DoD Awards Northrop Grumman $44.8M for Trainer Aircraft Engineering Support
Contract Overview
Contract Amount: $44,833,539 ($44.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-08-26
End Date: 2026-08-31
Contract Duration: 1,831 days
Daily Burn Rate: $24.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: ENGINEERING SERVICES IN SUPPORTS OF TRAINERS CLS SUSTAINMENT
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $44.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ENGINEERING SERVICES IN SUPPORTS OF TRAINERS CLS SUSTAINMENT Key points: 1. Contract awarded to a large, established defense contractor. 2. Significant contract value for engineering services. 3. Potential for cost overruns given Cost Plus Award Fee structure. 4. Services support critical trainer aircraft sustainment.
Value Assessment
Rating: fair
The Cost Plus Award Fee (CPAF) structure allows for contractor profit based on performance, which can incentivize efficiency but also carries a risk of higher costs compared to fixed-price contracts. Benchmarking against similar engineering support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award mechanism (Delivery Order) implies it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could limit the scope of competition for this specific order.
Taxpayer Impact: The competitive award process aims to secure fair pricing for taxpayers, but the CPAF structure requires careful oversight to ensure value for money.
Public Impact
Ensures continued operational readiness of vital Air Force trainer aircraft. Supports advanced training capabilities for pilots. Impacts the aerospace and defense sector through a significant contract award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to higher final costs.
- Lack of specific per-unit cost data makes detailed value assessment challenging.
- Contract duration extends over several years, increasing exposure to economic fluctuations.
Positive Signals
- Awarded under full and open competition.
- Supports critical military training infrastructure.
- Contractor has a strong track record in defense systems.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting aerospace and defense. Spending in this area is crucial for maintaining military readiness and technological superiority. Benchmarks for similar sustainment engineering contracts vary widely based on system complexity and duration.
Small Business Impact
The data indicates the award went to Northrop Grumman Systems Corporation, a large business. There is no explicit indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses for this specific award.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The Cost Plus Award Fee contract type necessitates robust monitoring of performance metrics and cost controls to ensure accountability and prevent excessive spending.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Award Fee structure.
- Long contract duration.
- Potential for scope creep.
- Reliance on a single large contractor.
Tags
engineering-services, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ENGINEERING SERVICES IN SUPPORTS OF TRAINERS CLS SUSTAINMENT
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 $44.8 million.
What is the period of performance?
Start: 2021-08-26. End: 2026-08-31.
What is the projected cost efficiency of this CPAF contract compared to alternative contract types for similar services?
Assessing cost efficiency for CPAF contracts requires detailed analysis of performance metrics and award fee payouts. While CPAF incentivizes performance, it inherently carries a higher risk of cost escalation than fixed-price contracts. Without specific benchmarks for trainer aircraft sustainment engineering, it's difficult to definitively state its efficiency relative to alternatives. However, the Air Force likely selected CPAF to ensure high-quality support for critical training systems where performance is paramount.
What are the primary risks associated with the long duration and CPAF structure of this contract?
The primary risks include potential cost overruns due to the CPAF structure, where contractor profit is tied to performance, potentially incentivizing higher spending to achieve award fees. The long duration (over 5 years) also exposes the contract to inflation, changing technological requirements, and potential shifts in program priorities, which could necessitate costly contract modifications or lead to reduced value if not managed proactively.
How effectively does this contract ensure the long-term sustainment and modernization of trainer aircraft fleets?
This contract is designed to ensure the immediate and medium-term sustainment of trainer aircraft by providing essential engineering support. Its effectiveness in long-term sustainment and modernization depends heavily on the contractor's ability to adapt to evolving needs, the clarity of performance standards within the CPAF structure, and the Air Force's ongoing program management and strategic planning for the trainer fleet's future.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 6006 WARDLEIGH RD BLDG 1575, HILL AIR FORCE BASE, UT, 84056
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $62,011,526
Exercised Options: $44,833,539
Current Obligation: $44,833,539
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $141,628,810
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA821421D0002
IDV Type: IDC
Timeline
Start Date: 2021-08-26
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 00:00:00
Last Modified: 2025-12-01
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