Dod Awards Northrop Grumman $31.16M for Litening Catp Artemis Phase 2B

Contract Overview

Contract Amount: $31,159,252 ($31.2M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2026-01-05

End Date: 2027-09-30

Contract Duration: 633 days

Daily Burn Rate: $49.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LITENING CATP ARTEMIS PHASE 2B

Place of Performance

Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $31.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LITENING CATP ARTEMIS PHASE 2B Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for engineering services. 2. Significant award value of over $31 million. 3. Contract is for the LITENING CATP ARTEMIS Phase 2B. 4. Performance period extends from January 2026 to September 2027.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award value is substantial, but without specific deliverables or benchmarks, assessing its value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers compared to a fully competed contract.

Public Impact

Supports advanced targeting pod technology for the Air Force. Potential for technological advancements in military aviation. Long-term sustainment and development of critical defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
  • Lack of clear performance metrics makes value assessment challenging.

Positive Signals

  • Supports critical defense technology development.
  • Long-term contract provides stability for the contractor.

Sector Analysis

This contract falls under Engineering Services, a broad category often associated with defense and aerospace. Spending in this sector can be substantial, driven by complex technological requirements and long development cycles.

Small Business Impact

This award went to a large prime contractor, Northrop Grumman Systems Corporation. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and effective execution. Robust monitoring by the Department of the Air Force is crucial.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Sole-source award lacks competitive pressure.
  • Cost Plus Fixed Fee contract is prone to cost overruns.
  • Limited transparency on specific deliverables and performance metrics.
  • Potential for contractor to leverage unique position for higher profits.

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 $31.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LITENING CATP ARTEMIS PHASE 2B

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 $31.2 million.

What is the period of performance?

Start: 2026-01-05. End: 2027-09-30.

What specific technological advancements or capabilities are expected from LITENING CATP ARTEMIS Phase 2B, and how do they justify the sole-source award and cost-plus fixed fee structure?

The specific advancements are not detailed, but Phase 2B likely focuses on enhancing the LITENING targeting pod's capabilities, potentially including improved resolution, expanded sensor suites, or advanced data processing. The sole-source award suggests unique expertise or proprietary technology held by Northrop Grumman. The cost-plus fixed fee structure is often used for development efforts where final costs are uncertain, aiming to incentivize completion while allowing for flexibility.

What is the benchmark cost for similar engineering services contracts for advanced targeting pod development, and how does this award compare?

Benchmarking is difficult without specific details on the scope and complexity of Phase 2B. However, targeting pod development is a high-cost area due to advanced sensor technology and integration. The $31.16 million award over approximately 21 months suggests a significant investment. A comparison would require access to historical data on similar sole-source, cost-plus contracts for advanced defense systems.

What measures are in place to ensure effective oversight and accountability for this sole-source, cost-plus fixed fee contract to mitigate risks of cost overruns and ensure delivery of intended capabi

Effective oversight typically involves detailed contract clauses, regular progress reviews, independent cost analysis, and performance metrics. For this contract, the Department of the Air Force must actively monitor expenditures, validate contractor progress against milestones, and ensure that the fixed fee remains appropriate. Robust communication channels and clear reporting requirements are essential to maintain accountability.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: $31,159,252

Exercised Options: $31,159,252

Current Obligation: $31,159,252

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: 2026-01-05

Current End Date: 2027-09-30

Potential End Date: 2027-09-30 00:00:00

Last Modified: 2026-03-16

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