DoD Awards Northrop Grumman $530M for Munitions Reprogramming Equipment Support Through 2026
Contract Overview
Contract Amount: $5,303,736 ($5.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-10-30
End Date: 2026-04-30
Contract Duration: 547 days
Daily Burn Rate: $9.7K/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 $5.3 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 long-term reliance on incumbent. 4. Limited visibility into specific performance metrics.
Value Assessment
Rating: fair
The contract value of $530M over approximately 1.5 years suggests a significant investment. Benchmarking against similar logistics support contracts for specialized defense equipment is difficult without more granular data on scope and deliverables.
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 compared to a competitive environment.
Taxpayer Impact: Taxpayer funds are committed without competitive pressure, raising concerns about cost-effectiveness and value for money.
Public Impact
Ensures operational readiness of critical munitions. Supports advanced electronic warfare and testing capabilities. Maintains specialized technical expertise within the supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Limited transparency on cost drivers
Positive Signals
- Essential for national defense
- Supports critical infrastructure
- Long-term sustainment
Sector Analysis
This contract falls within the defense sector, specifically supporting electronic test equipment for munitions. Spending in this area is often characterized by high specialization and long procurement cycles, with limited competition due to unique technical requirements.
Small Business Impact
The contract does not indicate any specific provisions or set-asides for small businesses. The nature of the work likely favors large, established defense contractors with specialized capabilities.
Oversight & Accountability
Oversight is managed by the Department of the Air Force. The sole-source nature of the award warrants close scrutiny to ensure fair pricing and effective performance.
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
- Lack of competitive bidding
- Potential for cost overruns
- Limited market competition
- Dependency on a single contractor
Tags
instrument-manufacturing-for-measuring-a, department-of-defense, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.3 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 $5.3 million.
What is the period of performance?
Start: 2024-10-30. End: 2026-04-30.
What is the justification for the sole-source award, and what steps are being taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. To ensure fair pricing, the procuring agency should conduct thorough market research, independent cost estimates, and robust negotiation strategies. Regular performance reviews and audits are also crucial to monitor cost efficiency and contractor performance throughout the contract lifecycle.
How does the cost of this contract compare to similar sustainment or reprogramming equipment contracts for other munitions systems?
Direct cost comparison is challenging without detailed scope and deliverable information for other munitions systems. However, the $530M value over 1.5 years for specialized logistics and production support suggests a high per-unit cost, typical for advanced defense systems. Benchmarking against contracts with similar complexity and duration, while accounting for inflation and technological advancements, would be necessary for a meaningful assessment.
What are the long-term implications for technological advancement and competition in the munitions reprogramming equipment sector?
Sole-source contracts can stifle innovation and competition by locking in incumbent providers, potentially leading to technology stagnation. To mitigate this, the DoD could explore strategies like phased procurements, incentivizing contractor innovation, or investing in independent research and development to foster alternative solutions and maintain a competitive landscape for future requirements.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
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: $5,303,736
Exercised Options: $5,303,736
Current Obligation: $5,303,736
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: 2024-10-30
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-12-17
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