DoD's $787M contract for airborne radio and TV communication equipment awarded to Northrop Grumman Systems Corporation

Contract Overview

Contract Amount: $155,571,261 ($155.6M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 1996-11-22

End Date: 1997-09-30

Contract Duration: 312 days

Daily Burn Rate: $498.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 199703!2100!6018!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB1090C7068 !A!*!P00140 !19961122!19970930!786896621!786896621!043723717!N!6R520!CALIFORNIA MICROWAVE, INC !1362 BRASS MILL RD !BELCAMP !MD!21017!06075!025!24!BELCAMP !HARFORD !MARYLAND !0001!+000001500000!N!N!000000000000!5821!RADIO AND TV COMM EQUIPMENT, AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !3663!3!*!*!H!B!A!*!A !U!J!2!002!A!* !A!Y!A!* !* !N!C!*!C!C!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: BELCAMP, HARFORD County, MARYLAND, 21017

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $155.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 199703!2100!6018!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB1090C7068 !A!*!P00140 !19961122!19970930!786896621!786896621!043723717!N!6R520!CALIFORNIA MICROWAVE, INC !1362 BRASS MILL RD !BELCAMP !MD!21017!06075!025!24!BELCAMP !HARFOR… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is 'Definitive Contract' with a 'Cost Plus Fixed Fee' pricing structure. 3. Performance period spans 312 days, indicating a relatively short-term project. 4. The primary contractor, Northrop Grumman Systems Corporation, is a major defense industry player. 5. The contract's value of $786,896,621 represents a significant investment in communication technology. 6. The product service code (PSC) is 5821, relating to radio and TV communication equipment. 7. The contract was managed by the Defense Contract Management Agency.

Value Assessment

Rating: fair

The contract value of approximately $787 million for airborne radio and TV communication equipment is substantial. Without specific details on the equipment's capabilities, quantity, or performance requirements, a direct value-for-money assessment is challenging. However, given the nature of defense contracts and the involvement of a major contractor like Northrop Grumman, the pricing is likely within expected ranges for such specialized systems. Benchmarking against similar airborne communication systems would be necessary for a more precise evaluation of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The open nature of the competition suggests that the government sought the best available solution from the market.

Taxpayer Impact: A full and open competition aims to ensure that taxpayer dollars are used efficiently by driving down costs through market forces and selecting the most advantageous offer.

Public Impact

The primary beneficiaries are likely military personnel who will utilize the advanced airborne communication equipment. The contract delivers critical communication capabilities essential for airborne operations and command and control. The geographic impact is primarily within the defense sector, supporting national security initiatives. The contract supports the aerospace and defense manufacturing workforce involved in producing these specialized electronic systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes incentivize contractors to incur higher costs if the fixed fee is substantial relative to the total cost.
The lack of detailed performance metrics in the provided data makes it difficult to assess the contractor's track record on this specific contract.
The significant dollar amount necessitates robust oversight to ensure funds are used appropriately and effectively.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair selection process.
Northrop Grumman Systems Corporation is a well-established defense contractor with extensive experience in complex systems.
The contract addresses a critical need for advanced airborne communication technology.

Sector Analysis

This contract falls within the broader 'Electronics and Communication' sector, specifically focusing on airborne radio and television communication equipment. This is a highly specialized niche within the defense industry, characterized by advanced technology, stringent performance requirements, and significant research and development investment. The market is dominated by a few large defense contractors capable of meeting these demands. Comparable spending benchmarks would involve analyzing other contracts for similar airborne electronic warfare, communication, or surveillance systems within the Department of Defense.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-value contract awarded to a major defense contractor, it is unlikely to have significant direct subcontracting opportunities specifically designated for small businesses unless mandated by the prime contractor or specific program requirements not detailed here. The focus is on large-scale production and integration, typical of prime defense contractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance, quality, and compliance with contract terms. Accountability measures are inherent in the 'Cost Plus Fixed Fee' structure, where the government pays costs plus a predetermined profit. Transparency is generally limited for defense contracts due to national security considerations, but contract awards and basic details are publicly available through federal procurement databases.

Related Government Programs

Airborne Electronic Warfare Systems
Tactical Data Links
Secure Communication Systems
Avionics Equipment
Defense Communications Infrastructure

Risk Flags

Cost-plus-fixed-fee contract type requires careful monitoring to prevent cost creep.
Significant contract value necessitates robust oversight to ensure proper utilization of funds.
Specialized nature of airborne communication equipment may involve complex integration and testing challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $155.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 199703!2100!6018!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB1090C7068 !A!*!P00140 !19961122!19970930!786896621!786896621!043723717!N!6R520!CALIFORNIA MICROWAVE, INC !1362 BRASS MILL RD !BELCAMP !MD!21017!06075!025!24!BELCAMP !HARFORD !MARYLAND !0001!+000001500000!N!N!000000000000!5821!RADIO AND TV COMM EQUIPMENT, AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !3663!3!*!*!H!B!A!*!A !U!J!2!0

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 $155.6 million.

What is the period of performance?

Start: 1996-11-22. End: 1997-09-30.

What specific types of airborne radio and TV communication equipment were procured under this contract?

The provided data identifies the Product Service Code (PSC) as 5821, which covers 'Radio and TV Communication Equipment, Airborne'. However, it does not specify the exact models, capabilities, or intended use cases of the equipment. This could range from secure voice communication systems for pilots and crew to data transmission equipment for airborne platforms. Further details would likely be found in the contract's statement of work or technical specifications, which are not publicly available in this dataset. Understanding the specific nature of the equipment is crucial for assessing its technological advancement and operational necessity.

How does the $787 million contract value compare to historical spending on similar airborne communication systems by the DoD?

Benchmarking this $787 million contract against historical spending requires access to detailed historical procurement data for similar airborne communication systems. Without specific parameters (e.g., system type, capabilities, platform integration), a direct comparison is difficult. However, large-scale procurements for advanced military communication technology often run into hundreds of millions, or even billions, of dollars. Given Northrop Grumman's role as a major defense contractor, this contract value appears substantial but potentially within the expected range for acquiring sophisticated, mission-critical airborne communication suites for multiple platforms. A comprehensive analysis would involve trend analysis of similar PSCs and contract types over several fiscal years.

What were the key performance metrics or requirements outlined in the contract for Northrop Grumman?

The provided data does not include the specific performance metrics or requirements stipulated in the contract. For a 'Cost Plus Fixed Fee' contract of this magnitude, key performance indicators (KPIs) would typically focus on factors such as reliability, signal clarity, transmission range, security protocols, integration with existing platforms, and timely delivery. The 'fixed fee' component suggests that the contractor's profit is predetermined, incentivizing them to meet these requirements efficiently. However, the absence of these details in the summary data limits a thorough assessment of contractor performance expectations and potential risks.

What is Northrop Grumman Systems Corporation's track record with similar DoD communication contracts?

Northrop Grumman Systems Corporation is a major defense contractor with a long history of developing and supplying complex electronic systems, including communication and avionics equipment, to the Department of Defense and other government agencies. They have been involved in numerous large-scale programs related to command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR). While specific details on past contracts for 'airborne radio and TV communication equipment' are not provided here, their established presence and extensive experience in the defense sector suggest a significant capability to execute contracts of this nature. Past performance evaluations and contract histories would provide a more granular view of their reliability and success rates.

Were there any identified risks or challenges associated with this contract award or execution?

The provided data does not explicitly list risks or challenges associated with this specific contract. However, general risks inherent in large defense procurements include technological obsolescence, integration issues with existing platforms, potential cost overruns (even with a fixed fee, scope changes can occur), and schedule delays. For 'Cost Plus Fixed Fee' contracts, ensuring the contractor maintains cost control while meeting stringent performance requirements is a key oversight challenge. The nature of airborne communication systems also implies potential risks related to cybersecurity and signal integrity in contested electromagnetic environments.

What is the estimated total spending on PSC 5821 (Radio and TV Communication Equipment, Airborne) by the DoD over the last five years?

Estimating the total DoD spending on PSC 5821 over the last five years requires querying a comprehensive federal procurement database that aggregates contract data by PSC code and agency over time. This specific dataset only provides information for one contract. To determine the overall spending trend, one would need to analyze numerous contracts awarded under this PSC code to various contractors across different branches of the DoD. Such an analysis would reveal the market size, demand patterns, and the relative significance of this particular $787 million contract within the broader context of airborne communication equipment procurement.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 1362 BRASS MILL RD, BELCAMP, MD, 21017

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline