DoD Awards Northrop Grumman $1.43B for Identification of Friend or Foe (IFF) Program Production
Contract Overview
Contract Amount: $14,272,476 ($14.3M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2025-01-01
End Date: 2027-04-30
Contract Duration: 849 days
Daily Burn Rate: $16.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRODUCTION EFFORT FOR IDENTIFICATION OF FRIEND OR FOE (IFF) PROGRAM
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550
Plain-Language Summary
Department of Defense obligated $14.3 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: PRODUCTION EFFORT FOR IDENTIFICATION OF FRIEND OR FOE (IFF) PROGRAM Key points: 1. Significant contract value of $1.43 billion awarded to a single large business. 2. Sole-source award to Northrop Grumman Systems Corp raises questions about competition. 3. Long contract duration of 849 days suggests a substantial, ongoing effort. 4. The contract falls under the Aircraft Manufacturing sector, indicating defense-related production.
Value Assessment
Rating: questionable
The contract value of $1.43 billion is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar IFF production contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman Systems Corp. This lack of competition limits price discovery and may result in a higher cost to taxpayers.
Taxpayer Impact: The absence of competition for a $1.43 billion contract could lead to suboptimal pricing, potentially increasing the financial burden on taxpayers.
Public Impact
Ensures continued operation and modernization of critical IFF systems for the Air Force. Supports national security by maintaining the ability to distinguish friendly from hostile aircraft. Potential for job creation within Northrop Grumman and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Sole-source award
Positive Signals
- Critical defense system production
- Long-term contract provides stability
Sector Analysis
This contract is within the Aircraft Manufacturing sector, specifically for the production of Identification of Friend or Foe (IFF) systems. Spending in this area is crucial for defense operations and maintaining air superiority.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corp, a large business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value and that the contractor is meeting all performance requirements.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for overpricing due to lack of competition
- Risk of contractor lock-in
- Limited transparency in pricing
- Dependency on a single supplier for critical defense technology
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.3 million to NORTHROP GRUMMAN SYSTEMS CORP. PRODUCTION EFFORT FOR IDENTIFICATION OF FRIEND OR FOE (IFF) PROGRAM
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORP.
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 $14.3 million.
What is the period of performance?
Start: 2025-01-01. End: 2027-04-30.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award is typically based on factors like unique capabilities, proprietary technology, or urgent national security needs. Without further details, it's unclear if alternative competitive strategies were explored or deemed unfeasible. A thorough review of the justification is necessary to ensure taxpayer funds are used efficiently and that competition was only bypassed when absolutely essential.
How does the per-unit cost of this IFF production compare to historical data or industry benchmarks?
Benchmarking the per-unit cost is challenging without access to specific production details and historical data for this particular IFF system. Given the sole-source nature, a direct comparison to competitive contracts is difficult. The Department of Defense should conduct an independent cost analysis to validate the pricing and ensure it aligns with reasonable expectations for similar defense hardware production.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured?
Key performance indicators for this IFF production contract would likely include delivery schedules, system reliability, technical performance specifications, and quality control metrics. The Air Force should have clearly defined KPIs and a robust monitoring process to track Northrop Grumman's performance throughout the contract duration, ensuring the critical functionality of the IFF system is maintained.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 3520 E AVENUE M, PALMDALE, CA, 93550
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: $22,951,491
Exercised Options: $14,272,476
Current Obligation: $14,272,476
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $67,147
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA861624DB001
IDV Type: IDC
Timeline
Start Date: 2025-01-01
Current End Date: 2027-04-30
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2025-12-18
More Contracts from Northrop Grumman Systems Corp
- Ground-Based Strategic Deterrent (gbsd) Engineering and Manufacturing Development (EMD) and Early Production and Deployment (P&D) — $11.7B (Department of Defense)
- Acat 1D B-2 Dms-M EMD — $863.7M (Department of Defense)
- 200411!000088!5700!GU22 !asc/Ysk !F3365799D0028 !A!N! !N!0023 ! !20040827!20081230!362686958!008255408!016435559!n!northrop Grumman Systems Corpo!3520 East Avenue M !palmdale !ca!93550!55156!037!06!palmdale !LOS Angeles !california!+000000400000!n!n!000000000000!ac65!rdte/Electronics&communication Eq-Eng/Manuf DEV !a1c!other Aircraft Equipment !376 !B-2 RMP !336411!E! !5!B!S! ! ! !99990909!B! ! !n!z!d!n!r!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! !Y! ! !0001! ! — $542.1M (Department of Defense)
- Acat 1, B2 UCA for DMS TD Phase 2 — $536.3M (Department of Defense)
- Enhanced Polar System Recapitalization - TWO Payloads (P6&P7) — $472.1M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)