DoD awards $32.4M contract for Other Communications Equipment to Northrop Grumman, facing limited competition
Contract Overview
Contract Amount: $32,448,367 ($32.4M)
Contractor: Northrop Grumman Space & Mission Systems Corp.
Awarding Agency: Department of Defense
Start Date: 2009-05-22
End Date: 2012-02-29
Contract Duration: 1,013 days
Daily Burn Rate: $32.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BOA
Place of Performance
Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95119
Plain-Language Summary
Department of Defense obligated $32.4 million to NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP. for work described as: BOA Key points: 1. Significant contract value of $32.4 million awarded. 2. Limited competition due to sole-source nature. 3. Potential risk associated with cost-plus fixed fee contract type. 4. Spending falls within the 'Other Communications Equipment Manufacturing' sector.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not closely managed. Benchmarking against similar 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 may result in taxpayers paying a premium for the goods or services received.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on a single contractor for critical communications equipment. Lack of transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Contract awarded to a known entity (Northrop Grumman)
Sector Analysis
This contract falls under 'Other Communications Equipment Manufacturing,' a broad category. Spending benchmarks for this specific type of equipment are hard to establish without more detail, but the value is substantial.
Small Business Impact
The awardee, Northrop Grumman, is a large corporation. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and the delivered product meets all specifications. Accountability for cost control rests heavily on the contracting officer.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Cost-plus contract type increases risk of cost overruns.
- Lack of detailed cost breakdown hinders value assessment.
- Potential for taxpayers to overpay due to non-competitive nature.
Tags
other-communications-equipment-manufactu, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.4 million to NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP.. BOA
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP..
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 $32.4 million.
What is the period of performance?
Start: 2009-05-22. End: 2012-02-29.
What specific communications equipment was procured, and how does its cost compare to similar, competitively sourced items?
The data indicates 'Other Communications Equipment Manufacturing' but lacks specificity. Without knowing the exact nature of the equipment, a direct cost comparison to competitively sourced items is impossible. However, sole-source awards, especially CPFF, generally carry a higher risk of inflated costs compared to fully competed contracts.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award is not provided in the data. Typically, such justifications involve unique capabilities, urgent needs, or lack of other sources. For a CPFF contract, fair and reasonable pricing is assessed through cost analysis, but the absence of competition limits the government's leverage in price negotiations.
How effectively has Northrop Grumman delivered the required communications equipment under this contract, and have there been any performance issues?
The provided data does not include information on contract performance or delivery effectiveness. While the contract duration was over 1000 days, this does not inherently indicate success or failure. Further investigation into performance metrics and delivery records would be needed to assess effectiveness.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 6377 SAN IGNACIO AVE, SAN JOSE, CA, 95119
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $39,881,719
Exercised Options: $39,745,997
Current Obligation: $32,448,367
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862008G3007
IDV Type: IDC
Timeline
Start Date: 2009-05-22
Current End Date: 2012-02-29
Potential End Date: 2012-02-29 00:00:00
Last Modified: 2018-10-17
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