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

State: Connecticut Government Spending

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: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, 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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