DoD Awards Northrop Grumman $944M for Communication Equipment Under Full and Open Competition

Contract Overview

Contract Amount: $58,380,140 ($58.4M)

Contractor: Northrop Grumman Corporation

Awarding Agency: Department of Defense

Start Date: 1996-12-10

End Date: 2005-05-31

Contract Duration: 3,094 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 199712!2100!0454!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0792CB008 !A!*!P00058 !19961210!19980430!944747195!944747195!008255408!N!26512!NORTHROP GRUMMAN CORPORATION !S OYSTER BAY RD !BETHPAGE !NY!11714!06387!059!36!BETHPAGE !NASSAU !NEW YORK !0001!+000000375269!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !3669!3!*!*!B!B!A!*!A !Y!J!2!002!B!* !A!N!A!* !* !N!C!*!C!C!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $58.4 million to NORTHROP GRUMMAN CORPORATION for work described as: 199712!2100!0454!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0792CB008 !A!*!P00058 !19961210!19980430!944747195!944747195!008255408!N!26512!NORTHROP GRUMMAN CORPORATION !S OYSTER BAY RD !BETHPAGE !NY!11714!06387!059!36!BETHPAGE !NASSAU… Key points: 1. Significant contract value of $944.7 million awarded to a major defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is substantial at 3094 days, indicating a long-term need. 4. The sector is Electronics and Communication, a critical area for defense operations.

Value Assessment

Rating: good

The contract value of $944,747,195 is a substantial award. Benchmarking against similar large-scale defense electronics contracts would be necessary for a precise pricing assessment, but the full and open competition suggests a potentially competitive price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process.

Public Impact

Ensures the Department of Defense has necessary communication equipment. Supports a major defense contractor and its supply chain. Long-term contract provides stability for both the government and the contractor. Potential for technological advancements in communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is very long (over 8 years).
Specific details on the 'MISCELLANEOUS COMMUNICATION EQUIPMENT' are not provided.
No indication of small business participation.

Positive Signals

Awarded under full and open competition.
Contract value is significant, indicating a critical need.
Northrop Grumman is a well-established defense contractor.

Sector Analysis

This contract falls within the Electronics and Communication sector, which is vital for modern military operations. Spending in this area is consistently high due to the need for advanced and reliable communication systems.

Small Business Impact

There is no explicit mention of small business participation in this award. Further analysis would be needed to determine if any subcontracting opportunities were allocated to small businesses.

Oversight & Accountability

The contract was awarded by the Department of Defense, with oversight likely provided by the Defense Contract Management Agency. The use of full and open competition suggests a structured procurement process.

Related Government Programs

Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Long contract duration may lead to technological obsolescence.
Lack of specificity regarding the 'miscellaneous communication equipment'.
No clear indication of small business involvement.
Potential for cost overruns over the extended period.
Reliance on a single large contractor for critical communication assets.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.4 million to NORTHROP GRUMMAN CORPORATION. 199712!2100!0454!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0792CB008 !A!*!P00058 !19961210!19980430!944747195!944747195!008255408!N!26512!NORTHROP GRUMMAN CORPORATION !S OYSTER BAY RD !BETHPAGE !NY!11714!06387!059!36!BETHPAGE !NASSAU !NEW YORK !0001!+000000375269!N!N!000000000000!5895!MISCELLANEOUS COMMUNICATION EQUIPMENT !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !3669!3!*!*!B!B!A!*!A !Y!J!2!0

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN 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 $58.4 million.

What is the period of performance?

Start: 1996-12-10. End: 2005-05-31.

What specific types of communication equipment are being procured under this contract, and how do they align with current and future DoD communication needs?

The data specifies 'MISCELLANEOUS COMMUNICATION EQUIPMENT' without further detail. Understanding the exact nature of this equipment is crucial to assess its relevance to current and future Department of Defense communication requirements. This could range from tactical radios to satellite communication systems, each with different strategic implications and technological lifecycles.

Given the contract's long duration, what mechanisms are in place to ensure the equipment remains technologically relevant and that pricing remains competitive throughout its lifecycle?

Long-term contracts often include provisions for technical refresh and price adjustments. It is important to review the contract's specific clauses regarding technology insertion, performance metrics, and economic price adjustments to ensure continued value and relevance. Without these, the government risks acquiring outdated technology at potentially non-competitive prices over time.

How was the 'full and open competition' process structured, and what was the competitive landscape among potential bidders for this specific type of communication equipment?

Understanding the competitive landscape is key. While 'full and open' indicates broad solicitation, the number of actual bids received and the nature of the competition (e.g., sole bid from a specific technology provider) would reveal the true level of price pressure. Further investigation into the solicitation details and bid history would clarify the effectiveness of the competition.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: S OYSTER BAY RD, BETHPAGE, NY, 11714

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline