DoD's $275M E-11A Platform Maintenance Contract with Northrop Grumman Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $274,591,836 ($274.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2012-11-01
End Date: 2018-08-31
Contract Duration: 2,129 days
Daily Burn Rate: $129.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF E-11A PLATFORM MAINTENANCE
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $274.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF E-11A PLATFORM MAINTENANCE Key points: 1. Significant spending on platform maintenance highlights the critical nature of aviation support. 2. Northrop Grumman, a major defense contractor, holds this contract, indicating a concentrated market. 3. The contract's duration and cost raise questions about long-term value and potential cost overruns. 4. While competition was full and open, the final price and its efficiency warrant review.
Value Assessment
Rating: questionable
The contract's total value of $274.6 million over approximately 6 years suggests a substantial investment. Benchmarking against similar platform maintenance contracts is crucial to determine if the pricing reflects fair market value and efficiency, especially given the firm-fixed-price structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the significant total award value necessitates a thorough review of the winning bid to ensure it represents the best value and that competitive pressures effectively controlled costs.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense asset maintenance. Ensuring the contract's efficiency and value is paramount to responsible fiscal stewardship.
Public Impact
Ensures operational readiness of vital Air Force assets. Supports a major defense contractor and its supply chain. Represents a significant portion of the Air Force's aviation maintenance budget. Potential for cost savings through competitive bidding and efficient execution.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High total contract value.
- Long contract duration.
- Lack of specific performance metrics in provided data.
Positive Signals
- Awarded under full and open competition.
- Firm-fixed-price contract type.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and support. Spending benchmarks in this area are highly variable, depending on aircraft type, age, and complexity. The $275 million figure is substantial and requires careful comparison to similar maintenance programs.
Small Business Impact
The provided data does not indicate any specific subcontracting goals or achievements for small businesses on this contract. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would typically involve contract performance monitoring by the Air Force contracting office and potentially audits by the Defense Contract Audit Agency (DCAA). The Inspector General (IG) may also review such contracts for waste, fraud, or abuse.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High total contract value.
- Long contract duration.
- Potential for cost creep despite fixed-price structure.
- Lack of detailed performance metrics in summary data.
- Concentration of work with a single large contractor.
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 $274.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF E-11A PLATFORM MAINTENANCE
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 $274.6 million.
What is the period of performance?
Start: 2012-11-01. End: 2018-08-31.
What specific maintenance tasks are covered under this contract, and how do they align with the platform's operational needs?
The contract covers 'Other Support Activities for Air Transportation,' which is broad. Detailed task orders and statements of work would specify the exact maintenance, repair, and logistical support for the E-11A platform. Understanding these specifics is key to assessing if the $274.6 million expenditure directly supports critical operational requirements and readiness.
How did the competitive bidding process ensure the best possible price and value for taxpayers, given the contract's significant value?
While awarded under full and open competition, the effectiveness of price discovery depends on the number and quality of bids received, the evaluation criteria used, and the negotiation process. A thorough review of the bid evaluation and award decision documentation is necessary to confirm that the winning proposal represented the best value and that competitive pressures adequately controlled costs over the contract's duration.
What performance metrics were established to measure the contractor's effectiveness and ensure the E-11A platform's readiness?
Performance metrics are crucial for ensuring accountability and effectiveness in defense contracts. Without specific details on metrics like on-time delivery, quality of work, or platform availability rates, it's difficult to definitively assess the contractor's effectiveness. The contract's 'VA' status suggests potential concerns regarding value, which could be linked to undefined or poorly monitored performance standards.
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: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 2340 DULLES CORNER PARK, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $279,003,350
Exercised Options: $276,228,956
Current Obligation: $274,591,836
Subaward Activity
Number of Subawards: 161
Total Subaward Amount: $76,721,727
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-11-01
Current End Date: 2018-08-31
Potential End Date: 2018-08-31 00:00:00
Last Modified: 2024-01-26
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