DoD Awards $52.7M for Advanced Targeting Pods to Northrop Grumman, Raising Competition Concerns
Contract Overview
Contract Amount: $52,672,420 ($52.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-04-29
End Date: 2024-11-29
Contract Duration: 1,310 days
Daily Burn Rate: $40.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LITENING ADVACED TARGETING PODS
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $52.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LITENING ADVACED TARGETING PODS Key points: 1. Significant contract value for critical defense technology. 2. Sole-source award to Northrop Grumman limits competitive pricing. 3. Potential for cost overruns with Cost Plus Fixed Fee contract type. 4. Engineering services sector sees substantial investment.
Value Assessment
Rating: questionable
The $52.7 million award for LITENING Advanced Targeting Pods is a substantial sum. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar advanced targeting pod contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and may lead to higher costs for the government.
Taxpayer Impact: The absence of competition on this significant contract could result in taxpayers paying more than necessary for essential defense equipment.
Public Impact
Enhances air combat capabilities for the Air Force. Supports advanced surveillance and precision strike missions. Potential impact on future defense procurement strategies due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of competition
Positive Signals
- Critical defense technology
- Long-term contract duration
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to defense systems. Spending benchmarks for advanced targeting pods can vary widely based on technological sophistication and competition.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small business participation was considered or if opportunities were missed.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and effective use of taxpayer funds. Robust oversight is needed to monitor contract performance and costs.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type increases cost risk.
- Potential for higher-than-market pricing.
- Lack of small business participation noted.
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 $52.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LITENING ADVACED 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 $52.7 million.
What is the period of performance?
Start: 2021-04-29. End: 2024-11-29.
What is the justification for the sole-source award of the LITENING Advanced Targeting Pods?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. Without further details on the specific requirements and market research conducted by the Department of the Air Force, it is difficult to ascertain the precise reasons. However, sole-source awards inherently reduce competitive pressure, potentially impacting cost-effectiveness.
What are the risks associated with a Cost Plus Fixed Fee contract for advanced targeting pods?
Cost Plus Fixed Fee (CPFF) contracts carry inherent risks for the government, primarily related to cost overruns. While the contractor is incentivized to control costs to maximize their fixed fee, there's less pressure than in fixed-price contracts. The government bears the risk of increased costs, and the fixed fee may not adequately compensate for the contractor's efforts if unforeseen complexities arise.
How does the lack of competition impact the long-term effectiveness and affordability of advanced targeting pods?
A lack of competition can stifle innovation and lead to higher prices over the long term. Without the pressure to compete on price and performance, contractors may have less incentive to invest in R&D or offer cost-saving measures. This can result in the government paying a premium for technology that could potentially be acquired at a lower cost through a competitive process.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA854021R0002
Pricing Type: COST PLUS FIXED FEE (U)
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: $52,672,420
Exercised Options: $52,672,420
Current Obligation: $52,672,420
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $5,401,605
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: 2021-04-29
Current End Date: 2024-11-29
Potential End Date: 2024-11-29 00:00:00
Last Modified: 2024-09-30
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)