DoD Awards Northrop Grumman $124.9M Contract for Munitions Reprogramming Equipment Support
Contract Overview
Contract Amount: $12,490,810 ($12.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-07-25
End Date: 2026-03-31
Contract Duration: 980 days
Daily Burn Rate: $12.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: COMMON MUNITIONS BUILT-IN-TEST REPROGRAMMING EQUIPMENT (CMBRE) CONTRACTOR LOGISTICS SUPPORT (CLS) AND PRODUCTION CONTRACT.
Place of Performance
Location: NORTHRIDGE, LOS ANGELES County, CALIFORNIA, 91324
Plain-Language Summary
Department of Defense obligated $12.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: COMMON MUNITIONS BUILT-IN-TEST REPROGRAMMING EQUIPMENT (CMBRE) CONTRACTOR LOGISTICS SUPPORT (CLS) AND PRODUCTION CONTRACT. Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on specialized equipment for munitions. 3. Potential for limited competition due to specialized nature. 4. Long-term support contract extending over two years.
Value Assessment
Rating: fair
The contract value of $124.9 million for a 980-day period suggests a significant investment. Benchmarking against similar logistics support contracts for specialized defense equipment is difficult without more granular data on the scope of services and specific equipment covered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process. The specific justification for the sole-source award is not provided.
Taxpayer Impact: The lack of competition for this substantial contract raises concerns about potential overspending and the efficient use of taxpayer funds.
Public Impact
Ensures readiness of critical munitions by maintaining reprogramming equipment. Supports ongoing Air Force operations and modernization efforts. Impacts the defense industrial base and supply chain for specialized electronics. Potential for cost overruns due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price transparency.
- Long-term contract duration may mask inefficiencies.
- Lack of detailed cost breakdown for services.
Positive Signals
- Ensures critical equipment maintenance for national security.
- Supports a key defense contractor's operations.
Sector Analysis
This contract falls within the defense sector, specifically related to specialized electronic equipment manufacturing and maintenance. Spending benchmarks for similar contractor logistics support for munitions systems are highly variable and depend on system complexity and service scope.
Small Business Impact
The contract data indicates no specific set-aside for small businesses. Given the sole-source nature and the prime contractor, it is unlikely that small businesses will be directly involved in significant subcontracting opportunities unless mandated by Northrop Grumman.
Oversight & Accountability
Oversight will be crucial to ensure Northrop Grumman delivers on its contractual obligations and that costs remain within reasonable bounds, despite the lack of initial competition. The Department of the Air Force is responsible for monitoring performance and expenditures.
Related Government Programs
- Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Potential for cost overruns without competition.
- Lack of transparency in pricing justification.
- Long contract duration may hinder technological adaptation.
Tags
instrument-manufacturing-for-measuring-a, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. COMMON MUNITIONS BUILT-IN-TEST REPROGRAMMING EQUIPMENT (CMBRE) CONTRACTOR LOGISTICS SUPPORT (CLS) AND PRODUCTION CONTRACT.
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 $12.5 million.
What is the period of performance?
Start: 2023-07-25. End: 2026-03-31.
What is the specific justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically relates to unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without this specific justification, it's difficult to assess. To ensure fair pricing, the Air Force might employ techniques like cost realism analyses, comparison to similar historical contracts, or negotiation with the contractor to achieve a reasonable price, though these are less effective than open competition.
How will the long-term nature of this contract impact the government's ability to adapt to evolving technological requirements for munitions reprogramming?
Long-term contracts can sometimes create inertia, making it challenging to incorporate rapid technological advancements. The government should ensure the contract includes flexibility clauses or periodic reviews to allow for adjustments based on new technologies or changing operational needs. Failure to do so could result in outdated equipment or inefficient reprogramming capabilities, impacting overall defense readiness.
What is the estimated cost per unit or per service hour, and how does this compare to industry benchmarks for similar support services?
The provided data does not include a per-unit cost or service hour rate, making direct comparison to industry benchmarks impossible. The total contract value of $124.9 million over 980 days averages approximately $127,449 per day. Without knowing the specific services rendered daily (e.g., number of technicians, types of repairs, software updates), this daily rate is not a meaningful benchmark.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 9401 CORBIN AVE, NORTHRIDGE, CA, 91324
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: $12,490,810
Exercised Options: $12,490,810
Current Obligation: $12,490,810
Subaward Activity
Number of Subawards: 32
Total Subaward Amount: $4,514,901
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA853321D0001
IDV Type: IDC
Timeline
Start Date: 2023-07-25
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2025-12-03
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