DoD's $38.2M contract for AN/ASQ-230 sensor support awarded to Northrop Grumman without competition
Contract Overview
Contract Amount: $38,247,540 ($38.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-12-17
End Date: 2022-12-16
Contract Duration: 1,460 days
Daily Burn Rate: $26.2K/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 $38.2 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. Value for money is difficult to assess due to sole-source award and lack of competitive bidding. 2. Competition dynamics are limited, as the contract was not competed, raising concerns about price discovery. 3. Risk indicators include potential for cost overruns and reduced innovation due to lack of market pressure. 4. Performance context is for ongoing support of a specific sensor system, implying a need for specialized expertise. 5. Sector positioning is within defense aerospace manufacturing and support services.
Value Assessment
Rating: questionable
Assessing value for money is challenging without competitive benchmarks. The $38.2 million award over four years for support and services for the AN/ASQ-230 sensor suggests a significant investment. Without comparable contract data or a competitive bidding process, it's difficult to determine if this price represents a fair market value or if taxpayers are receiving optimal value. The firm-fixed-price structure offers some cost certainty, but the lack of competition limits the ability to benchmark pricing effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source can provide the required supplies or services. The lack of competition means there were no other bidders to compare against, which can limit price discovery and potentially lead to higher costs for the government. The justification for a sole-source award would need to be robust to ensure fair pricing and necessity.
Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the best possible prices for taxpayers. This can result in higher overall spending compared to a competitively bid contract.
Public Impact
The primary beneficiary is the Department of Defense, specifically the Air Force, which relies on the AN/ASQ-230 sensor system for its operations. Services delivered include support and maintenance for the AN/ASQ-230 sensor, ensuring its operational readiness. The geographic impact is likely concentrated where the Air Force operates aircraft equipped with this sensor. Workforce implications may involve specialized technical personnel required for sensor maintenance and support, potentially employed by Northrop Grumman.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to inflated pricing over the contract duration.
- Sole-source awards can reduce transparency and accountability in government spending.
- Dependence on a single contractor for critical support could pose supply chain risks.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Award to an established contractor like Northrop Grumman may indicate access to specialized expertise.
- Contract duration of four years allows for stable planning and execution of support services.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the manufacturing and support of advanced sensor systems. The market for such specialized defense components is often characterized by high barriers to entry, proprietary technology, and a limited number of qualified suppliers. Spending in this area is driven by national security requirements and technological advancements in defense capabilities. Comparable spending benchmarks would typically involve other sole-source or limited-competition contracts for similar high-tech defense systems.
Small Business Impact
There is no indication that this contract included small business set-asides. As a sole-source award to a large defense contractor, it is unlikely to have direct subcontracting opportunities for small businesses unless Northrop Grumman voluntarily includes them in its supply chain. This contract does not appear to contribute to the small business ecosystem in a direct manner.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and financial management oversight mechanisms. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver services at an agreed-upon price. Transparency may be limited due to the sole-source nature of the award, but contract details and performance reports are usually available through government contract databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense Logistics Agency (DLA) support contracts
- Air Force weapon system sustainment programs
- Naval Air Systems Command (NAVAIR) support contracts
- Intelligence, Surveillance, and Reconnaissance (ISR) platform support
Risk Flags
- Sole-source award lacks competitive justification.
- Potential for unbenchmarked pricing.
- Limited transparency in contract negotiation.
Tags
defense, department-of-defense, department-of-the-air-force, northrop-grumman-systems-corporation, sole-source, firm-fixed-price, support-services, sensor-systems, aerospace, california, fy2018, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.2 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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $38.2 million.
What is the period of performance?
Start: 2018-12-17. End: 2022-12-16.
What is the historical spending trend for the AN/ASQ-230 sensor system support?
Historical spending data for the AN/ASQ-230 sensor system support prior to this $38.2 million award is not explicitly detailed in the provided data. However, the nature of the award (sole-source, firm-fixed-price, four-year duration) suggests a continuation or expansion of existing support requirements. To understand the trend, one would need to examine previous contracts, delivery orders, or task orders related to this specific sensor system issued by the Department of the Air Force or other relevant DoD entities. Analyzing the annual spending, contract types (e.g., cost-plus, fixed-price), and the number of contractors involved in prior periods would reveal whether spending has been consistent, increasing, or decreasing, and if competition has historically been present or absent for this system's sustainment.
How does the per-unit cost of support for the AN/ASQ-230 compare to similar sensor systems within the DoD?
A direct per-unit cost comparison for the AN/ASQ-230 sensor support is not feasible with the provided data. The contract value of $38.2 million covers a broad scope of 'support and services' over four years, without specifying the number of units supported or the exact nature of the services (e.g., maintenance, upgrades, training). To perform such a comparison, detailed breakdowns of service costs, the number of sensors under contract, and the specific support activities would be required. Furthermore, identifying truly comparable sensor systems in terms of complexity, age, and operational role within the DoD is crucial. Benchmarking would necessitate access to proprietary cost data from multiple contractors and agencies, which is typically not publicly available, especially for sole-source awards.
What is Northrop Grumman's track record with sole-source contracts for similar defense systems?
Northrop Grumman, as a major defense contractor, has a significant history of receiving both competed and sole-source contracts across various defense platforms. Their track record with sole-source awards for similar systems often stems from possessing unique technological capabilities, existing production lines, or being the original equipment manufacturer (OEM) with specialized knowledge. While specific data on their sole-source performance for analogous sensor systems isn't provided here, their overall performance is generally evaluated through contract close-outs, past performance reviews, and government accountability office (GAO) reports. Agencies often justify sole-source awards to large, established companies like Northrop Grumman when unique expertise or system integration is critical, though this practice can draw scrutiny regarding cost-effectiveness and competition.
What are the key performance indicators (KPIs) used to measure the success of this AN/ASQ-230 support contract?
The specific Key Performance Indicators (KPIs) for this AN/ASQ-230 support contract are not detailed in the provided summary. However, typical KPIs for defense system support contracts often include metrics such as: Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), system availability rates (uptime percentage), on-time delivery of parts and services, contractor response time to issues, and adherence to maintenance schedules. For a firm-fixed-price contract, the primary measure of success is the contractor's ability to provide the agreed-upon services within the specified timeframe and budget, ensuring the sensor system meets its operational readiness requirements as defined by the Air Force. Performance would likely be monitored through regular reporting and potentially formal reviews.
What is the potential impact of this sole-source award on future competition for AN/ASQ-230 related services?
This sole-source award could potentially stifle future competition for AN/ASQ-230 related services. By granting the contract exclusively to Northrop Grumman without a competitive process, other potential service providers or even Northrop Grumman itself (if it were competing against others) are precluded from demonstrating their capabilities and offering potentially more cost-effective solutions. This can create a long-term dependency on the incumbent contractor, making it harder for new entrants to gain a foothold or for the government to solicit competitive bids in the future. Unless specific provisions are made to encourage broader market engagement or technology refresh, the path of least resistance might remain a sole-source continuation.
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
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: $41,229,050
Exercised Options: $41,229,050
Current Obligation: $38,247,540
Actual Outlays: $411,639
Subaward Activity
Number of Subawards: 271
Total Subaward Amount: $203,870,135
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: 2018-12-17
Current End Date: 2022-12-16
Potential End Date: 2022-12-16 00:00:00
Last Modified: 2025-07-02
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)