DoD's $204M KC-10 CLS Support Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $204,156,956 ($204.2M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-10-01
End Date: 2017-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $186.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: Other
Official Description: IGF::CL,CT::IGF KC-10 CLS SUPPORT
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $204.2 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: IGF::CL,CT::IGF KC-10 CLS SUPPORT Key points: 1. Contract value of $204.16M over 3 years. 2. Awarded via full and open competition. 3. No small business participation noted. 4. Supports Air Transportation activities.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure requires careful monitoring to ensure cost efficiency. Benchmarking against similar support contracts is crucial for validating pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value.
Taxpayer Impact: The competitive award aims to secure necessary support services at a reasonable cost to taxpayers.
Public Impact
Ensures continued operational readiness of KC-10 aircraft. Supports critical Air Force logistics and maintenance. Impacts personnel and resources involved in air transportation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business subcontracting plan.
- Cost-plus-fixed-fee pricing can lead to cost overruns if not managed tightly.
Positive Signals
- Awarded through full and open competition.
- Supports essential military aviation capabilities.
Sector Analysis
This contract falls under Other Support Activities for Air Transportation, a sector critical for military readiness. Spending benchmarks for similar support services vary widely based on aircraft type and scope of work.
Small Business Impact
The contract data indicates no specific set-aside for small businesses, nor does it explicitly mention small business participation. Further review would be needed to determine if subcontracting opportunities were pursued.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight would focus on performance metrics, cost control, and adherence to contract terms to ensure accountability.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost-plus-fixed-fee pricing.
- No small business participation noted.
- Potential for cost overruns.
- Reliance on a single contractor for critical support.
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 $204.2 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. IGF::CL,CT::IGF KC-10 CLS 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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $204.2 million.
What is the period of performance?
Start: 2014-10-01. End: 2017-09-30.
What is the cost-plus-fixed-fee structure's typical efficiency compared to other contract types for similar services?
Cost-plus-fixed-fee contracts can be efficient when scope is uncertain, but they carry a risk of cost overruns if not rigorously managed. Compared to firm-fixed-price, they offer less cost certainty for the government. However, for complex support services where requirements may evolve, they can facilitate flexibility and ensure contractor engagement.
What are the primary risks associated with Northrop Grumman's performance on this KC-10 CLS Support contract?
Key risks include potential cost overruns due to the cost-plus-fixed-fee structure, performance deficiencies impacting KC-10 availability, and challenges in maintaining specialized technical expertise. Ensuring adequate oversight and performance metrics are in place is crucial to mitigate these risks and ensure mission success.
How does this contract contribute to the overall effectiveness of the Air Force's air transportation capabilities?
This contract is vital for maintaining the operational readiness and effectiveness of the KC-10 fleet, a critical asset for aerial refueling and strategic airlift. By ensuring proper maintenance and support, it directly contributes to the Air Force's ability to project power and execute global missions, thereby enhancing overall air transportation effectiveness.
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: $204,156,956
Exercised Options: $204,156,956
Current Obligation: $204,156,956
Subaward Activity
Number of Subawards: 1984
Total Subaward Amount: $1,431,093,159
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: 2014-10-01
Current End Date: 2017-09-30
Potential End Date: 2018-09-30 00:00:00
Last Modified: 2018-09-06
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