DoD's $35.8M AN/APN241 Equipment Buy Awarded to Northrop Grumman
Contract Overview
Contract Amount: $35,866,063 ($35.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2009-09-30
End Date: 2012-12-31
Contract Duration: 1,188 days
Daily Burn Rate: $30.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AN/APN241 EQUIPMENT BUY
Place of Performance
Location: NORWALK, FAIRFIELD County, CONNECTICUT, 06855
Plain-Language Summary
Department of Defense obligated $35.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: AN/APN241 EQUIPMENT BUY Key points: 1. Significant contract value for specialized aerospace equipment. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Sector: Defense - Navigation and Guidance Systems.
Value Assessment
Rating: questionable
The contract value of $35.8 million for AN/APN241 equipment is substantial. Without competitive data, it's difficult to assess if this price is optimal compared to similar systems or previous procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. This limits price discovery and may result in less favorable terms for the government.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for this equipment.
Public Impact
Ensures continued operational capability for Air Force aircraft relying on AN/APN241 systems. Supports a major defense contractor, potentially impacting jobs and the defense industrial base. Highlights reliance on specific vendors for critical aerospace components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpricing
Positive Signals
- Ensures availability of critical equipment
- Supports established contractor
Sector Analysis
This procurement falls within the Defense sector, specifically for navigation and guidance systems. Spending in this area is critical for military readiness but often involves high-value, specialized contracts.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting a focus on large, established defense contractors for this specific equipment.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and justification for not seeking competitive bids. Oversight is needed to confirm the necessity of this approach.
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
- Sole-source award
- Lack of competitive bidding
- Potential for price escalation
- Limited transparency in pricing justification
Tags
search-detection-navigation-guidance-aer, department-of-defense, ct, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. AN/APN241 EQUIPMENT BUY
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 $35.9 million.
What is the period of performance?
Start: 2009-09-30. End: 2012-12-31.
What is the justification for awarding this contract sole-source to Northrop Grumman?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or the unavailability of alternative sources. Without specific documentation, it's presumed the Air Force determined Northrop Grumman was the only viable provider for the AN/APN241 equipment at the time of award.
What is the risk associated with a sole-source procurement of this magnitude?
The primary risk is the potential for inflated pricing due to the absence of competitive pressure. This can lead to inefficient use of taxpayer funds. Additionally, it can foster vendor lock-in and reduce incentives for the sole provider to innovate or reduce costs over time.
How does this procurement impact the overall effectiveness of the Air Force's navigation systems?
This procurement ensures the continued availability and maintenance of the AN/APN241 system, which is crucial for the operational effectiveness of the aircraft it equips. However, the lack of competition might indirectly affect long-term effectiveness if it leads to higher sustainment costs or slower adoption of newer technologies.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Huntington Ingalls Industries, Inc (UEI: 967362331)
Address: 10 NORDEN PL, NORWALK, CT, 04
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,866,063
Exercised Options: $35,866,063
Current Obligation: $35,866,063
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-30
Current End Date: 2012-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2011-03-03
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