DoD Awards $27.3M to Northrop Grumman for A340 LAIRCM Integration

Contract Overview

Contract Amount: $27,285,439 ($27.3M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2011-10-28

End Date: 2014-09-15

Contract Duration: 1,053 days

Daily Burn Rate: $25.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GERMANY HOS A340 LAIRCM INTEGRATION

Place of Performance

Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $27.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: GERMANY HOS A340 LAIRCM INTEGRATION Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on specialized electronic component manufacturing for aircraft. 3. Potential for limited competition due to specific integration needs. 4. Spending falls within typical defense procurement for complex systems.

Value Assessment

Rating: fair

The contract value of $27.3 million for LAIRCM integration on A340 aircraft is difficult to benchmark without specific details on the scope of work and the number of aircraft involved. Pricing for specialized defense electronics can vary significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a limited or sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process.

Taxpayer Impact: Taxpayer funds are used for specialized defense system integration, the value of which depends on the effectiveness and necessity of the LAIRCM system.

Public Impact

Enhances military aircraft survivability with advanced threat detection and countermeasures. Supports the operational readiness of German Air Force A340 aircraft. Represents investment in sophisticated electronic warfare capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition may lead to inflated costs.
  • Limited transparency on the specific integration requirements.
  • Long contract duration for a single-source award.

Positive Signals

  • Addresses critical defense capability for a partner nation.
  • Utilizes established defense contractor with relevant expertise.

Sector Analysis

This contract falls within the Defense sector, specifically related to aerospace electronics and system integration. Spending on such specialized military hardware is common, but benchmarks are highly specific to the technology and platform.

Small Business Impact

The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of small business participation in this specific award notice.

Oversight & Accountability

Oversight is managed by the Department of the Air Force. The firm fixed-price contract type provides some cost certainty, but the limited competition aspect warrants scrutiny to ensure fair pricing.

Related Government Programs

  • Other Electronic Component Manufacturing
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Limited competition
  • Lack of detailed technical specifications
  • Potential for cost overruns
  • No indication of small business involvement

Tags

other-electronic-component-manufacturing, department-of-defense, il, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. GERMANY HOS A340 LAIRCM INTEGRATION

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 $27.3 million.

What is the period of performance?

Start: 2011-10-28. End: 2014-09-15.

What specific LAIRCM capabilities are being integrated, and how do they compare to commercially available or previously procured systems?

The specific capabilities of the LAIRCM system being integrated are not detailed in the provided data. A thorough review would require access to technical specifications and performance requirements. Comparing these to existing systems or alternative solutions would clarify the necessity and potential cost-effectiveness of this specific integration.

What justification was provided for the limited competition award, and were alternative sourcing strategies considered?

The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION'. Typically, this implies a sole-source justification, such as unique capabilities, proprietary technology, or urgent need tied to a specific platform. An investigation into the official justification and any market research conducted would reveal if other viable options were explored.

How does the per-unit cost of this integration compare to similar LAIRCM installations on other aircraft platforms?

A direct per-unit cost comparison is not possible with the provided data. The contract value is $27.3 million, but the number of aircraft and the exact scope of integration work are unknown. Benchmarking would require detailed cost breakdowns and data from comparable contracts, ideally with similar aircraft types and system configurations.

Industry Classification

NAICS: ManufacturingSemiconductor and Other Electronic Component ManufacturingOther Electronic Component 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

Address: 600 HICKS RD, ROLLING MEADOWS, IL, 60008

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: $27,285,439

Exercised Options: $27,285,439

Current Obligation: $27,285,439

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2011-10-28

Current End Date: 2014-09-15

Potential End Date: 2014-09-15 00:00:00

Last Modified: 2022-10-05

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