DoD's $749M Northrop Grumman IDIQ for Joint Threat Emitter Enhancement faces scrutiny over competition and value
Contract Overview
Contract Amount: $74,904,234 ($74.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-03-24
End Date: 2026-04-01
Contract Duration: 2,199 days
Daily Burn Rate: $34.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: INDEFINITE DELIVERY, INDEFINITE QUANTITY CONTRACT 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 $74.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: INDEFINITE DELIVERY, INDEFINITE QUANTITY CONTRACT IN SUPPORT OF THE JOINT THREAT EMITTER ENHANCED DELIVERY INITIATIVE CONTRACT. Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for $749M. 2. Supports the Joint Threat Emitter Enhanced Delivery Initiative. 3. Competition method is 'Full and Open', but specific task orders may vary. 4. Sector is IT/Defense, with a focus on system manufacturing.
Value Assessment
Rating: fair
The total award value is substantial at $749M. Without specific task order data, it's difficult to benchmark pricing against similar contracts or assess true value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the IDIQ structure means individual delivery orders could potentially have less competitive pricing depending on the specific requirements.
Taxpayer Impact: The significant award value suggests a substantial taxpayer investment. Ensuring competitive pricing on individual delivery orders is crucial to maximize taxpayer value.
Public Impact
Enhances critical defense capabilities for threat emitter systems. Supports advanced technology development and manufacturing within the defense sector. Long-term contract (2026 end date) indicates sustained need for these capabilities. Potential for follow-on contracts or expanded scope.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of transparency on individual delivery order pricing.
- Potential for scope creep in a long-term IDIQ.
- Reliance on a single large contractor for critical systems.
Positive Signals
- Awarded under full and open competition.
- Supports a key defense initiative.
- Long contract duration provides stability.
Sector Analysis
This contract falls within the Defense sector, specifically IT and system manufacturing. Spending benchmarks for similar IDIQ contracts supporting advanced weapon systems can vary widely based on technological complexity and program scope.
Small Business Impact
While the prime contractor is Northrop Grumman Systems Corporation, there is no explicit information provided regarding small business participation in this contract. Further investigation into subcontracting opportunities would be necessary.
Oversight & Accountability
The IDIQ structure requires diligent oversight of each delivery order to ensure fair pricing and adherence to the original scope. The Department of the Air Force is responsible for this oversight.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed cost data for individual delivery orders.
- Potential for cost escalation over the contract's lifespan.
- Limited insight into small business subcontracting.
- Dependency on a single large contractor for critical systems.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. INDEFINITE DELIVERY, INDEFINITE QUANTITY CONTRACT 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 $74.9 million.
What is the period of performance?
Start: 2020-03-24. End: 2026-04-01.
What is the average cost per unit or service delivered under this IDIQ, and how does it compare to industry benchmarks for similar threat emitter systems?
Detailed cost data per unit or service is not publicly available for this IDIQ contract. Benchmarking is challenging without specific task order details. However, given the advanced nature of threat emitter technology and the prime contractor's expertise, costs are likely to be significant. Further analysis of individual delivery orders would be required to establish meaningful comparisons.
What are the primary risks associated with the long-term nature of this IDIQ contract, and what mitigation strategies are in place?
Key risks include potential cost overruns due to evolving requirements, contractor lock-in, and the possibility of technology obsolescence over the contract's duration. Mitigation strategies likely involve robust contract management, regular performance reviews, and clear definition of requirements for each delivery order to prevent scope creep and ensure continued relevance of the technology.
How effectively does this contract support the 'Joint Threat Emitter Enhanced Delivery Initiative' goals, and what is the measurable impact on warfighter capabilities?
The contract's effectiveness is tied to its ability to deliver enhanced threat emitter systems as intended by the initiative. While the contract's existence suggests progress, measurable impacts on warfighter capabilities are not detailed in the provided data. Success would be demonstrated through improved training realism, enhanced electronic warfare capabilities, and successful integration into joint operations.
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: $74,904,234
Exercised Options: $74,904,234
Current Obligation: $74,904,234
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $24,388,605
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
Start Date: 2020-03-24
Current End Date: 2026-04-01
Potential End Date: 2026-04-01 00:00:00
Last Modified: 2025-12-16
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