DoD's $26.3M Northrop Grumman contract for Joint Threat Emitter Enhanced Delivery Initiative shows strong competition

Contract Overview

Contract Amount: $26,349,000 ($26.3M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2019-08-16

End Date: 2021-08-18

Contract Duration: 733 days

Daily Burn Rate: $35.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: INDEFINITE DELIVERY, INDEFINITE QUANTITY PRODUCTION ORDER IN SUPPORT OF THE JOINT THREAT EMITTER ENHANCED DELIVERY INITIATIVE CONTRACT.

Place of Performance

Location: BUFFALO, ERIE County, NEW YORK, 14221

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $26.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: INDEFINITE DELIVERY, INDEFINITE QUANTITY PRODUCTION ORDER IN SUPPORT OF THE JOINT THREAT EMITTER ENHANCED DELIVERY INITIATIVE CONTRACT. Key points: 1. Contract awarded to a single, established defense contractor, indicating a focus on specialized capabilities. 2. The contract's value is moderate within the context of large defense procurements, suggesting a targeted scope. 3. Performance period of two years with potential for follow-on work implies ongoing need for these systems. 4. The 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code points to a high-tech, specialized sector. 5. Firm Fixed Price contract type helps mitigate cost overrun risks for the government. 6. The contract was awarded under full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: good

The contract value of $26.3 million for an IDIQ production order appears reasonable given the specialized nature of the Joint Threat Emitter Enhanced Delivery Initiative. Benchmarking against similar complex defense system procurements would provide further context, but the firm fixed-price structure suggests an effort to control costs. The award to Northrop Grumman, a major defense contractor, implies a certain level of established pricing and capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The government sought proposals from all responsible sources, maximizing the opportunity for diverse solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider range of contractors to participate, potentially leading to more cost-effective solutions.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Air Force, which will receive enhanced threat emitter systems. These systems are crucial for training and readiness, simulating adversary threats for military personnel. The geographic impact is likely national, supporting military training exercises across various bases. The contract supports jobs within the aerospace and defense manufacturing sector, particularly at Northrop Grumman and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this system becomes highly specialized and difficult to replace.
Reliance on a single large contractor may limit future competition for upgrades or sustainment.
The complexity of the technology could lead to unforeseen sustainment costs beyond the initial procurement.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Firm Fixed Price contract type provides cost certainty.
Northrop Grumman is an established defense contractor with a track record in complex systems.
The contract supports critical defense training and readiness capabilities.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on electronic warfare and simulation systems. The market for such specialized defense equipment is characterized by high barriers to entry, significant R&D investment, and a primary customer base of government entities. Spending in this sub-sector is driven by evolving threat landscapes and the need for realistic training environments. Comparable spending benchmarks would involve other contracts for advanced simulation, electronic warfare, or radar systems.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there information on subcontracting plans. Given the award to a large prime contractor like Northrop Grumman, the focus is likely on large-scale production capabilities. Any subcontracting would likely involve specialized components or services sourced from other large or mid-tier companies within the defense industrial base.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures are embedded in the contract terms, including delivery schedules and performance specifications. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Joint Threat Emitter Program
Electronic Warfare Systems
Defense Simulation and Training Systems
Air Force Procurement Contracts
Northrop Grumman Defense Contracts

Risk Flags

Potential for technology obsolescence
Integration complexity with existing systems
Cybersecurity vulnerabilities in advanced systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. INDEFINITE DELIVERY, INDEFINITE QUANTITY PRODUCTION ORDER IN SUPPORT OF THE JOINT THREAT EMITTER ENHANCED DELIVERY INITIATIVE CONTRACT.

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $26.3 million.

What is the period of performance?

Start: 2019-08-16. End: 2021-08-18.

What is the historical spending trend for the Joint Threat Emitter Enhanced Delivery Initiative program?

Analyzing historical spending for the Joint Threat Emitter Enhanced Delivery Initiative requires access to detailed program data beyond this single IDIQ production order. However, the presence of an IDIQ contract suggests a program with a sustained need for these systems. The initial award value of $26.3 million for this specific order indicates a significant investment. To understand the trend, one would need to examine prior contracts, task orders under this IDIQ, and any related programs that fulfill similar threat simulation roles. Factors influencing spending trends include evolving military threats, technological advancements in emitter systems, and overall defense budget allocations for training and readiness.

How does the pricing of this contract compare to similar threat emitter systems procured by the DoD?

Directly comparing the pricing of this $26.3 million contract to similar threat emitter systems is challenging without specific details on system capabilities, quantities, and the competitive landscape for those other systems. However, the award to Northrop Grumman under full and open competition suggests a market-driven price. If other similar systems were procured through sole-source contracts or from less experienced vendors, their pricing might differ significantly. A thorough benchmark would involve analyzing the per-unit cost, factoring in complexity, technological sophistication, and the specific threat simulation capabilities offered. The firm fixed-price nature of this contract provides a degree of cost certainty compared to cost-plus contracts.

What are the key performance indicators (KPIs) associated with this contract, and how is performance being measured?

Key performance indicators (KPIs) for this contract are not explicitly detailed in the provided data but are typically defined within the contract's Statement of Work (SOW) and delivery schedules. For an IDIQ production order supporting the Joint Threat Emitter Enhanced Delivery Initiative, KPIs would likely focus on aspects such as on-time delivery of systems, adherence to technical specifications and quality standards, system reliability and performance in simulated environments, and potentially the fidelity of the threats simulated. Performance measurement would involve regular reviews by the Air Force contracting officer and technical representatives, acceptance testing of delivered units, and potentially post-delivery operational feedback.

What is Northrop Grumman's track record with similar defense simulation and electronic warfare contracts?

Northrop Grumman has a substantial and well-established track record in developing and producing advanced defense systems, including those related to electronic warfare, simulation, and radar technology. The company is a major defense contractor with extensive experience in complex aerospace and defense programs for the U.S. military and international allies. Their portfolio often includes sophisticated systems for intelligence, surveillance, reconnaissance (ISR), electronic attack, and electronic warfare. This background suggests they possess the technical expertise, manufacturing capacity, and program management experience necessary to execute a contract for advanced threat emitter systems effectively.

Are there any identified risks associated with the technology or deployment of these Joint Threat Emitters?

Risks associated with advanced technologies like Joint Threat Emitters can include technical maturity, integration challenges with existing military platforms, and the potential for obsolescence as threat technologies evolve. For this specific contract, potential risks might involve ensuring the emitters accurately replicate a wide range of modern threats, the reliability of the systems in diverse operational environments, and the cybersecurity of the systems themselves. The two-year performance period suggests a focus on production and delivery, implying that the core technology has likely undergone significant development and testing prior to this award. However, ongoing risk management would be crucial throughout the contract lifecycle.

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: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $26,349,000

Exercised Options: $26,349,000

Current Obligation: $26,349,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA821019D0001

IDV Type: IDC

Timeline