DoD Spends $47.9M on Northrop Grumman's Infrared Countermeasures Software Sustainment
Contract Overview
Contract Amount: $47,886,096 ($47.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-04-30
End Date: 2022-04-30
Contract Duration: 365 days
Daily Burn Rate: $131.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: LARGE AIRCRAFT INFRARED COUNTERMEASURES ACQUISITION SUSTAINMENT ENGINEERING REQUIREMENT CROSS FUNCTIONAL CALENDAR YEAR 21-23 SOFTWARE SUSTAINMENT
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $47.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LARGE AIRCRAFT INFRARED COUNTERMEASURES ACQUISITION SUSTAINMENT ENGINEERING REQUIREMENT CROSS FUNCTIONAL CALENDAR YEAR 21-23 SOFTWARE SUSTAINMENT Key points: 1. Significant contract awarded to a single, large defense contractor. 2. Focus on sustainment engineering for critical aircraft countermeasures. 3. Limited competition raises questions about price discovery and value. 4. High dollar value for software sustainment in the defense sector.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, combined with a lack of competition, makes it difficult to assess true value. The awarded amount of $47.9M for a one-year sustainment period appears high without comparative data.
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 limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: Taxpayers may be overpaying due to the lack of competitive bidding on this critical defense sustainment contract.
Public Impact
Ensures operational readiness of vital aircraft infrared countermeasures. Supports advanced defense technology and national security. Potential for cost overruns due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
Positive Signals
- Supports critical defense capability
- Ensures system sustainment
Sector Analysis
This contract falls within the Defense sector, specifically for IT and electronic components related to military aircraft. Spending benchmarks for similar sustainment contracts are often opaque, but $47.9M for a single year of software sustainment is substantial.
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, which is common for large, sole-source defense contracts.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, oversees this contract. However, the sole-source nature and cost-plus structure may limit the effectiveness of oversight in controlling costs.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- High dollar value for sustainment
- Potential for cost overruns
- Limited transparency
Tags
other-electronic-component-manufacturing, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LARGE AIRCRAFT INFRARED COUNTERMEASURES ACQUISITION SUSTAINMENT ENGINEERING REQUIREMENT CROSS FUNCTIONAL CALENDAR YEAR 21-23 SOFTWARE SUSTAINMENT
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $47.9 million.
What is the period of performance?
Start: 2021-04-30. End: 2022-04-30.
What is the government's strategy to ensure fair pricing for sole-source sustainment contracts like this one?
The government typically relies on mechanisms like Forward Pricing Rate Agreements (FPRAs), should-cost analyses, and robust negotiation teams to ensure fair pricing on sole-source contracts. However, the effectiveness of these measures can vary, especially when dealing with complex, proprietary systems where cost data is limited.
What are the risks associated with relying on a single contractor for critical software sustainment?
The primary risks include vendor lock-in, potential price escalation over time, and reduced incentive for the contractor to innovate or improve efficiency. If the contractor experiences financial difficulties or decides to discontinue support, the government could face significant disruption and costly transitions to new solutions.
How does this contract contribute to the overall effectiveness of the military's infrared countermeasures?
This contract is crucial for maintaining the operational effectiveness of the aircraft's infrared countermeasures (IRCM) systems. Software sustainment ensures that these systems are up-to-date, patched against emerging threats, and functioning correctly, which is vital for protecting aircrews and aircraft from missile attacks.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
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: $90,390,089
Exercised Options: $48,040,145
Current Obligation: $47,886,096
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $603,810
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: 2021-04-30
Current End Date: 2022-04-30
Potential End Date: 2024-04-30 00:00:00
Last Modified: 2025-11-25
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