DoD Awards Northrop Grumman $15.3M for Saudi Arabia Logistics Support
Contract Overview
Contract Amount: $15,359,465 ($15.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-27
End Date: 2026-12-31
Contract Duration: 1,191 days
Daily Burn Rate: $12.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LOGISITICS SUPPORT IN SUPPORT OF THE JOINT THREAT EMITTER FOR THE KINGDOM OF SAUDI ARABIA.
Place of Performance
Location: BUFFALO, ERIE County, NEW YORK, 14221
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $15.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LOGISITICS SUPPORT IN SUPPORT OF THE JOINT THREAT EMITTER FOR THE KINGDOM OF SAUDI ARABIA. Key points: 1. Contract awarded to Northrop Grumman for essential logistics support. 2. The contract is for the Joint Threat Emitter system. 3. No competition was available for this award. 4. The sector is primarily IT and Defense-related equipment maintenance.
Value Assessment
Rating: fair
The award amount of $15.3 million for a 3.2-year contract appears reasonable given the specialized nature of the equipment and support required. However, without competitive bidding, it's difficult to definitively assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not available for competition, indicating a sole-source or limited-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been openly competed.
Public Impact
Supports critical defense technology for a key international partner. Ensures operational readiness of specialized electronic equipment. Potential for increased costs due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
Positive Signals
- Supports critical defense system
- Long-term support contract
Sector Analysis
This contract falls within the Defense sector, specifically related to electronic equipment repair and maintenance. Spending benchmarks for similar specialized logistics support can vary widely, but non-competitive awards often trend higher.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. The prime contractor is a large corporation, and the nature of the support may not lend itself to subcontracting opportunities for smaller entities.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight will be crucial to ensure the contractor delivers the required logistics support effectively and within the agreed-upon terms, especially given the non-competitive nature of the award.
Related Government Programs
- Other Electronic and Precision Equipment Repair and Maintenance
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Reliance on a single contractor for critical support
- Limited transparency into pricing
Tags
other-electronic-and-precision-equipment, department-of-defense, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LOGISITICS SUPPORT IN SUPPORT OF THE JOINT THREAT EMITTER FOR THE KINGDOM OF SAUDI ARABIA.
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 $15.4 million.
What is the period of performance?
Start: 2023-09-27. End: 2026-12-31.
What is the justification for the limited competition on this contract?
The justification for limited competition is not provided in the data. Typically, such justifications cite reasons like unique capabilities, urgent needs, or the unavailability of other sources. Further investigation would be needed to understand the specific rationale behind not opening this contract to a broader range of bidders.
What are the risks associated with a sole-source award for critical defense logistics?
Sole-source awards carry risks of inflated pricing due to the absence of competitive pressure. There's also a potential for reduced innovation and less incentive for the contractor to optimize performance. For critical defense logistics, this could impact operational readiness and increase long-term sustainment costs for the government.
How will the effectiveness of the logistics support be measured and ensured?
Effectiveness will likely be measured through performance metrics outlined in the contract's statement of work, such as response times, equipment uptime, and successful maintenance actions. The Air Force contracting officer and technical representatives will monitor Northrop Grumman's performance against these metrics and conduct regular reviews.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
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: $15,359,465
Exercised Options: $15,359,465
Current Obligation: $15,359,465
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA821018D0001
IDV Type: IDC
Timeline
Start Date: 2023-09-27
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-01-08
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