DoD awards $50.6M for LITENING Advanced Targeting Pods to Northrop Grumman, citing sole-source justification
Contract Overview
Contract Amount: $50,581,391 ($50.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-01-01
End Date: 2023-03-31
Contract Duration: 1,185 days
Daily Burn Rate: $42.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LITENING ADVANCED TARGETING PODS
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $50.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LITENING ADVANCED TARGETING PODS Key points: 1. Significant investment in advanced targeting technology for the Air Force. 2. Sole-source award to Northrop Grumman raises questions about competition and potential cost savings. 3. Risk associated with reliance on a single supplier for critical defense equipment. 4. Spending falls within the Engineering Services sector, with potential for high-value contracts.
Value Assessment
Rating: questionable
The award of $50.6 million for targeting pods without competition makes a direct pricing assessment difficult. Benchmarking against similar sole-source contracts or publicly available data on comparable systems would be necessary to evaluate value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This approach limits price discovery and may result in higher costs for taxpayers compared to a fully competed procurement.
Taxpayer Impact: The absence of competition for this significant defense contract potentially leads to higher taxpayer expenditure than could be achieved through a competitive process.
Public Impact
Enhances Air Force's precision strike capabilities. Supports ongoing military operations and readiness. Potential for technological advancements in targeting systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of transparency in pricing.
- Potential for cost overruns due to no competitive pressure.
Positive Signals
- Provides critical advanced targeting technology.
- Supports Air Force operational needs.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector often characterized by specialized expertise and high-value procurements. Defense spending in this area is substantial, with benchmarks varying widely based on the complexity and nature of the services.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large defense contractor. There is no indication of small business participation in this specific award, which is common for sole-source, high-value defense procurements.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential abuses. Regular reviews of performance and cost justification are crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for inflated pricing
- Limited transparency
Tags
engineering-services, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LITENING ADVANCED TARGETING PODS
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 $50.6 million.
What is the period of performance?
Start: 2020-01-01. End: 2023-03-31.
What is the justification for the sole-source award, and has it been independently verified?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. Independent verification would involve reviewing the contracting officer's justification documentation, ensuring it meets regulatory requirements and that alternative sources were genuinely explored and found unsuitable.
What is the projected cost savings if this contract had been competitively bid?
Estimating cost savings from a hypothetical competitive bid is challenging without detailed market research. However, competitive procurements often yield savings of 10-30% compared to sole-source awards, depending on the market dynamics, number of bidders, and contract type. A thorough analysis would require benchmarking against similar systems and market prices.
How does the performance of these LITENING pods compare to similar systems from other manufacturers?
Performance comparison requires access to technical specifications, operational test results, and potentially classified data. Publicly available information suggests the LITENING pod is a mature and widely used system, but direct comparisons with competitors like the Sniper Advanced Targeting Pod would necessitate detailed technical evaluations and potentially independent testing by the DoD.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 600 HICKS RD, ROLLING MEADOWS, IL, 60008
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: $51,287,389
Exercised Options: $51,287,389
Current Obligation: $50,581,391
Actual Outlays: $6,697,273
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA854019D0001
IDV Type: IDC
Timeline
Start Date: 2020-01-01
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 00:00:00
Last Modified: 2025-09-26
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