DoD's $15.8M Aircraft Landing Gear Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $15,866,647 ($15.9M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-05-30
End Date: 2013-06-15
Contract Duration: 1,842 days
Daily Burn Rate: $8.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AIRCRAFT LANDING GEAR COMPONENTS
Place of Performance
Location: SPRINGFIELD, CLARK County, OHIO, 45501
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $15.9 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: AIRCRAFT LANDING GEAR COMPONENTS Key points: 1. Contract value of $15.8 million for aircraft landing gear components. 2. Awarded to Northrop Grumman Technical Services, Inc. 3. Procured by the Defense Logistics Agency under the Department of Defense. 4. The contract falls under 'Other Aircraft Parts and Auxiliary Equipment Manufacturing'.
Value Assessment
Rating: fair
The contract value of $15.8 million is moderate for specialized aircraft components. Benchmarking against similar contracts is difficult without more detailed cost breakdowns, but the price appears within a reasonable range for complex aerospace parts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have restricted price discovery and potentially led to higher costs than a fully open process.
Taxpayer Impact: Taxpayer funds are used for defense procurement. The limited competition might result in a less optimal price, impacting the overall value for taxpayer money.
Public Impact
Ensures operational readiness of military aircraft by providing essential landing gear components. Supports a major defense contractor, contributing to the aerospace industrial base. The procurement process impacts the efficiency and cost-effectiveness of military supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have inflated costs.
- Lack of transparency in source exclusion.
Positive Signals
- Supports critical defense logistics.
- Awarded to a known defense contractor.
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this sector is critical for national security but can be subject to higher costs due to specialized requirements and limited suppliers.
Small Business Impact
The contract was awarded to Northrop Grumman Technical Services, Inc., a large business. There is no indication of small business participation in this specific award, which is common for large, specialized defense contracts.
Oversight & Accountability
The Defense Logistics Agency is responsible for oversight. The contract's 'limited competition' status warrants scrutiny to ensure fair pricing and adherence to procurement regulations.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Limited competition raises concerns about price reasonableness.
- Potential for higher costs due to restricted source selection.
- Lack of transparency regarding the exclusion of sources.
- Need for further analysis on the specific components procured.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, oh, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.9 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. AIRCRAFT LANDING GEAR COMPONENTS
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $15.9 million.
What is the period of performance?
Start: 2008-05-30. End: 2013-06-15.
What specific criteria led to the exclusion of other sources, and how did this impact the final price?
The exclusion of sources typically occurs when specific technical capabilities, proprietary technology, or unique manufacturing processes are required, which only a limited number of contractors possess. This limitation inherently reduces competitive pressure, potentially leading to higher prices than if a broader range of suppliers were considered. Detailed justification for source exclusion is crucial for assessing value for money.
How does the 'Other Aircraft Parts' classification compare to the overall spending on landing gear systems?
The classification 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' is broad and may encompass more than just landing gear. To assess the true cost of landing gear systems, a more granular breakdown of spending within this category would be necessary. Comparing this $15.8M to broader defense budgets for aircraft sustainment provides context but lacks specificity on landing gear costs alone.
What is the long-term strategy for ensuring competitive pricing for critical landing gear components beyond this contract?
The long-term strategy should involve exploring options to broaden the supplier base, potentially through technology transfer initiatives or by encouraging new entrants into the market. Regular market research and analysis of the supply chain for critical components like landing gear are essential. The DLA should consider future contracting strategies that prioritize increased competition to drive down costs and ensure supply chain resilience.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
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, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,866,647
Exercised Options: $15,866,647
Current Obligation: $15,866,647
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2008-05-30
Current End Date: 2013-06-15
Potential End Date: 2013-06-15 00:00:00
Last Modified: 2013-10-17
More Contracts from Northrop Grumman Technical Services, Inc.
- CLS Support 31 OCT 2007 Through 30 OCT 2008. Numerous Options ARE Also Included, Which MAY BE Awarded AT a Later Date — $963.9M (Department of Defense)
- Battle Command Training Program Services — $522.2M (Department of Defense)
- Passenger Systems Program Directorate Software Application Development, Modernization, Enhancement, Operations and Maintenance Igf::ot::igf — $336.3M (Department of Homeland Security)
- THE Purpose of This Modification IS to Obligate Funding for the KC-10 CLS Services Support — $245.0M (Department of Defense)
- Program Office Request — $238.3M (Department of Defense)
View all Northrop Grumman Technical Services, Inc. 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)