DoD awards $37.9M for AN/ASQ-230 sensor support, a sole-source contract to Northrop Grumman
Contract Overview
Contract Amount: $37,937,506 ($37.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2017-12-23
End Date: 2018-12-22
Contract Duration: 364 days
Daily Burn Rate: $104.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF FY2018 ANNUAL ORDER FOR SUPPORT AND SERVICES FOR THE AN/ASQ-230 SENSOR.
Place of Performance
Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95119
Plain-Language Summary
Department of Defense obligated $37.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF FY2018 ANNUAL ORDER FOR SUPPORT AND SERVICES FOR THE AN/ASQ-230 SENSOR. Key points: 1. Contract value of $37.9M for FY2018. 2. Sole-source award to Northrop Grumman Systems Corporation. 3. Focuses on support and services for the AN/ASQ-230 sensor. 4. Falls under the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing NAICS code.
Value Assessment
Rating: questionable
The contract value of $37.9M for a single year of support for a specific sensor system appears high without competitive benchmarking. Pricing assessment is difficult due to the lack of competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure.
Taxpayer Impact: The lack of competition may result in the government paying a premium for these support services, impacting taxpayer funds.
Public Impact
Military readiness may be impacted if the AN/ASQ-230 sensor is critical and support is not cost-effective. Taxpayers may be overpaying for specialized sensor support due to the absence of competitive bidding. Dependence on a single contractor for essential system support raises long-term sustainment concerns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Specific sensor system support
- Defined contract period
Sector Analysis
This contract falls within the defense sector, specifically for specialized sensor systems. Spending benchmarks for similar sole-source support contracts are difficult to ascertain without competitive data, but typically, sole-source awards are scrutinized for cost-effectiveness.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award was made directly to a large corporation.
Oversight & Accountability
The contract was awarded by the Department of Defense through the Defense Contract Management Agency. Oversight would focus on contract performance and adherence to terms, but the lack of competition limits price oversight.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in price determination.
- Risk of contractor lock-in.
- No small business participation evident.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF FY2018 ANNUAL ORDER FOR SUPPORT AND SERVICES FOR THE AN/ASQ-230 SENSOR.
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $37.9 million.
What is the period of performance?
Start: 2017-12-23. End: 2018-12-22.
What is the justification for the sole-source award of this contract?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives. Without further documentation, it's difficult to assess if these criteria were met, but it's a key area for review to ensure taxpayer funds are used efficiently and effectively.
What is the potential cost impact of this sole-source award compared to a competitive process?
Sole-source contracts often result in higher costs for the government compared to competitive awards. Without competition, the contractor faces less pressure to offer the lowest possible price. This can lead to significant overspending for taxpayers over the life of the contract.
Are there plans to introduce competition for future support or services related to the AN/ASQ-230 sensor?
Exploring options for future competition, such as breaking down the requirement or seeking alternative solutions, is crucial for long-term cost savings. Agencies should actively assess the market to identify potential competitors and foster a more competitive environment.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA852817R0013
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 6379 SAN IGNACIO AVE, SAN JOSE, CA, 95119
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: $38,440,161
Exercised Options: $38,440,161
Current Obligation: $37,937,506
Subaward Activity
Number of Subawards: 362
Total Subaward Amount: $224,578,459
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852817D0013
IDV Type: IDC
Timeline
Start Date: 2017-12-23
Current End Date: 2018-12-22
Potential End Date: 2018-12-22 00:00:00
Last Modified: 2023-05-25
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