DoD's $41.4M Northrop Grumman Contract for Navigation Systems: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $41,394,732 ($41.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2005-02-04
End Date: 2010-09-30
Contract Duration: 2,064 days
Daily Burn Rate: $20.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $41.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: Key points: 1. Significant investment in critical navigation and guidance systems for the Air Force. 2. Sole-source award raises questions about price discovery and potential for overpayment. 3. Long contract duration (2005-2010) may indicate evolving technological needs or extended development. 4. Focus on specialized 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $41.4 million for a 5-year period is difficult to assess without specific performance metrics and comparable contract data. The 'Cost Plus Fixed Fee' structure can incentivize cost overruns, especially in a sole-source environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. This lack of competition limits the government's ability to secure the best possible price and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition in this sole-source award potentially results in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Ensures continued operation and modernization of essential Air Force navigation and guidance systems. Supports advanced technology development in the aerospace and defense sector. Potential for taxpayer funds to be used inefficiently due to lack of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can lead to cost overruns.
- Long contract duration without clear competition.
Positive Signals
- Provides critical navigation systems for national defense.
- Awarded to a known defense contractor with relevant expertise.
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, a specialized area within aerospace and defense. Spending in this sector is often driven by national security requirements and technological advancements.
Small Business Impact
The data indicates this was a large contract awarded to Northrop Grumman, a major defense contractor. There is no explicit information on small business participation within this specific contract award.
Oversight & Accountability
The 'IL' status suggests Illinois as the place of contract performance. Oversight would typically involve monitoring contract performance, costs, and adherence to terms by the Department of the Air Force to ensure accountability.
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 competitive pricing.
- Cost-plus contract type carries inherent cost overrun risk.
- Lack of transparency on specific system performance and benefits.
- Long contract duration without clear competitive re-evaluation.
Tags
search-detection-navigation-guidance-aer, department-of-defense, il, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. See the official description on USAspending.
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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $41.4 million.
What is the period of performance?
Start: 2005-02-04. End: 2010-09-30.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Without specific documentation, it's difficult to ascertain the exact reasons. However, the lack of competition inherently limits the government's ability to explore alternative solutions or leverage market competition to achieve better value.
How did the 'Cost Plus Fixed Fee' structure impact the final cost compared to a fixed-price contract, given the sole-source nature?
A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. In a sole-source scenario, this structure can incentivize higher spending as the contractor is reimbursed for costs incurred. The fixed fee provides some incentive for efficiency, but the primary risk of cost escalation lies with the government, unlike a fixed-price contract where the contractor bears more cost risk.
What specific navigation systems were procured, and how has their performance contributed to Air Force operational effectiveness?
The contract number and description point towards systems related to search, detection, navigation, and guidance. While the contract value is substantial, specific details on the exact systems and their direct impact on operational effectiveness are not provided. Assessing the true value requires understanding the technological advancements delivered and how they enhanced mission capabilities for the Air Force.
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 FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 600 HICKS RD, ROLLING MEADOW, IL, 60008
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-02-04
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2022-02-04
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
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)