DoD awards Northrop Grumman $70.4M for Proximity Switch Logic Unit F3 Phase 3
Contract Overview
Contract Amount: $70,411,717 ($70.4M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2019-07-31
End Date: 2023-11-30
Contract Duration: 1,583 days
Daily Burn Rate: $44.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROXIMITY SWITCH LOGIC UNIT (PSLU) FORM, FIT, AND FUNCTION (F3) PHASE 3
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550
Plain-Language Summary
Department of Defense obligated $70.4 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: PROXIMITY SWITCH LOGIC UNIT (PSLU) FORM, FIT, AND FUNCTION (F3) PHASE 3 Key points: 1. Contract awarded to Northrop Grumman Systems Corp for Aircraft Manufacturing. 2. Significant duration of 1583 days suggests a complex, long-term project. 3. The contract is a Firm Fixed Price type, indicating price certainty. 4. No small business participation noted, potentially limiting broader economic impact.
Value Assessment
Rating: fair
The award amount of $70.4M for a 1583-day duration needs further context. Benchmarking against similar complex electronic component development contracts would be necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Without competition, the government may not have achieved the best possible price or terms.
Taxpayer Impact: The lack of competition raises concerns about potential overspending and reduced value for taxpayer funds.
Public Impact
Impacts Air Force aircraft readiness and maintenance capabilities. Supports a major defense contractor, potentially influencing industry dynamics. Limited transparency due to sole-source nature may hinder public understanding of costs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- No small business participation
Positive Signals
- Firm Fixed Price contract type
- Long-term award provides stability
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically for electronic components. Spending benchmarks in this niche area are difficult to ascertain without more detailed project scope.
Small Business Impact
The contract data indicates no small business participation. This suggests that opportunities for small businesses in this specific procurement were either not sought or not met.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. Accountability for performance and cost control is crucial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in cost justification
- No small business involvement
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.4 million to NORTHROP GRUMMAN SYSTEMS CORP. PROXIMITY SWITCH LOGIC UNIT (PSLU) FORM, FIT, AND FUNCTION (F3) PHASE 3
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN 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 $70.4 million.
What is the period of performance?
Start: 2019-07-31. End: 2023-11-30.
What specific technical capabilities or unique intellectual property held by Northrop Grumman necessitated a sole-source award for the PSLU F3 Phase 3?
A sole-source award typically implies that only one responsible source is capable of meeting the government's requirements. This could be due to proprietary technology, unique expertise, or critical integration needs with existing systems. Further justification documents from the agency would detail these specific reasons, often related to national security or essential operational continuity.
How does the $70.4M award for the Proximity Switch Logic Unit F3 Phase 3 compare to industry benchmarks for similar complex electronic component development and manufacturing over a 1583-day period?
Without specific details on the PSLU's complexity, performance requirements, and technological sophistication, a direct cost comparison is challenging. However, for long-duration, high-tech defense component contracts, costs can range significantly. Benchmarking would require access to proprietary cost data or similar government contracts for comparable systems, which is often not publicly available.
What are the potential risks associated with a sole-source, firm-fixed-price contract for a long-duration project like the PSLU F3 Phase 3?
The primary risk of a sole-source, firm-fixed-price contract is the potential for the contractor to overcharge due to the absence of competition, even with a fixed price. For long durations, scope creep or unforeseen technical challenges could strain the fixed price, potentially leading to contract modifications or disputes. The government also bears the risk if the contractor's costs escalate beyond initial projections.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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: 3520 E AVE M, PALMDALE, CA, 93550
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $70,411,717
Exercised Options: $70,411,717
Current Obligation: $70,411,717
Subaward Activity
Number of Subawards: 44
Total Subaward Amount: $1,017,418,403
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA861614D6060
IDV Type: IDC
Timeline
Start Date: 2019-07-31
Current End Date: 2023-11-30
Potential End Date: 2023-11-30 00:00:00
Last Modified: 2023-11-07
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