DoD's $209M Joint Threat Emitter Contract Awarded to Northrop Grumman Under Full and Open Competition
Contract Overview
Contract Amount: $208,961,946 ($209.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2013-09-09
End Date: 2019-06-27
Contract Duration: 2,117 days
Daily Burn Rate: $98.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JOINT THREAT EMITTER (JTE)
Place of Performance
Location: BUFFALO, ERIE County, NEW YORK, 14221
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $209.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: JOINT THREAT EMITTER (JTE) Key points: 1. Significant investment in advanced defense systems. 2. Northrop Grumman, a major defense contractor, secured the award. 3. Full and open competition suggests a competitive bidding process. 4. The contract spans multiple years, indicating a long-term need.
Value Assessment
Rating: good
The contract value of $209 million over approximately 6 years appears reasonable given the specialized nature of the Joint Threat Emitter system. Benchmarking against similar complex defense systems is difficult without more specific cost breakdowns.
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 had the opportunity to compete. This method is expected to drive competitive pricing and ensure the government receives fair value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely benefiting from a price discovery process that aims for efficiency.
Public Impact
Enhances military training and readiness by simulating advanced threats. Supports the development and deployment of sophisticated electronic warfare capabilities. Contributes to the technological superiority of U.S. defense forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex, long-term defense contracts.
- Dependence on a single contractor for critical system components.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type limits cost risk to the government.
- Long-term contract indicates sustained strategic importance.
Sector Analysis
This contract falls within the defense sector, specifically focusing on electronic warfare and simulation systems. Spending in this area is critical for maintaining military technological advantage and readiness against evolving threats.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial to ensure performance, quality, and adherence to contract terms.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration increases risk of obsolescence.
- Potential for scope creep in complex defense systems.
- Dependence on a single prime contractor.
- Lack of explicit small business participation noted.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $209.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. JOINT THREAT EMITTER (JTE)
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 $209.0 million.
What is the period of performance?
Start: 2013-09-09. End: 2019-06-27.
What is the specific technological advancement this Joint Threat Emitter provides over previous systems, and how does it justify the $209 million investment?
The Joint Threat Emitter (JTE) likely provides advanced capabilities in simulating a wider range of sophisticated enemy radar and electronic warfare threats. This allows for more realistic and effective training scenarios for military personnel, enhancing their preparedness against modern adversaries. The investment is justified by the need to maintain a technological edge and ensure combat readiness in a rapidly evolving threat landscape.
What are the primary risks associated with the long-term sustainment and potential obsolescence of the JTE system, given its 2013 award date?
The primary risks include the potential for the JTE system to become technologically obsolete as threat environments evolve, requiring costly upgrades or replacements. Long-term sustainment could also face challenges if key components become difficult to source or if the original manufacturer's support diminishes. Ensuring ongoing modernization and maintaining a robust supply chain are critical to mitigating these risks over the contract's lifespan.
How effectively does the firm fixed price contract type mitigate cost overruns for the government on this complex system?
The Firm Fixed Price (FFP) contract type is designed to transfer most of the cost risk to the contractor, Northrop Grumman. This means the government pays a set price regardless of the contractor's actual costs. While FFP is generally effective in controlling costs, complex defense systems can still experience cost overruns if unforeseen technical challenges arise, leading to contract modifications or disputes. However, it provides a strong baseline for cost predictability.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1740 WEHRLE DR, BUFFALO, NY, 14221
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: $231,628,874
Exercised Options: $208,969,075
Current Obligation: $208,961,946
Actual Outlays: $6,022,945
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-09-09
Current End Date: 2019-06-27
Potential End Date: 2019-06-27 00:00:00
Last Modified: 2025-09-16
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