DoD's $155M Northrop Grumman Contract for Aircraft Infrared Countermeasures Lacks Competition
Contract Overview
Contract Amount: $154,828,578 ($154.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-05-22
End Date: 2026-04-30
Contract Duration: 2,169 days
Daily Burn Rate: $71.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LARGE AIRCRAFT INFRARED COUNTERMEASURES ACQUISITION SUSTAINMENT ENGINEERING REQUIREMENTS CROSS FUNCTIONAL
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $154.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LARGE AIRCRAFT INFRARED COUNTERMEASURES ACQUISITION SUSTAINMENT ENGINEERING REQUIREMENTS CROSS FUNCTIONAL Key points: 1. Significant spending on sustainment engineering for critical aircraft systems. 2. Sole-source award to Northrop Grumman raises concerns about price discovery. 3. High contract value suggests substantial taxpayer investment. 4. Focus on electronic components manufacturing for defense applications.
Value Assessment
Rating: questionable
The contract value of $155M over several years for sustainment engineering is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market alternatives for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning it was not competed. This limits price discovery and potentially leads to higher costs for the government as there is no direct comparison to other vendors' pricing.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for these sustainment engineering services.
Public Impact
Ensures continued operational readiness of Air Force aircraft. Supports advanced infrared countermeasures technology. Potential for cost overruns due to sole-source nature. Impacts the defense industrial base through a major sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Sustainment of critical defense systems
- Supports advanced technology
Sector Analysis
This contract falls within the defense sector, specifically related to electronic component manufacturing for aircraft systems. Spending benchmarks for sustainment engineering can vary widely, but significant sole-source awards warrant scrutiny.
Small Business Impact
The data indicates this contract was awarded to Northrop Grumman Systems Corporation and does not specify any small business participation. Sole-source awards often bypass opportunities for small businesses to compete.
Oversight & Accountability
The sole-source nature of this award suggests limited oversight on price competitiveness. Further review would be needed to ensure adequate performance monitoring and justification for the non-competitive award.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost overruns.
- Lack of transparency in pricing.
- No clear small business participation.
- Long contract duration without competitive review.
Tags
other-electronic-component-manufacturing, department-of-defense, il, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $154.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LARGE AIRCRAFT INFRARED COUNTERMEASURES ACQUISITION SUSTAINMENT ENGINEERING REQUIREMENTS CROSS FUNCTIONAL
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 $154.8 million.
What is the period of performance?
Start: 2020-05-22. End: 2026-04-30.
What is the justification for awarding this contract sole-source, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves specific circumstances like unique capabilities or urgent needs. Without further details, it's presumed the Air Force determined Northrop Grumman was the only viable source. To ensure fair pricing, the government may rely on cost analysis, historical pricing data, or independent government cost estimates, though competitive benchmarking is absent.
What are the potential risks associated with a sole-source contract of this magnitude for sustainment engineering?
The primary risk is inflated costs due to the absence of competition, leading to inefficient use of taxpayer funds. Other risks include vendor lock-in, reduced innovation if the sole provider becomes complacent, and potential supply chain vulnerabilities if the provider faces issues. The government also loses the opportunity to benefit from potentially lower prices or better solutions offered by competing firms.
How does this contract contribute to the overall effectiveness and readiness of the Air Force's aircraft?
This contract is crucial for ensuring the ongoing sustainment engineering of large aircraft infrared countermeasures. These systems are vital for protecting aircrews and aircraft from missile threats. By maintaining and potentially upgrading these systems, the contract directly supports the operational effectiveness and readiness of the Air Force's fleet, ensuring mission capability.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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: 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: $154,828,578
Exercised Options: $154,828,578
Current Obligation: $154,828,578
Actual Outlays: $201,135
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $34,723
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA863819D0001
IDV Type: IDC
Timeline
Start Date: 2020-05-22
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2025-02-13
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