DoD Awards $7.4M for LITENING ATP Targeting Pods to Northrop Grumman, Undermining Competition
Contract Overview
Contract Amount: $7,412,453 ($7.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-10-03
End Date: 2026-03-31
Contract Duration: 544 days
Daily Burn Rate: $13.6K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LITENING ATP TARGETING PODS
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $7.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LITENING ATP TARGETING PODS Key points: 1. The Department of the Air Force awarded a $7.4 million contract for LITENING ATP Targeting Pods. 2. Northrop Grumman Systems Corporation is the sole awardee, raising concerns about competition. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The Engineering Services sector is experiencing significant defense spending.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, coupled with a lack of competition, raises concerns about potential cost inefficiencies and overpayment compared to market benchmarks for similar advanced targeting systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competitive bidding on this significant contract likely results in a higher expenditure of taxpayer funds than would be achieved through a competitive process.
Public Impact
Taxpayers may be overpaying for critical defense technology due to the absence of competition. The reliance on a single supplier for advanced targeting pods could create long-term dependency and limit future innovation. The Department of Defense's procurement practices in this instance warrant closer scrutiny to ensure fiscal responsibility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing
Positive Signals
- Essential defense technology acquisition
- Contract awarded to established defense contractor
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to defense systems. Benchmarks for similar advanced targeting pod contracts are difficult to ascertain due to the sole-source nature of this award.
Small Business Impact
This contract was not awarded to a small business. The sole-source nature of the award further limits opportunities for small businesses to participate in this procurement.
Oversight & Accountability
The non-competitive award of this contract raises questions about the effectiveness of oversight mechanisms designed to ensure fair and open competition in defense procurement.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPFF)
- Limited transparency in pricing
- Dependency on a single supplier
- No small business participation
Tags
engineering-services, department-of-defense, il, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LITENING ATP 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 $7.4 million.
What is the period of performance?
Start: 2024-10-03. End: 2026-03-31.
What is the justification for not competing this contract, and what steps are being taken to ensure fair pricing?
The justification for not competing this contract is not provided in the data. However, the use of a Cost Plus Fixed Fee structure suggests a potential for cost overruns. Further oversight is needed to validate the pricing and ensure it aligns with fair market value, especially given the lack of competitive bids.
What are the long-term risks associated with a sole-source award for critical targeting pod technology?
The primary long-term risks include potential price escalation over time, reduced incentive for the sole provider to innovate or improve the technology, and a lack of strategic flexibility for the Department of Defense should supply chain issues or geopolitical factors affect the single provider. This also limits opportunities for alternative solutions.
How does this procurement align with the Department of Defense's stated goals for promoting competition and cost-effectiveness?
This sole-source award appears to contradict the Department of Defense's stated goals of promoting competition and achieving cost-effectiveness. The lack of a competitive bidding process suggests a missed opportunity to leverage market forces for better pricing and potentially more innovative solutions, raising concerns about overall procurement efficiency.
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: 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: $7,412,453
Exercised Options: $7,412,453
Current Obligation: $7,412,453
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $384,323
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: 2024-10-03
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-01-12
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