DoD's KC-10 CLS Contract Awarded to Northrop Grumman for $52.4M
Contract Overview
Contract Amount: $52,432,004 ($52.4M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-10-01
End Date: 2017-09-30
Contract Duration: 364 days
Daily Burn Rate: $144.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Defense
Official Description: IGF::OT::IGF KC-10 CONTRACTOR LOGISTICS SUPPORT (CLS)
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $52.4 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: IGF::OT::IGF KC-10 CONTRACTOR LOGISTICS SUPPORT (CLS) Key points: 1. Contract value of $52.4M for KC-10 Contractor Logistics Support. 2. Northrop Grumman Technical Services, Inc. is the sole awardee. 3. Risk associated with sole-source award and potential for cost overruns. 4. Spending falls within the Defense sector, specifically air transportation support.
Value Assessment
Rating: questionable
The contract type is Cost No Fee, which offers limited incentive for cost control. The award value is substantial, and without a competitive benchmark, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, indicating a lack of competition. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award raises concerns about whether taxpayers received the best possible price for these critical logistics services.
Public Impact
Ensures continued operational readiness of the KC-10 fleet. Supports critical air refueling capabilities for the U.S. Air Force. Potential for increased costs due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost No Fee contract type
- Lack of transparency in pricing
Positive Signals
- Supports critical military asset
- Experienced contractor
Sector Analysis
This contract falls under Other Support Activities for Air Transportation within the Defense sector. Spending benchmarks for similar logistics support contracts are often influenced by fleet size, age, and operational tempo.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were explored.
Oversight & Accountability
The award was managed by the Defense Contract Management Agency. Oversight should focus on monitoring costs and ensuring performance under the Cost No Fee structure.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award limits competition.
- Cost No Fee contract type offers limited cost control incentives.
- Potential for cost overruns without competitive pressure.
- Lack of transparency in pricing justification.
- Limited small business participation.
Tags
other-support-activities-for-air-transpo, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.4 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. IGF::OT::IGF KC-10 CONTRACTOR LOGISTICS SUPPORT (CLS)
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 $52.4 million.
What is the period of performance?
Start: 2016-10-01. End: 2017-09-30.
What is the justification for the sole-source award, and were alternatives considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further documentation, it's unclear if a thorough market research process was conducted to identify potential competitors or if specific circumstances necessitated bypassing full and open competition for the KC-10 CLS.
How will the agency ensure cost control and value for money with a Cost No Fee contract?
With a Cost No Fee contract, the government bears the risk of cost overruns. Ensuring value requires rigorous oversight, detailed performance metrics, and close monitoring of expenditures. The agency must actively manage the contractor's performance and costs to prevent inefficiencies and ensure mission objectives are met within budgetary constraints.
What is the long-term strategy for KC-10 sustainment and potential future competition?
The long-term strategy for KC-10 sustainment is crucial given the platform's age. Understanding the roadmap for potential future competitions or alternative sustainment models is important for ensuring cost-effectiveness and operational readiness. This includes assessing the remaining service life of the KC-10 and the evolving needs of air mobility command.
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
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: $53,639,618
Exercised Options: $53,639,618
Current Obligation: $52,432,004
Subaward Activity
Number of Subawards: 423
Total Subaward Amount: $360,000,728
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA810610D0001
IDV Type: IDC
Timeline
Start Date: 2016-10-01
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2022-10-11
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