DoD Awards Northrop Grumman $101.6M for Radar Systems, Limited Competition
Contract Overview
Contract Amount: $101,662,330 ($101.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2013-06-07
End Date: 2017-12-29
Contract Duration: 1,666 days
Daily Burn Rate: $61.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: (V)9 RADAR
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $101.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: (V)9 RADAR Key points: 1. Significant contract value awarded to a single large defense contractor. 2. Limited competition raises questions about price discovery and potential overspending. 3. High-risk contract due to specialized nature and lack of competitive bidding. 4. Sector focus on advanced defense technology, critical for national security.
Value Assessment
Rating: questionable
The contract value of $101.6 million for radar systems is difficult to assess without comparable contract data. The lack of competition suggests potential for inflated pricing compared to a competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This significantly restricts price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely results in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Taxpayers may be paying a premium for radar systems due to limited competition. The Department of Defense relies on this contractor for critical radar technology. Potential for cost overruns exists without robust competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of price benchmarks
- Sole-source award potential
Positive Signals
- Critical defense technology
- Faced-paced contract execution
Sector Analysis
This contract falls within the Defense sector, specifically focusing on advanced radar systems. Spending in this area is typically high due to technological complexity and national security requirements. Benchmarks are difficult without specific system comparisons.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large defense contractor. There is no indication of small business participation in this specific award, suggesting a focus on prime contractor capabilities.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency. Oversight effectiveness is difficult to gauge without further details on performance reviews and cost audits, especially given the limited competition.
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
- Potential for cost overruns
- Dependency on a single supplier
- Limited transparency in pricing
Tags
search-detection-navigation-guidance-aer, department-of-defense, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $101.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. (V)9 RADAR
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 $101.7 million.
What is the period of performance?
Start: 2013-06-07. End: 2017-12-29.
What is the justification for the limited competition on this radar system contract?
The justification for limited competition is crucial for understanding the value proposition. Without competitive bids, it's challenging to ascertain if the government secured the best possible price and technological solution. Further investigation into the specific technical requirements and market availability of alternative providers is warranted to ensure taxpayer funds are used efficiently.
What are the risks associated with a sole-source or limited-competition award for critical defense systems?
Sole-source or limited-competition awards for critical defense systems carry significant risks. These include potential for inflated pricing due to lack of market pressure, reduced incentive for innovation from the contractor, and a heightened dependency on a single supplier. This dependency can create vulnerabilities in the supply chain and limit future flexibility in technology upgrades or alternative sourcing.
How does the firm fixed-price contract type mitigate risk in this limited competition scenario?
A firm fixed-price contract type aims to shift cost risk to the contractor, providing cost certainty for the government. However, in a limited competition scenario, the initial price may already be higher than in a competitive environment. While the FFP structure caps the government's exposure to cost overruns, it does not guarantee a fair market price was initially established.
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 W NURSERY RD, LINTHICUM HEIGHTS, MD, 21090
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: $101,662,330
Exercised Options: $101,662,330
Current Obligation: $101,662,330
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-06-07
Current End Date: 2017-12-29
Potential End Date: 2017-12-29 00:00:00
Last Modified: 2019-04-30
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