DoD Awards Northrop Grumman $208M for Aircraft Components, Raising Oversight Concerns
Contract Overview
Contract Amount: $208,169,603 ($208.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2000-04-21
End Date: 2002-03-31
Contract Duration: 709 days
Daily Burn Rate: $293.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200011!5700!000014!GU09 !ASC/LYTDK !F3365700C2114 !A!*!* !20000421!20020331!005128988!008255408!008255408!N!26916!NORTHROP GRUMMAN CORPORATION -!600 HICKS RD !ROLLING MEADOW !IL!60008!65338!031!17!ROLLING MEADOWS !COOK !ILLINOIS !0001!+000012250000!Y!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !9999!1!*!*!*!B!N!A!D !N!J!1!001!N!2A!A!Y!A!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!D!N!*!*!*!*!*!
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $208.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200011!5700!000014!GU09 !ASC/LYTDK !F3365700C2114 !A!*!* !20000421!20020331!005128988!008255408!008255408!N!26916!NORTHROP GRUMMAN CORPORATION -!600 HICKS RD !ROLLING MEADOW !IL!60008!65338!031!17!ROLLING MEADOWS !COO… Key points: 1. Significant contract value of $208 million awarded to a major defense contractor. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. Concerns arise regarding oversight and accountability for this substantial award. 4. The contract falls within the 'Other Electronic Component Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $208,169,603 for aircraft accessories and components appears substantial. Benchmarking against similar contracts for electronic components is difficult without more specific details on the components and services provided. The lack of detailed cost breakdowns or performance metrics in the provided data makes a precise value assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. This method generally promotes price discovery and competition, potentially leading to better pricing for the government. However, the effectiveness of this competition in achieving optimal pricing is not detailed.
Taxpayer Impact: The government secured a contract through a competitive process, which is generally favorable for taxpayers. However, the ultimate taxpayer impact depends on the efficiency and effectiveness of the contractor's performance and the government's oversight.
Public Impact
Taxpayers are funding a significant defense contract for critical aircraft components. The award impacts the aerospace and defense sector, specifically electronic component manufacturing. Potential for job creation and economic activity within the contractor's operational areas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Oversight and Accountability
- Value Assessment
- Performance Metrics
Positive Signals
- Full and Open Competition
Sector Analysis
This contract is within the 'Other Electronic Component Manufacturing' sector, which is a critical part of the defense industrial base. Spending in this sector can fluctuate based on defense priorities and technological advancements. Benchmarks for similar contracts are highly dependent on the specific components and scale of production.
Small Business Impact
The data indicates the award went to Northrop Grumman Systems Corporation, a large prime contractor. There is no direct indication of small business subcontracting participation in the provided data, which warrants further investigation to ensure small business utilization goals are met.
Oversight & Accountability
The contract's duration of 709 days and its substantial value raise questions about the adequacy of government oversight. Ensuring proper performance monitoring, cost control, and adherence to contract terms is crucial for accountability and taxpayer value.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed performance metrics
- Insufficient cost breakdown for value assessment
- Potential for inadequate oversight on a large, long-term contract
- Unclear small business subcontracting participation
Tags
other-electronic-component-manufacturing, department-of-defense, il, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $208.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200011!5700!000014!GU09 !ASC/LYTDK !F3365700C2114 !A!*!* !20000421!20020331!005128988!008255408!008255408!N!26916!NORTHROP GRUMMAN CORPORATION -!600 HICKS RD !ROLLING MEADOW !IL!60008!65338!031!17!ROLLING MEADOWS !COOK !ILLINOIS !0001!+000012250000!Y!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !9999!1!*!*!*!B!N!A!D !N!J!
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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $208.2 million.
What is the period of performance?
Start: 2000-04-21. End: 2002-03-31.
What specific aircraft components were procured under this contract, and how do their costs compare to industry standards for similar items?
The provided data identifies the contract as being for 'MSL AIRCRAFT ACCESSORIES AND COMPONENTS' within the 'Other Electronic Component Manufacturing' NAICS code. Without a detailed breakdown of the specific components, their technical specifications, and the quantities ordered, it is impossible to accurately benchmark their cost against industry standards. The total award of $208 million over approximately two years suggests a significant scope of work, but the unit cost remains unascertainable from this data alone.
What are the key performance indicators (KPIs) for this contract, and how has Northrop Grumman performed against them?
The provided contract data does not specify any key performance indicators (KPIs) or metrics for evaluating Northrop Grumman's performance. Effective oversight requires clearly defined KPIs related to delivery schedules, quality standards, and technical performance. Without this information, assessing the contractor's effectiveness and the overall success of the contract in meeting its objectives is challenging.
What mechanisms are in place to ensure ongoing oversight and accountability for this $208 million contract, particularly given its duration?
The data indicates a contract duration of 709 days (approximately two years) with a value of $208 million. While awarded under full and open competition, the specific oversight mechanisms, such as contract administration, quality assurance surveillance, and payment reviews, are not detailed. Robust oversight is critical for such a large and lengthy contract to ensure taxpayer funds are used efficiently and effectively, and that contract requirements are met.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 600 HICKS RD, ROLLING MEADOW, IL
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2000-04-21
Current End Date: 2002-03-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2009-03-12
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