DoD Awards Northrop Grumman $66.7M for GFE RADAR Systems, Lacking Competition
Contract Overview
Contract Amount: $66,653,559 ($66.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2006-01-03
End Date: 2013-09-30
Contract Duration: 2,827 days
Daily Burn Rate: $23.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: GFE RADAR FOR PEACE XENIA IV
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $66.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: GFE RADAR FOR PEACE XENIA IV Key points: 1. Significant contract value of $66.7 million awarded to a single large corporation. 2. Lack of competition suggests potential for higher costs and reduced innovation. 3. Long contract duration (2006-2013) raises questions about ongoing need and evolving technology. 4. The sector is critical for defense, but the procurement method warrants scrutiny.
Value Assessment
Rating: questionable
The contract value of $66.7 million for GFE RADAR systems is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or alternative solutions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition scenario. This significantly limits price discovery and may lead to inflated costs for taxpayers.
Taxpayer Impact: The absence of competition likely resulted in higher costs than a fully competitive process would have yielded, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The long contract period could mean the technology is outdated or no longer the most cost-effective solution. Reliance on a single vendor for critical radar systems could pose a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Sole-Source Award
- Long Contract Duration
- Potential for Overpricing
Positive Signals
- Critical Defense System
- Established Contractor
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for national security, but competitive procurement is vital to ensure value for money.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large defense contractor. There is no indication that small businesses were involved in this specific award, suggesting a missed opportunity for their participation.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' designation requires thorough justification and oversight to ensure it was indeed the only viable procurement path. Post-award reviews would be essential to assess value and performance.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of Competition
- Sole-Source Award
- Potential for Overpricing
- Long Contract Duration
- Limited Small Business Participation
- Lack of Transparency in Award Justification
Tags
search-detection-navigation-guidance-aer, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $66.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. GFE RADAR FOR PEACE XENIA IV
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 $66.7 million.
What is the period of performance?
Start: 2006-01-03. End: 2013-09-30.
What was the specific justification for awarding this contract on a non-competitive basis, and were alternative solutions or vendors ever considered?
The justification for a 'NOT AVAILABLE FOR COMPETITION' award typically involves factors like unique capabilities, urgent needs, or lack of market availability. Without access to the specific documentation, it's impossible to confirm the exact reasons. However, a thorough review would examine if these justifications were valid and if any market research was conducted to explore other potential sources, even if initially deemed unsuitable.
How does the per-unit cost or overall contract value compare to similar radar systems procured competitively by the DoD or other agencies during the contract period?
Benchmarking this contract's value against competitively procured radar systems is challenging without specific unit cost data and detailed system specifications. However, the absence of competition inherently suggests a higher likelihood of inflated costs. A comparative analysis would require access to detailed procurement data for similar systems, factoring in technological advancements and performance metrics over the contract's lifespan.
Given the contract's end date in 2013, what is the current status and effectiveness of the GFE RADAR systems procured under this award, and has the DoD transitioned to newer, potentially more cost-eff
The contract concluded in 2013, indicating that the systems procured are now over a decade old. Assessing their current effectiveness and cost-efficiency requires understanding the operational lifespan of such equipment and the DoD's subsequent procurement strategies. It's probable that the Department has since invested in newer radar technologies, but the long-term value of this specific award depends on the systems' continued utility and the cost of maintenance versus replacement.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 1580A NURSERY RD, LINTHICUM HEIGHTS, MD, 21090
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $507,647,103
Exercised Options: $98,352,059
Current Obligation: $66,653,559
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-01-03
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2019-04-30
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