DoD Awards Northrop Grumman $377M for JSTARS Aircraft Sustainment, Lacking Competition
Contract Overview
Contract Amount: $377,001,568 ($377.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2015-10-29
End Date: 2021-04-15
Contract Duration: 1,995 days
Daily Burn Rate: $189.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: IGF::OT::IGF PROGRAM MANAGEMENT, AIRCRAFT SUSTAINMENT/REPAIR OF JSTARS E-8C WEAPON SYSTEM.
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $377.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF PROGRAM MANAGEMENT, AIRCRAFT SUSTAINMENT/REPAIR OF JSTARS E-8C WEAPON SYSTEM. Key points: 1. Significant contract value of $377M for aircraft sustainment. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Potential risks include lack of competitive pricing and innovation. 4. Engineering services sector sees substantial investment in defense platforms.
Value Assessment
Rating: questionable
The Cost Plus Award Fee contract type can lead to higher costs if not managed tightly. Without competitive benchmarks, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition likely resulted in a higher price than if multiple vendors had bid, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The JSTARS E-8C weapon system's operational readiness could be impacted by sustainment costs. Lack of competition may stifle innovation in aircraft sustainment technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- No small business participation noted
Positive Signals
- Essential sustainment for a critical weapon system
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting a major defense platform. Spending in this area is critical for maintaining military readiness but often involves complex, specialized requirements.
Small Business Impact
The data indicates no small business participation in this contract. This represents a missed opportunity to support small businesses within the defense industrial base.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Contract Management Agency. Oversight is crucial to ensure cost control and performance given the sole-source nature.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited innovation
- No small business participation
Tags
engineering-services, department-of-defense, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $377.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF PROGRAM MANAGEMENT, AIRCRAFT SUSTAINMENT/REPAIR OF JSTARS E-8C WEAPON SYSTEM.
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $377.0 million.
What is the period of performance?
Start: 2015-10-29. End: 2021-04-15.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. However, without specific details, it's difficult to assess if adequate steps were taken to ensure fair and reasonable pricing. A thorough review of the justification and any pre-negotiation analyses would be necessary.
What are the long-term cost implications of a sole-source sustainment contract for the JSTARS E-8C?
Long-term sole-source sustainment contracts can lead to escalating costs as the contractor faces no competitive pressure to reduce prices or improve efficiency. This can result in a higher total cost of ownership for the JSTARS E-8C weapon system over its lifecycle, potentially diverting funds from other critical defense needs.
How does the lack of competition impact the potential for technological advancement in JSTARS sustainment?
A sole-source award limits the exposure of the JSTARS program to innovative solutions from a broader market. Competitors might offer more efficient maintenance techniques, advanced diagnostics, or alternative repair methods that could improve performance and reduce costs. Without this competitive stimulus, technological advancement in sustainment may be slower.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 2000 W NASA BLVD, MELBOURNE, FL, 32902
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $377,121,215
Exercised Options: $377,121,215
Current Obligation: $377,001,568
Subaward Activity
Number of Subawards: 248
Total Subaward Amount: $222,907,616
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F0960300D0210
IDV Type: IDC
Timeline
Start Date: 2015-10-29
Current End Date: 2021-04-15
Potential End Date: 2021-04-15 00:00:00
Last Modified: 2023-09-19
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