DoD's $148M Global Hawk IDIQ Task Order Awarded to Northrop Grumman Without Competition
Contract Overview
Contract Amount: $148,319,321 ($148.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2013-05-15
End Date: 2014-05-14
Contract Duration: 364 days
Daily Burn Rate: $407.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ACAT 1D, GLOBAL HAWK, IDIQ TO1
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Defense obligated $148.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ACAT 1D, GLOBAL HAWK, IDIQ TO1 Key points: 1. Significant contract value awarded without competitive bidding. 2. Sole source award to a major defense contractor. 3. Potential for higher costs due to lack of competition. 4. Aircraft manufacturing sector with high R&D investment.
Value Assessment
Rating: questionable
The contract value of $148.3 million for a single task order is substantial. Without a competitive benchmark, it's difficult to assess if this price is optimal. The firm-fixed-price contract type offers some cost certainty.
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 may lead to less favorable pricing for the government compared to a competitive process.
Taxpayer Impact: The lack of competition raises concerns about the efficient use of taxpayer funds, potentially leading to overpayment for the goods or services.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The reliance on a single contractor for this critical defense asset could pose supply chain risks. Lack of transparency in the procurement process can erode public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
Positive Signals
- Firm-fixed-price contract
Sector Analysis
This award falls within the aircraft manufacturing sector, which is characterized by high technological complexity and significant government investment. Benchmarks for similar large-scale defense procurements often involve extensive competition.
Small Business Impact
The awardee is a large corporation, and there is no indication that small businesses were involved in this specific task order. Opportunities for small business subcontracting were likely missed.
Oversight & Accountability
The Department of Defense awarded this contract. Oversight is crucial to ensure the justification for a sole-source award is valid and that pricing is reasonable, even without competition.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award raises concerns about price reasonableness.
- Lack of competition limits potential cost savings.
- Potential for contractor lock-in.
- Limited transparency in the procurement process.
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $148.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ACAT 1D, GLOBAL HAWK, IDIQ TO1
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 $148.3 million.
What is the period of performance?
Start: 2013-05-15. End: 2014-05-14.
What was the justification for awarding this significant contract sole-source, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or the unavailability of other sources. Without further documentation, it's impossible to confirm the specific rationale. However, for a contract of this magnitude, a thorough review of competitive alternatives is expected to ensure best value for the government.
How does the pricing of this sole-source contract compare to historical data or industry benchmarks for similar aircraft systems?
Direct comparison is challenging without access to proprietary data or specific market research conducted by the agency. However, sole-source contracts inherently carry a higher risk of non-competitive pricing. The government should have performed robust price analysis, potentially using historical pricing for the Global Hawk program or comparable systems, to validate the reasonableness of the $148.3 million award.
What measures are in place to ensure the effectiveness and performance of the Global Hawk system under this contract, given the lack of competitive pressure?
Effectiveness is typically ensured through stringent contract performance requirements, milestones, and acceptance criteria within the firm-fixed-price contract. The Defense Contract Management Agency (DCMA) would likely oversee performance. However, the absence of competition means the government relies heavily on contract management and oversight rather than market forces to drive performance and innovation.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 17066 GOLDENTOP RD, SAN DIEGO, CA, 92127
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $178,897,549
Exercised Options: $153,228,714
Current Obligation: $148,319,321
Subaward Activity
Number of Subawards: 128
Total Subaward Amount: $63,824,172
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862013D3014
IDV Type: IDC
Timeline
Start Date: 2013-05-15
Current End Date: 2014-05-14
Potential End Date: 2014-05-14 00:00:00
Last Modified: 2025-07-15
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