DoD awards $28.2M to Northrop Grumman for Open Skies Sensor Suite Support, a sole-source contract
Contract Overview
Contract Amount: $28,233,973 ($28.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2014-10-01
End Date: 2021-03-31
Contract Duration: 2,373 days
Daily Burn Rate: $11.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF OPEN SKIES SENSOR SUITE SUPPORT
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF OPEN SKIES SENSOR SUITE SUPPORT Key points: 1. Contract awarded to a single, established vendor. 2. Limited competition raises questions about price discovery. 3. Long contract duration (2014-2021) may indicate evolving needs. 4. Sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific cost breakdowns, but the total award value over nearly 7 years suggests a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The 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 likely resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer value.
Public Impact
Taxpayers may have overpaid due to the absence of competition. The specific sensor suite's capabilities and necessity are not detailed. Long-term support contracts require robust oversight to ensure value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency on specific deliverables
Positive Signals
- Established vendor with likely relevant expertise
- Long-term support indicates a critical need
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector, which supports the broader aerospace and defense industry. Spending in this area is often driven by specific platform needs and technological advancements.
Small Business Impact
The awardee, Northrop Grumman Systems Corporation, is a large business. There is no indication of small business participation in this specific contract.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency. Oversight effectiveness is difficult to assess without more detail on performance reviews and cost audits, especially given the sole-source nature.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for overpayment due to sole-source award.
- Cost-plus contract type increases financial risk.
- Lack of competitive bidding limits price transparency.
- Long contract duration without clear competition raises concerns.
- Limited public information on specific deliverables and oversight.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF OPEN SKIES SENSOR SUITE SUPPORT
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 $28.2 million.
What is the period of performance?
Start: 2014-10-01. End: 2021-03-31.
What was the justification for the sole-source award, and were alternatives considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can meet the requirement. Without specific documentation, it's unclear if alternatives were thoroughly explored or if the justification was solely based on the existing provider's perceived monopoly on the required sensor suite support.
How was the 'fixed fee' component determined in this Cost Plus Fixed Fee contract to ensure fair pricing?
In a Cost Plus Fixed Fee (CPFF) contract, the fixed fee is negotiated upfront and represents the contractor's profit. Determining this fee fairly involves assessing the complexity of the work, the risks involved, and the contractor's proposed profit margin. Robust negotiation and benchmarking against similar services are crucial to prevent excessive fees.
What specific performance metrics were used to evaluate the effectiveness of the Open Skies Sensor Suite support over its 7-year duration?
Effectiveness would be measured by the reliability, accuracy, and operational readiness of the sensor suite and its support. Key metrics could include uptime percentages, response times for maintenance, successful mission data acquisition rates, and adherence to technical specifications. The absence of detailed performance reports makes a definitive assessment challenging.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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
Address: 1304 CONCOURSE DR STE 400, LINTHICUM HEIGHTS, MD, 21090
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: $28,916,099
Exercised Options: $28,875,966
Current Obligation: $28,233,973
Actual Outlays: $533,063
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-10-01
Current End Date: 2021-03-31
Potential End Date: 2021-03-31 00:00:00
Last Modified: 2023-11-01
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