DoD Awards Northrop Grumman $291.8M for Aircraft Components, Extended to 2011
Contract Overview
Contract Amount: $291,847,381 ($291.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 1998-08-12
End Date: 2011-12-30
Contract Duration: 4,888 days
Daily Burn Rate: $59.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 199812!5700!0055!GU03 !ASC/FBK !F3365798C2020 !A!*!* !19980812!20010930!005128988!008255408!008255408!N!26916!NORTHROP GRUMMAN CORPORATION !600 HICKS RD !ROLLING MEADOW !IL!60008!65338!031!17!ROLLING MEADOWS !COOK !ILLINOIS !0001!+000017726370!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !9999!3!*!*!*!B!A!*!A !N!J!2!002!B!* !A!Y!D!* !* !N!C!*!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 $291.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 199812!5700!0055!GU03 !ASC/FBK !F3365798C2020 !A!*!* !19980812!20010930!005128988!008255408!008255408!N!26916!NORTHROP GRUMMAN CORPORATION !600 HICKS RD !ROLLING MEADOW !IL!60008!65338!031!17!ROLLING MEADOWS !COOK … Key points: 1. Significant contract value of $291.8 million awarded to a major defense contractor. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. Contract duration is exceptionally long (13 years), raising questions about flexibility and potential for cost overruns. 4. Sector is Electronics and Communication, specifically aircraft accessories and components.
Value Assessment
Rating: fair
The contract value is substantial, but the extended duration makes a direct pricing comparison difficult without knowing the specific deliverables and market conditions over 13 years.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the best price discovery. However, the extremely long duration might have limited the number of bidders or the competitiveness of bids over time.
Taxpayer Impact: While competition was intended to benefit taxpayers, the extended period could lead to less favorable pricing if market conditions change significantly.
Public Impact
Taxpayers funded a long-term contract for essential aircraft components. The extended duration may impact the government's ability to adopt newer technologies if they emerge during the contract period. Oversight is crucial to ensure continued value and performance over the 13-year lifespan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extended contract duration (13 years)
- Potential for technology obsolescence
- Long-term commitment may limit future flexibility
Positive Signals
- Full and open competition
- Awarded to a major, established contractor
Sector Analysis
This contract falls within the Defense sector, specifically for electronic components for aircraft. Spending in this area is critical for maintaining military readiness, and benchmarks often focus on unit costs and lifecycle support.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of small business participation in this specific award data.
Oversight & Accountability
The long duration of this contract necessitates robust oversight to ensure continued adherence to terms, performance standards, and fair pricing throughout its 13-year lifespan.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Extended contract duration (13 years)
- Potential for technology obsolescence
- Risk of price escalation over time
- Limited flexibility for future procurements
- Lack of small business participation noted
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 $291.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 199812!5700!0055!GU03 !ASC/FBK !F3365798C2020 !A!*!* !19980812!20010930!005128988!008255408!008255408!N!26916!NORTHROP GRUMMAN CORPORATION !600 HICKS RD !ROLLING MEADOW !IL!60008!65338!031!17!ROLLING MEADOWS !COOK !ILLINOIS !0001!+000017726370!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A7 !ELECTRONICS AND COMMUNICATION !3000!NOT DISCERNABLE OR CLASSIFIED !9999!3!*!*!*!B!A!*!A !N!J!2!0
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 $291.8 million.
What is the period of performance?
Start: 1998-08-12. End: 2011-12-30.
What specific aircraft components were procured under this contract, and how did their pricing compare to market rates at the time of award?
The data indicates the contract is for 'MSL AIRCRAFT ACCESSORIES AND COMPONENTS'. Without detailed specifications and market analysis from 1998, it's impossible to definitively assess if the initial pricing was competitive. The long duration also means initial pricing may not reflect later market conditions.
What mechanisms were in place to manage price adjustments and ensure value for money over the 13-year contract term?
The contract type is 'FIRM FIXED PRICE', which generally locks in price. However, such long-term fixed-price contracts often include clauses for economic price adjustments or require periodic renegotiation, especially for components with volatile material costs or evolving technology.
How effectively did the 'full and open competition' process ensure the best possible value given the extended contract duration?
While 'full and open competition' is a strong indicator of potential value, its effectiveness over 13 years is questionable. Initial competition might have secured a good price, but market shifts, technological advancements, and inflation over such a long period could erode that initial advantage without renegotiation or contract modification.
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: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 600 HICKS RD, ROLLING MEADOW, IL
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 1998-08-12
Current End Date: 2011-12-30
Potential End Date: 2011-12-30 00:00:00
Last Modified: 2011-12-28
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)