $94.7M obligation. Analyzing past contract spending against performance metrics and budget adherence for the KC-10 program under Northrop Grumman would reveal trends in cost control and efficiency. This insight helps determine if the current funding aligns with historical spending patterns and if there's a risk of cost overruns or savings.
What are the key performance metrics and deliverables associated with this delivery order?
Understanding the specific performance metrics and deliverables is essential for evaluating the effectiveness of this $94.7M expenditure. Without knowing what Northrop Grumman is contracted to achieve (e.g., specific maintenance tasks, readiness rates, response times), it's difficult to assess if the funding is being used efficiently and if the program's objectives will be met. This information is key to measuring return on investment.
How does the pricing structure of this delivery order compare to industry standards for similar aircraft sustainment services?
Benchmarking the pricing structure against industry standards is vital for determining the value for money. Comparing the cost-plus structure (if applicable) and specific rates to those of similar contracts for other large military aircraft sustainment programs will highlight potential areas of overpricing or cost savings. This analysis directly impacts the assessment of taxpayer impact and overall contract value.
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: 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: $203,215,273
Exercised Options: $203,215,273
Current Obligation: $203,215,273
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: 2012-10-26
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2018-09-13
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