DoD Awards $200M Contract for Air Transportation Support to Northrop Grumman
Contract Overview
Contract Amount: $200,208,468 ($200.2M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-08-06
End Date: 2013-12-31
Contract Duration: 1,973 days
Daily Burn Rate: $101.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: C20 CLS BASIC AWARD
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $200.2 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: C20 CLS BASIC AWARD Key points: 1. Significant contract value of $200.2 million awarded. 2. Northrop Grumman Technical Services, Inc. is the sole awardee. 3. Contract duration spans over 5 years. 4. Awarded by the Department of the Air Force. 5. Classified under 'Other Support Activities for Air Transportation'.
Value Assessment
Rating: fair
The contract value of $200.2 million over five years suggests a substantial investment. Benchmarking against similar support contracts for air transportation is necessary to assess if the pricing is competitive and reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive process.
Public Impact
Ensures continued support for critical air transportation activities within the Department of the Air Force. Supports operational readiness and logistical capabilities. Potential for job creation and economic activity related to the contract performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (over 5 years).
- No indication of small business participation.
- Specific performance metrics and outcomes not detailed.
Positive Signals
- Awarded under full and open competition.
- Clear contract type (Firm Fixed Price).
- Defined start and end dates.
Sector Analysis
This contract falls within the 'Other Support Activities for Air Transportation' sector, which is crucial for military logistics and operations. Spending in this area is often substantial due to the complex nature of maintaining air fleets and associated infrastructure.
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 opportunities for small businesses were overlooked or if the nature of the services precluded their involvement.
Oversight & Accountability
The contract's duration and value warrant regular oversight to ensure performance standards are met and that the government is receiving the intended value. Accountability mechanisms should be in place to track progress and address any issues promptly.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration may increase risk of cost escalation or obsolescence.
- Lack of small business participation noted.
- Potential for performance issues impacting critical Air Force operations.
- Need for detailed performance metrics to ensure accountability.
Tags
other-support-activities-for-air-transpo, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $200.2 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. C20 CLS BASIC AWARD
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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $200.2 million.
What is the period of performance?
Start: 2008-08-06. End: 2013-12-31.
What specific air transportation support services are covered under this contract, and how do they align with current Air Force operational needs?
The contract covers 'Other Support Activities for Air Transportation.' While the specific services are not detailed in the provided data, they likely encompass a range of logistical, maintenance, or operational support essential for the Air Force's air mobility and readiness. Understanding the precise scope is key to assessing its alignment with evolving mission requirements and technological advancements in aviation.
Given the $200 million value and 5-year duration, what are the primary risks associated with contract performance and cost overruns?
Key risks include potential scope creep, unforeseen operational challenges impacting service delivery, and inflation affecting fixed-price contract profitability. Contractor performance issues, such as delays or quality deficiencies, could also pose significant risks to Air Force operations. Robust contract management and performance monitoring are crucial to mitigate these risks and ensure cost control.
How effectively does this contract leverage competition to ensure optimal value for taxpayer dollars, considering its 'full and open' designation?
The 'full and open' competition designation is a positive indicator for value. However, the effectiveness hinges on the rigor of the bidding process, the number and quality of proposals received, and the evaluation criteria used. Without detailed bid data, it's difficult to definitively assess the extent of price discovery and competitive pressure that ultimately benefited taxpayers.
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
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
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: $200,208,468
Exercised Options: $200,208,468
Current Obligation: $200,208,468
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2008-08-06
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2015-11-24
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