DoD Spends $50.7M on Northrop Grumman's LITENING Targeting Pod, Awarded Sole-Source
Contract Overview
Contract Amount: $50,745,277 ($50.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-12-10
End Date: 2024-09-30
Contract Duration: 1,390 days
Daily Burn Rate: $36.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LITENING COMPREHENSIVE ADVANCED TARGETING POD
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $50.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LITENING COMPREHENSIVE ADVANCED TARGETING POD Key points: 1. Significant investment in advanced targeting technology for defense. 2. Sole-source award to Northrop Grumman raises questions about competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Engineering services sector, with a focus on defense applications.
Value Assessment
Rating: fair
The total award of $50.7M for the LITENING pod is substantial. Without comparable contract data for similar advanced targeting pods, a precise pricing assessment is difficult. However, the sole-source nature suggests potential for less favorable pricing than a competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating that only one vendor, Northrop Grumman, was considered capable of fulfilling the requirement. This significantly limits price discovery and competitive pressure, potentially leading to higher costs for the government.
Taxpayer Impact: Taxpayers may bear a higher cost for this critical defense system due to the absence of competitive bidding, impacting the overall value for money.
Public Impact
Enhances precision strike capabilities for military aircraft. Supports ongoing defense operations and national security objectives. Investment in advanced sensor technology for intelligence, surveillance, and reconnaissance (ISR).
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for cost overruns if not closely monitored.
Positive Signals
- Acquisition of advanced, critical defense technology.
- Supports modernization of military assets.
- Long-term contract duration ensures sustained capability.
Sector Analysis
The Department of Defense frequently procures advanced engineering services and complex systems like targeting pods. Spending benchmarks for such specialized defense equipment are often high, but competitive sourcing is key to achieving optimal value.
Small Business Impact
This contract was awarded to a large corporation, Northrop Grumman Systems Corporation. There is no indication of small business participation in this specific award, suggesting limited opportunities for small businesses in this particular procurement.
Oversight & Accountability
The Department of Defense, through its contracting agencies, is responsible for overseeing this contract. Robust oversight is crucial to ensure the contractor meets performance requirements and that the sole-source justification remains valid throughout the contract's life.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost inefficiencies
- Limited small business involvement
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 $50.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LITENING COMPREHENSIVE ADVANCED TARGETING POD
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $50.7 million.
What is the period of performance?
Start: 2020-12-10. End: 2024-09-30.
What is the justification for the sole-source award, and has it been reviewed for continued validity?
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. Regular reviews are essential to ensure that the market has not evolved to allow for competitive sourcing and that the government is not unnecessarily paying a premium.
How does the unit cost of this LITENING pod compare to similar systems procured competitively?
Without access to specific unit cost data for comparable systems acquired through competitive bidding, a direct comparison is challenging. However, sole-source procurements generally tend to have higher unit costs due to the absence of competitive pressure to reduce prices and improve efficiency. Further analysis would require benchmarking against other advanced targeting pods.
What is the long-term strategy for acquiring advanced targeting pods, and will future procurements include competitive elements?
The long-term strategy for acquiring critical defense systems like targeting pods should ideally involve a mix of competitive and sole-source awards, depending on technological advancements and market dynamics. Future procurements should be evaluated for opportunities to introduce competition to drive innovation and cost savings, ensuring the best value for taxpayer funds.
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: $50,848,440
Exercised Options: $50,848,440
Current Obligation: $50,745,277
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $1,297,604
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: 2020-12-10
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-04-15
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