DoD Awards Northrop Grumman $110M for Eight KC-10 Engine Overhauls
Contract Overview
Contract Amount: $110,454,378 ($110.5M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-10-01
End Date: 2018-11-30
Contract Duration: 1,521 days
Daily Burn Rate: $72.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Defense
Official Description: IGF::CL::IGF EIGHT ENGINE OVERHAULS 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 $110.5 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: IGF::CL::IGF EIGHT ENGINE OVERHAULS TO SUPPORT THE KC-10 PROGRAM. Key points: 1. Significant contract value for critical aircraft sustainment. 2. Northrop Grumman is a major defense contractor, indicating established capabilities. 3. Potential risk associated with sole-source or limited competition for specialized services. 4. Spending falls within the broader Defense sector's maintenance and repair expenditures.
Value Assessment
Rating: good
The award amount of $110.4M for eight engine overhauls appears reasonable given the complexity and specialized nature of KC-10 aircraft engines. Benchmarking against similar large-scale engine maintenance contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should have driven price discovery. This method is generally favorable for achieving fair and reasonable pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense support services.
Public Impact
Ensures continued operational readiness of the KC-10 fleet, vital for refueling and airlift missions. Supports critical national defense capabilities by maintaining aging aircraft. Economic impact through contract with a major aerospace and defense company.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns on complex overhauls.
- Dependence on a single contractor for specialized engine maintenance.
Positive Signals
- Awarded through full and open competition.
- Supports a critical military asset (KC-10).
Sector Analysis
This contract falls under the Defense sector, specifically focusing on aircraft maintenance and sustainment. Spending on engine overhauls is a significant component of maintaining aging military aviation fleets, with costs varying widely based on aircraft type and overhaul scope.
Small Business Impact
The data indicates the prime contractor is Northrop Grumman Technical Services, Inc., a large business. There is no explicit mention of small business participation in this specific award, suggesting potential for subcontracting opportunities or a lack of direct involvement.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. Oversight would focus on adherence to technical specifications, delivery schedules, and cost controls.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for schedule delays due to unforeseen technical issues.
- Risk of cost growth if additional repairs are required.
- Dependence on a single contractor for critical maintenance.
- Long-term sustainment costs for aging aircraft.
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 $110.5 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. IGF::CL::IGF EIGHT ENGINE OVERHAULS 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 $110.5 million.
What is the period of performance?
Start: 2014-10-01. End: 2018-11-30.
What is the historical cost performance of Northrop Grumman on similar engine overhaul contracts?
Analyzing Northrop Grumman's past performance on comparable engine overhaul contracts, particularly for large military aircraft, would provide insight into their cost control capabilities and potential for budget adherence. This historical data can highlight trends in cost overruns or savings, informing future contract negotiations and oversight strategies.
What are the specific technical risks associated with KC-10 engine overhauls?
The technical risks associated with KC-10 engine overhauls likely include the discovery of unforeseen component failures, the availability of specialized parts, and the complexity of integrating updated or refurbished systems. Aging aircraft present unique challenges, potentially requiring extensive repairs beyond standard overhaul procedures, which could impact timelines and costs.
How does the operational availability of the KC-10 fleet impact mission effectiveness?
The operational availability of the KC-10 fleet directly impacts the Air Force's ability to conduct critical aerial refueling and strategic airlift missions. Ensuring these aircraft are mission-ready through timely and effective engine overhauls is paramount for supporting global operations, power projection, and logistical support for other military assets.
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: $110,454,378
Exercised Options: $110,454,378
Current Obligation: $110,454,378
Subaward Activity
Number of Subawards: 40
Total Subaward Amount: $109,788,236
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: 2018-11-30
Potential End Date: 2018-11-30 00:00:00
Last Modified: 2019-04-02
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