DoD's ASIP 1C2C Program: $130M Spent on Northrop Grumman's Navigation Systems
Contract Overview
Contract Amount: $130,087,511 ($130.1M)
Contractor: Northrop Grumman Space & Mission Systems Corp.
Awarding Agency: Department of Defense
Start Date: 2007-12-05
End Date: 2012-06-05
Contract Duration: 1,644 days
Daily Burn Rate: $79.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: ASIP 1C2C PROGRAM
Place of Performance
Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95119
Plain-Language Summary
Department of Defense obligated $130.1 million to NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP. for work described as: ASIP 1C2C PROGRAM Key points: 1. Significant investment in specialized navigation systems. 2. Solely awarded to Northrop Grumman, raising competition concerns. 3. Long contract duration (2007-2012) suggests potential for cost overruns. 4. Focus on a niche manufacturing sector (NAICS 334511).
Value Assessment
Rating: questionable
The contract type is Cost Plus Incentive Fee, which can lead to higher costs than fixed-price contracts. Without comparable contract data, it's difficult to definitively assess if the $130M expenditure represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition likely resulted in taxpayers paying a premium for these navigation systems.
Public Impact
Impacts Air Force's operational capabilities through advanced navigation technology. Supports a specific segment of the aerospace and defense industry. Highlights potential risks in sole-source procurements for critical systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- Lack of competition
Positive Signals
- Procurement of critical navigation systems
- Awarded to established defense contractor
Sector Analysis
The ASIP 1C2C program falls within the Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing sector. Spending in this niche area is often characterized by high R&D costs and limited supplier options.
Small Business Impact
The contract was awarded to Northrop Grumman, a large prime contractor. There is no indication of small business participation in this specific award, suggesting limited opportunities for SMBs in this particular procurement.
Oversight & Accountability
The 'st' field indicates 'CA' (California), suggesting potential state-level oversight or involvement. However, the lack of competition and cost-plus nature warrant closer scrutiny regarding program management and cost control.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type can lead to higher costs.
- Long contract duration increases risk of cost escalation.
- Lack of transparency on performance against targets.
- Potential for unaddressed taxpayer cost premium.
Tags
search-detection-navigation-guidance-aer, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $130.1 million to NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP.. ASIP 1C2C PROGRAM
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SPACE & MISSION 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 $130.1 million.
What is the period of performance?
Start: 2007-12-05. End: 2012-06-05.
What was the justification for awarding this contract sole-source, and were alternatives explored?
The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a justification, such as a unique capability or lack of viable alternatives. Without this justification, it's impossible to assess if the government adequately explored competitive options or if this was a missed opportunity for better pricing and innovation.
How did the final costs compare to the initial estimates and incentive targets for this Cost Plus Incentive Fee contract?
The contract type is Cost Plus Incentive Fee (CPIF), which aims to incentivize cost savings. However, the data only provides the total award amount ($130M) and not the initial estimates or the final cost relative to targets. Understanding the contractor's performance against these metrics is crucial for evaluating the effectiveness of the incentive structure and the overall value achieved.
What is the current operational status and effectiveness of the ASIP 1C2C navigation systems procured under this contract?
The contract period ended in June 2012. To assess the effectiveness, one would need to examine post-award performance reports, operational deployment data, and any subsequent sustainment or upgrade contracts. Understanding how these systems have performed in the field and their contribution to mission success is vital for judging the long-term value of the initial investment.
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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 6377 SAN IGNACIO AVE, SAN JOSE, CA, 95119
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $130,324,578
Exercised Options: $130,324,578
Current Obligation: $130,087,511
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-12-05
Current End Date: 2012-06-05
Potential End Date: 2012-06-05 00:00:00
Last Modified: 2016-11-02
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