DoD Awards $48.9M Northrop Grumman Contract for AN/ASQ-230 Sensor Support
Contract Overview
Contract Amount: $48,857,383 ($48.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-06-23
End Date: 2026-06-22
Contract Duration: 364 days
Daily Burn Rate: $134.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AN/ASQ-230 SENSOR SUPPORT AND SUSTAINMENT
Place of Performance
Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95119
Plain-Language Summary
Department of Defense obligated $48.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: AN/ASQ-230 SENSOR SUPPORT AND SUSTAINMENT Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on specialized sensor support and sustainment. 3. Potential for limited competition due to specialized nature. 4. Spending falls within professional, scientific, and technical services sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar sensor sustainment contracts is difficult without more detailed cost breakdowns.
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 compared to a competitive process.
Taxpayer Impact: The lack of competition for this $48.9M contract may result in taxpayers paying a premium for the sensor support and sustainment services.
Public Impact
Ensures continued operational readiness of critical Air Force sensor systems. Supports advanced technological capabilities for national defense. Potential impact on future procurement strategies for similar systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type carries inherent cost risk.
- Lack of detailed cost data for benchmarking.
Positive Signals
- Essential for maintaining critical defense capabilities.
- Long-term sustainment ensures system longevity.
Sector Analysis
This contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. Spending in this sector can vary widely, but specialized defense support often commands premium pricing due to unique requirements and limited vendor pools.
Small Business Impact
The awardee is a large corporation, and there is no indication of small business participation in this specific contract. Opportunities for small businesses may lie in subcontracting roles, which are not detailed here.
Oversight & Accountability
The Department of the Air Force is the awarding agency. Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure value for money, especially given the sole-source nature of the award.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency on cost drivers
Tags
all-other-professional-scientific-and-te, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. AN/ASQ-230 SENSOR SUPPORT AND SUSTAINMENT
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 $48.9 million.
What is the period of performance?
Start: 2025-06-23. End: 2026-06-22.
What specific technical capabilities does the AN/ASQ-230 sensor system provide, and how critical are they to current Air Force operations?
The AN/ASQ-230 is a critical component for intelligence, surveillance, and reconnaissance (ISR) missions, providing advanced sensor data processing and analysis. Its capabilities are vital for maintaining situational awareness and supporting tactical decision-making across various Air Force platforms, directly impacting operational effectiveness and national security.
What is the justification for awarding this contract on a sole-source basis, and what steps are being taken to mitigate potential cost overruns?
The sole-source justification likely stems from the highly specialized nature of the AN/ASQ-230 system, requiring unique expertise held by Northrop Grumman. To mitigate cost risks associated with the Cost Plus Fixed Fee structure, the Air Force must implement rigorous oversight, detailed cost tracking, and performance metrics to ensure efficient resource utilization and prevent unnecessary expenditures.
How does the sustainment of the AN/ASQ-230 sensor system contribute to the overall readiness and modernization efforts of the Air Force?
Sustaining the AN/ASQ-230 ensures the continued operational readiness of vital ISR capabilities, preventing degradation of performance and extending the system's useful life. This directly supports current mission requirements and allows the Air Force to maintain its technological edge while planning for future modernization, ensuring that critical sensor data remains available for effective defense operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $48,857,383
Exercised Options: $48,857,383
Current Obligation: $48,857,383
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $517,754
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA852822D0013
IDV Type: IDC
Timeline
Start Date: 2025-06-23
Current End Date: 2026-06-22
Potential End Date: 2026-06-22 00:00:00
Last Modified: 2025-06-26
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