Northrop Grumman awarded $99.9M for Pakistan Radar Unmanned Combat Aircraft systems

Contract Overview

Contract Amount: $99,871,655 ($99.9M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2006-11-15

End Date: 2014-12-31

Contract Duration: 2,968 days

Daily Burn Rate: $33.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PAKISTAN RADAR UCA

Place of Performance

Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $99.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: PAKISTAN RADAR UCA Key points: 1. Contract awarded for a critical defense system, indicating significant national security implications. 2. Sole-source award suggests potential lack of market competition or unique contractor capabilities. 3. Long contract duration (2006-2014) implies a sustained need and development cycle. 4. Firm Fixed Price contract type aims to control costs, but requires careful monitoring for scope creep. 5. Awarded by the Department of Defense, aligning with major defense procurement priorities. 6. The specific system relates to advanced radar and unmanned aerial vehicle technology.

Value Assessment

Rating: fair

The total award of $99.9 million over an 8-year period (2006-2014) averages to approximately $12.5 million per year. Without specific details on the system's capabilities, components, or the number of units procured, a direct value-for-money assessment is challenging. However, the firm fixed-price nature suggests an attempt to cap costs. Benchmarking against similar advanced radar or UAV systems would be necessary for a more precise evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when a specific contractor possesses unique capabilities, intellectual property, or when there is an urgent need that precludes a competitive process. The lack of competition means that the government did not benefit from potential price reductions or innovative solutions that might have emerged from a bidding process.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. It also limits opportunities for other companies to demonstrate their capabilities and secure government contracts.

Public Impact

The primary beneficiaries are the Department of Defense and potentially allied nations receiving advanced surveillance and combat capabilities. The services delivered include the development, integration, and sustainment of radar systems for unmanned combat aircraft. The geographic impact is primarily within defense operations, potentially extending to areas of strategic interest. Workforce implications include highly skilled engineers, technicians, and program managers within Northrop Grumman and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited innovation.
The sole-source nature restricts opportunities for small businesses to participate in this high-value contract.
Long-term sustainment costs for such advanced systems are often significant and may not be fully captured in the initial award.

Positive Signals

Award to a major defense contractor like Northrop Grumman suggests access to advanced technological capabilities.
Firm Fixed Price contract type provides cost certainty for the government, assuming well-defined requirements.
The system's focus on radar and UAV technology aligns with evolving military operational needs.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on advanced electronics and unmanned systems. The market for such technologies is characterized by high barriers to entry due to R&D costs and specialized expertise. Northrop Grumman is a major player in this space. Comparable spending benchmarks would involve analyzing other large-scale procurements for advanced radar systems or unmanned aerial vehicles by the DoD or allied governments.

Small Business Impact

As a sole-source award to a large prime contractor, this contract likely offers limited direct opportunities for small businesses through set-asides. However, Northrop Grumman may engage small businesses as subcontractors for specialized components or services. The overall impact on the small business ecosystem is likely minimal unless significant subcontracting plans are implemented and monitored.

Oversight & Accountability

Oversight would typically be managed by the Defense Contract Management Agency (DCMA) and the relevant program executive office within the Department of Defense. Accountability measures would be tied to contract milestones, performance metrics, and adherence to the firm fixed-price terms. Transparency is often limited for sole-source defense contracts involving sensitive technologies.

Related Government Programs

Unmanned Aerial Vehicle (UAV) Procurement
Advanced Radar Systems
Defense Electronics Manufacturing
Northrop Grumman Defense Contracts

Risk Flags

Sole-source award may indicate limited market availability or unique capabilities.
Long contract duration requires sustained oversight for cost and performance management.
Lack of competition could result in suboptimal pricing for taxpayers.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $99.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. PAKISTAN RADAR UCA

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 $99.9 million.

What is the period of performance?

Start: 2006-11-15. End: 2014-12-31.

What specific capabilities does the Pakistan Radar UCA system provide, and how do these capabilities compare to existing or alternative technologies?

The provided data does not detail the specific capabilities of the 'Pakistan Radar UCA' system beyond its designation as a radar system for unmanned combat aircraft. Such systems typically integrate advanced radar technologies (e.g., synthetic aperture radar, electronic warfare radar) with unmanned aerial vehicle platforms to provide persistent surveillance, reconnaissance, and potentially strike capabilities. Without further technical specifications, a direct comparison to alternative technologies is not feasible. However, the trend in defense procurement is towards increasingly sophisticated ISR (Intelligence, Surveillance, and Reconnaissance) and strike platforms, with a focus on autonomy, network-centric operations, and reduced reliance on manned aircraft. The 'Pakistan' designation might imply a specific regional focus or a system tailored for export, though this is speculative without more information.

What was the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?

Sole-source contract awards are typically justified when only one responsible source is capable of meeting the government's requirements. For advanced defense systems like radar for unmanned combat aircraft, this could be due to proprietary technology, unique integration expertise, or a critical need that cannot be fulfilled through a competitive process within the required timeframe. The specific justification for this $99.9 million contract awarded to Northrop Grumman Systems Corporation would be documented in official government procurement records, likely citing reasons such as unique technical capabilities, existing system compatibility, or national security imperatives. Without access to these records, the precise rationale remains unknown, but it is standard practice for such awards to undergo internal review to ensure necessity and explore limited competition where feasible.

How does the total contract value of $99.9 million compare to other similar radar or UAV system procurements by the Department of Defense?

The total contract value of $99.9 million for the Pakistan Radar UCA system, awarded over approximately eight years (2006-2014), represents a significant investment. To benchmark this value, one would need to compare it against other procurements for advanced radar systems or unmanned combat aerial vehicles (UCAVs). For instance, major UCAV programs like the MQ-9 Reaper or the RQ-4 Global Hawk have seen total program costs running into billions of dollars over their lifecycles, encompassing numerous aircraft and support systems. Radar system procurements, especially those integrated into advanced platforms, can also be substantial. A $99.9 million award for a specific radar system, particularly if it includes development, integration, and initial fielding, appears within the range for specialized, high-technology defense assets, but its true value comparison depends heavily on the system's specific capabilities, quantity, and the competitive landscape at the time of award.

What are the potential risks associated with a sole-source award for a complex defense system like this?

Sole-source awards for complex defense systems carry several inherent risks. Firstly, the absence of competition can lead to higher costs for taxpayers, as the contractor faces less pressure to offer the most competitive pricing. Secondly, it can stifle innovation, as there is no external incentive for the contractor to develop novel solutions or improve efficiency beyond what is contractually required. Thirdly, it can create vendor lock-in, making it difficult and expensive to switch providers or integrate alternative technologies in the future. Lastly, without the scrutiny of a competitive bidding process, there's a potential risk of inadequate requirement definition or scope creep, which could further inflate costs and delay delivery. Effective contract management and oversight are crucial to mitigate these risks.

What is Northrop Grumman's track record with similar radar and unmanned systems contracts for the Department of Defense?

Northrop Grumman Systems Corporation has a substantial and long-standing track record as a major defense contractor, with extensive experience in developing and producing advanced radar systems and unmanned aerial vehicles (UAVs). The company has been involved in numerous high-profile programs, including the E-2 Hawkeye airborne early warning aircraft (which features advanced radar), various electronic warfare systems, and components for other unmanned platforms. Their expertise in sensor technology, avionics, and systems integration makes them a frequent recipient of contracts for complex defense systems. While specific details on the 'Pakistan Radar UCA' contract are limited, Northrop Grumman's general portfolio indicates a strong capability in this domain, suggesting they possess the technical proficiency to execute such a program. Their history includes both successful deliveries and, like many large defense contractors, occasional challenges related to cost, schedule, or performance on complex, long-term projects.

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: 1580 NURSERY RD STE A, LINTHICUM HEIGHTS, MD, 21090

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $290,259,420

Exercised Options: $290,259,420

Current Obligation: $99,871,655

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline