DoD awards Northrop Grumman $109.9M for HTVSF Fuze Systems, impacting Ammunition Manufacturing
Contract Overview
Contract Amount: $109,920,683 ($109.9M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2019-09-06
End Date: 2025-04-06
Contract Duration: 2,039 days
Daily Burn Rate: $53.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HARD TARGET VOID SENSING FUZE (HTVSF) FMU-167/B SYSTEM PROCUREMENT FOR FULL RATE PRODUCTION LOT 2 AND 3
Place of Performance
Location: KEYSER, MINERAL County, WEST VIRGINIA, 26726
Plain-Language Summary
Department of Defense obligated $109.9 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: HARD TARGET VOID SENSING FUZE (HTVSF) FMU-167/B SYSTEM PROCUREMENT FOR FULL RATE PRODUCTION LOT 2 AND 3 Key points: 1. Contract awarded to Northrop Grumman Systems Corp for HTVSF Fuze Systems. 2. Procurement covers Full Rate Production Lots 2 and 3. 3. The contract is a Firm Fixed Price type. 4. This award falls under the Ammunition (except Small Arms) Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $109.9M for HTVSF Fuze Systems appears to be a significant investment. Benchmarking against similar advanced ordnance fuzes would be necessary to assess pricing competitiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Without competition, there is a reduced opportunity for price discovery and potentially higher costs for the government.
Taxpayer Impact: Taxpayer funds are being allocated to a sole-source procurement, which may not represent the best value achievable through a competitive process.
Public Impact
Ensures continued production of critical ammunition components for the Air Force. Supports advanced sensing technology in munitions. Potential for long-term reliance on a single supplier for this specialized component.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement limits competitive pricing.
- Lack of competition may lead to higher costs.
- Long-term contract duration could lock in pricing.
Positive Signals
- Ensures supply of critical defense technology.
- Supports advanced fuze system development.
Sector Analysis
This procurement falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of national defense. Spending in this area is often driven by specific program needs and technological advancements.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corp, a large business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The Department of the Air Force is the procuring agency. Oversight will be crucial to ensure performance and cost control, especially given the sole-source nature of the award.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Long-term contract duration
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, wv, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $109.9 million to NORTHROP GRUMMAN SYSTEMS CORP. HARD TARGET VOID SENSING FUZE (HTVSF) FMU-167/B SYSTEM PROCUREMENT FOR FULL RATE PRODUCTION LOT 2 AND 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 $109.9 million.
What is the period of performance?
Start: 2019-09-06. End: 2025-04-06.
What is the historical cost performance of the HTVSF Fuze System and how does it compare to similar advanced fuzes?
Historical cost data for the HTVSF Fuze System is not provided. A comprehensive analysis would require benchmarking against other advanced fuze systems procured by the DoD or allied nations. Factors like technological complexity, production volume, and specific performance requirements influence pricing, making direct comparisons challenging without detailed specifications.
What are the risks associated with a sole-source procurement for this critical defense component?
Sole-source procurement carries inherent risks, including the potential for inflated pricing due to lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a lack of alternative suppliers if issues arise. This can lead to higher long-term costs for taxpayers and potential supply chain vulnerabilities.
How does the firm fixed price contract structure mitigate or exacerbate cost risks for the government?
A firm fixed price (FFP) contract shifts most of the cost risk to the contractor, providing the government with cost certainty. However, in a sole-source scenario, the initial price is negotiated without competitive pressure. If the negotiated price is too high, the government may overpay, even with an FFP structure. The benefit of FFP is realized when the contractor can achieve efficiencies and increase their profit margin, but the risk lies in the initial price negotiation.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA868118R0039
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 210 STATE ROUTE 956, ROCKET CENTER, WV, 26726
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: $109,920,683
Exercised Options: $109,920,683
Current Obligation: $109,920,683
Actual Outlays: $10,010,843
Subaward Activity
Number of Subawards: 75
Total Subaward Amount: $65,406,994
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-09-06
Current End Date: 2025-04-06
Potential End Date: 2025-04-06 00:00:00
Last Modified: 2024-06-10
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