DoD's $400M JSTARS E-8C Program Support Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $400,373,487 ($400.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2016-11-01
End Date: 2021-07-15
Contract Duration: 1,717 days
Daily Burn Rate: $233.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: IGF::OT::IGF, JSTARS E-8C PROGRAM SUPPORT
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $400.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF, JSTARS E-8C PROGRAM SUPPORT Key points: 1. Significant contract value of over $400 million for engineering services. 2. Sole-source award to Northrop Grumman raises questions about competition. 3. Long contract duration (2016-2021) suggests ongoing program support needs. 4. Cost-plus award fee contract type can incentivize performance but requires careful oversight.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed effectively. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a contract of this magnitude may result in suboptimal pricing and reduced value for taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract impacts budget predictability for the DoD. Potential for cost overruns exists with cost-plus contract types if not rigorously overseen.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus award fee contract type
- Lack of competition
- Long contract duration
Positive Signals
- Supports critical JSTARS E-8C program
- Awarded to incumbent contractor with likely expertise
Sector Analysis
This contract falls under Engineering Services, a broad category often supporting complex defense systems. Spending in this sector can be substantial, especially for specialized military platforms like the JSTARS E-8C.
Small Business Impact
The data does not indicate any subcontracting to small businesses. Further analysis would be needed to determine if small business participation was considered or required.
Oversight & Accountability
The cost-plus award fee structure necessitates robust oversight from the Defense Contract Management Agency to ensure costs are reasonable and award fees are justified. The long duration increases the importance of continuous monitoring.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for inflated costs due to sole-source award.
- Risk of contractor not meeting performance expectations despite award fees.
- Lack of transparency regarding the justification for non-competition.
- Complexity of managing cost-plus award fee contracts effectively.
Tags
engineering-services, department-of-defense, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $400.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF, JSTARS E-8C PROGRAM SUPPORT
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $400.4 million.
What is the period of performance?
Start: 2016-11-01. End: 2021-07-15.
What was the justification for the sole-source award, and were alternatives explored?
The justification for a sole-source award is crucial for understanding the necessity of bypassing competition. Without this information, it's difficult to assess if the government received the best possible value. Exploring alternatives, even if ultimately deemed unsuitable, is a standard practice in procurement to ensure fair pricing and market engagement.
How were the award fees determined and what metrics were used to justify them?
Understanding the award fee structure is key to assessing contractor performance and value. The metrics used should directly correlate with program objectives and contractor deliverables. Transparency in how these fees are calculated and awarded helps ensure accountability and prevents potential overpayment based on subjective criteria.
What is the projected total cost of the JSTARS E-8C program over its lifecycle, and how does this contract contribute?
Placing this $400M+ contract within the broader lifecycle cost of the JSTARS E-8C program provides essential context. It helps determine if the current spending is aligned with overall program goals and budget constraints. Understanding the total investment is vital for long-term financial planning and assessing the program's overall return on investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 2000 W NASA BLVD, MELBOURNE, FL, 32902
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $401,232,223
Exercised Options: $401,232,223
Current Obligation: $400,373,487
Actual Outlays: $226,295
Subaward Activity
Number of Subawards: 1400
Total Subaward Amount: $390,765,622
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F0960300D0210
IDV Type: IDC
Timeline
Start Date: 2016-11-01
Current End Date: 2021-07-15
Potential End Date: 2021-07-15 00:00:00
Last Modified: 2023-09-21
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