DoD's $53.6M AN/ALQ-131 upgrade contract awarded to Northrop Grumman for electronic warfare systems
Contract Overview
Contract Amount: $53,621,756 ($53.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2016-11-18
End Date: 2023-07-31
Contract Duration: 2,446 days
Daily Burn Rate: $21.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: IGF::OT::IGF AN/ALQ-131 DIGITAL RECIEVER EXCITER UPGRADE INSTALLS AND KITS
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $53.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF AN/ALQ-131 DIGITAL RECIEVER EXCITER UPGRADE INSTALLS AND KITS Key points: 1. Value for money assessed through comparison with similar EW system upgrades. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include the long duration of the contract and the complexity of EW system integration. 4. Performance context is within the Air Force's broader electronic warfare modernization efforts. 5. Sector positioning is within the defense industrial base, specifically electronic warfare and avionics. 6. The contract's cost-plus-no-fee structure requires careful oversight to manage expenditures.
Value Assessment
Rating: fair
The total contract value of $53.6 million for the AN/ALQ-131 digital receiver exciter upgrade appears within a reasonable range for complex electronic warfare system modernization. However, without specific details on the scope of work for each installation and kit, a precise value-for-money assessment is challenging. Benchmarking against other similar EW system upgrade contracts would provide a clearer picture of whether the pricing reflects competitive market rates for the technology and services provided. The cost-plus-no-fee (CPNF) pricing arrangement necessitates robust government oversight to ensure costs are controlled and justified.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple capable vendors had the opportunity to bid. The specific number of bidders is not provided, but a full and open process generally fosters a competitive environment, which can lead to more favorable pricing and innovative solutions for the government. The success of the competition in driving down costs would depend on the number and strength of the competing offers.
Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value by allowing a wide range of contractors to compete, potentially leading to lower prices and higher quality.
Public Impact
The primary beneficiaries are the U.S. Air Force, enhancing the electronic warfare capabilities of its aircraft. Services delivered include the installation and kits for upgrading the AN/ALQ-131 digital receiver exciter. Geographic impact is likely concentrated at Air Force bases where the upgrades are performed and on aircraft operating globally. Workforce implications involve skilled technicians and engineers for the installation and integration of sophisticated electronic warfare systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-no-fee contract type requires diligent oversight to prevent cost overruns.
- Long contract duration (over 7 years) may introduce risks related to technology obsolescence or changing requirements.
- Complexity of electronic warfare systems can lead to integration challenges and performance issues.
Positive Signals
- Awarded under full and open competition, indicating a potentially competitive pricing environment.
- Northrop Grumman is an established defense contractor with significant experience in electronic warfare systems.
- The upgrade addresses critical electronic warfare capabilities, enhancing platform survivability and mission effectiveness.
Sector Analysis
The defense electronics sector is a significant segment of the aerospace and defense industry, characterized by high R&D investment and long product lifecycles. Electronic warfare systems, like the AN/ALQ-131, are crucial for modern military operations, providing capabilities for threat detection, jamming, and deception. Spending in this area is driven by the need to maintain technological superiority against evolving adversary capabilities. Comparable spending benchmarks would involve other major upgrades to airborne electronic warfare suites or similar avionics modernization programs across different military branches.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Northrop Grumman, as a large prime contractor, may engage small businesses for subcontracting opportunities related to specific components or services. However, the primary awardee is a large corporation, suggesting that the direct impact on the small business ecosystem through this specific prime contract is limited unless significant subcontracting plans are in place and executed.
Oversight & Accountability
Oversight for this contract is primarily the responsibility of the Department of the Air Force contracting and program management offices. Given the cost-plus-no-fee structure, rigorous financial oversight is essential to monitor expenditures and ensure costs are reasonable and allocable to the contract. Transparency is facilitated through contract award databases, but detailed performance reports and cost breakdowns are typically internal government documents. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse.
Related Government Programs
- AN/ALQ-131 Electronic Warfare System
- Airborne Electronic Warfare Programs
- Avionics Modernization Contracts
- Defense Electronic Systems Integration
- Northrop Grumman Defense Contracts
Risk Flags
- Cost-Plus-No-Fee Contract Type
- Long Contract Duration
- Complex System Integration
- Potential for Technology Obsolescence
Tags
defense, department-of-defense, air-force, electronic-warfare, avionics, northrop-grumman, full-and-open-competition, cost-plus-no-fee, system-upgrade, georgia, engineering-services, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF AN/ALQ-131 DIGITAL RECIEVER EXCITER UPGRADE INSTALLS AND KITS
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 $53.6 million.
What is the period of performance?
Start: 2016-11-18. End: 2023-07-31.
What is Northrop Grumman's track record with AN/ALQ-131 or similar electronic warfare system upgrades?
Northrop Grumman has a long history and extensive experience in developing, manufacturing, and supporting electronic warfare (EW) systems, including upgrades and sustainment for various platforms. They are a major player in the defense sector, particularly in areas like radar, electronic support measures (ESM), and electronic countermeasures (ECM). The AN/ALQ-131 is a well-established system, and Northrop Grumman has been involved in its evolution and modernization. Their track record typically includes successful integration of complex systems onto military aircraft, adherence to stringent military specifications, and managing large-scale defense contracts. Specific performance metrics for past AN/ALQ-131 related contracts would require deeper data dives, but their overall standing as a prime defense contractor suggests a capability to execute such programs, albeit with the inherent risks associated with complex defense acquisitions.
How does the $53.6 million cost compare to similar EW system upgrade contracts?
Comparing the $53.6 million cost directly to similar EW system upgrade contracts requires access to a broader dataset of comparable procurements. Factors influencing cost include the specific upgrade (e.g., digital receiver exciter vs. full system replacement), the platform it's integrated onto, the number of units being upgraded, and the level of engineering and testing involved. Generally, upgrades to sophisticated electronic warfare systems can range from tens to hundreds of millions of dollars, depending on complexity and scale. The 'full and open competition' award suggests an effort to achieve competitive pricing. However, without specific details on the scope of work per unit and the number of units included in this $53.6 million award, a precise benchmark is difficult. A cost-plus-no-fee structure also implies that the government is bearing the cost of performance plus a fee, necessitating careful monitoring to ensure value.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks associated with this contract include technical complexity, potential for cost overruns due to the cost-plus-no-fee (CPNF) structure, schedule delays, and the possibility of technology obsolescence over the contract's long duration (over 7 years). Technical risks stem from integrating upgraded digital receiver exciters into existing AN/ALQ-131 systems, which can involve intricate hardware and software challenges. The CPNF structure, while allowing flexibility, requires robust government oversight to scrutinize costs and prevent inefficiencies. Mitigation strategies typically involve detailed technical specifications, phased delivery schedules with performance checkpoints, strong program management by the Air Force, and potentially contract clauses that incentivize cost control and timely delivery. Regular reviews and audits by the contracting officer and potentially the Defense Contract Audit Agency (DCAA) are crucial for managing financial risks.
How effective is the AN/ALQ-131 system, and how does this upgrade contribute to its effectiveness?
The AN/ALQ-131 is a widely used, modular airborne electronic warfare (EW) system designed to protect aircraft from radar-guided threats by detecting, identifying, and jamming enemy radar signals. Its effectiveness lies in its ability to provide situational awareness and defensive countermeasures, thereby increasing aircraft survivability. This specific upgrade focuses on the digital receiver exciter, which is a critical component responsible for processing incoming radar signals and generating jamming responses. By upgrading to a digital receiver exciter, the system's sensitivity, accuracy, and processing speed are likely enhanced. This modernization allows the AN/ALQ-131 to better detect and counter newer, more sophisticated radar threats, ensuring the system remains relevant and effective against evolving adversary capabilities. The upgrade contributes to maintaining the platform's combat effectiveness in contested electromagnetic environments.
What are the historical spending patterns for the AN/ALQ-131 program or similar EW upgrades?
Historical spending patterns for the AN/ALQ-131 program and similar EW upgrades within the Department of Defense typically show consistent investment over decades, reflecting the enduring need for electronic warfare capabilities. The AN/ALQ-131 itself has undergone numerous upgrades and sustainment efforts since its initial fielding. Spending often occurs through a mix of contract types, including fixed-price for hardware and cost-plus for development and complex integration. Major upgrade programs for EW systems can represent significant portions of defense budgets, often awarded to large, established defense contractors. Annual spending can fluctuate based on modernization priorities, threat assessments, and congressional appropriations. The total lifecycle cost for such systems, including initial procurement, upgrades, sustainment, and eventual retirement, can run into billions of dollars over their service life.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA854016R0011
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,621,766
Exercised Options: $53,621,756
Current Obligation: $53,621,756
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA822212D0018
IDV Type: IDC
Timeline
Start Date: 2016-11-18
Current End Date: 2023-07-31
Potential End Date: 2023-07-31 00:00:00
Last Modified: 2019-12-11
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