DoD's Northrop Grumman contract for infrared missile warning sensors valued at $31M, awarded without competition

Contract Overview

Contract Amount: $31,034,927 ($31.0M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2025-11-30

End Date: 2026-05-31

Contract Duration: 182 days

Daily Burn Rate: $170.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LARGE AIRCRAFT INFRARED COUNTERMEASURES ACQUISITION SUSTAINMENT ENGINEERING REQUIREMENT CROSS FUNCTIONAL (LASER X) INFRARED MISSILE WARNING SENSOR (IRMWS)

Place of Performance

Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $31.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LARGE AIRCRAFT INFRARED COUNTERMEASURES ACQUISITION SUSTAINMENT ENGINEERING REQUIREMENT CROSS FUNCTIONAL (LASER X) INFRARED MISSILE WARNING SENSOR (IRMWS) Key points: 1. The contract focuses on sustainment engineering for infrared missile warning sensors, a critical component for aircraft survivability. 2. Awarded to Northrop Grumman, a major defense contractor with extensive experience in aerospace and defense systems. 3. The contract duration is 18 months, suggesting a need for ongoing support and maintenance. 4. The 'IL' (Illinois) state code indicates a potential concentration of work or contractor presence in that region. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but also carries risk if not managed closely. 6. No small business set-aside was applied, indicating the primary contractor is not a small business.

Value Assessment

Rating: fair

Benchmarking the value of this specific sustainment engineering contract is challenging without detailed cost breakdowns and comparisons to similar sole-source awards. The CPFF structure requires careful oversight to ensure costs remain reasonable and do not escalate unnecessarily. Given the specialized nature of infrared missile warning systems, the pricing is likely influenced by proprietary technology and limited market alternatives. Further analysis would be needed to assess if the fixed fee adequately compensates the contractor for the effort while providing value to the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means the government did not benefit from price discovery through a bidding process, potentially leading to higher costs than if it had been competed.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive bidding. Without multiple offers, the government has less leverage to negotiate the most favorable price.

Public Impact

The primary beneficiaries are the U.S. Air Force and its aircrews, who will receive sustainment support for critical survivability equipment. The services delivered include engineering support, maintenance, and potentially upgrades for infrared missile warning sensors. The geographic impact is primarily linked to the contractor's facilities in Illinois, though the deployed systems are global. Workforce implications include specialized engineering and technical roles within Northrop Grumman, particularly in Illinois.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential for cost savings.
Cost Plus Fixed Fee (CPFF) contract type requires robust government oversight to manage costs effectively.
Lack of competition may reduce incentives for innovation or efficiency improvements from the contractor.
Specialized nature of the technology could lead to vendor lock-in and limited future sourcing options.

Positive Signals

Contract awarded to a large, established defense contractor with proven experience in relevant technologies.
Sustainment engineering ensures the continued operational readiness of critical aircraft safety systems.
The contract duration provides a degree of stability for essential support services.
Focus on infrared missile warning sensors addresses a vital aspect of aircrew protection.

Sector Analysis

The defense sector, particularly aerospace and defense electronics, is characterized by high R&D costs, long product lifecycles, and significant government procurement. Infrared missile warning systems are a niche but critical component within this sector, essential for protecting military aircraft from threats. The market for such specialized systems is often dominated by a few key players due to technological complexity and security requirements. Spending in this area is driven by evolving threat landscapes and the need for advanced survivability solutions.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses within the provided data. The award to Northrop Grumman, a large prime contractor, suggests that the primary focus is on leveraging their established capabilities. This means that direct opportunities for small businesses to participate in this specific contract are likely limited unless they are part of Northrop Grumman's supply chain.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Air Force's contracting and program management offices. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor incurred costs against the fixed fee and ensure the contractor is operating efficiently. Transparency would be facilitated through regular reporting requirements and potentially through the Defense Contract Audit Agency (DCAA). Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Survivability Equipment
Missile Warning Systems
Aerospace Electronics Manufacturing
Defense Sustainment Services
Northrop Grumman Defense Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Potential for cost escalation without robust oversight
Limited competition impacting price discovery

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LARGE AIRCRAFT INFRARED COUNTERMEASURES ACQUISITION SUSTAINMENT ENGINEERING REQUIREMENT CROSS FUNCTIONAL (LASER X) INFRARED MISSILE WARNING SENSOR (IRMWS)

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 $31.0 million.

What is the period of performance?

Start: 2025-11-30. End: 2026-05-31.

What is Northrop Grumman's track record with similar infrared missile warning system contracts?

Northrop Grumman has a significant history and extensive experience in developing and sustaining advanced aerospace and defense systems, including electronic warfare and sensor technologies. They are a major provider of various aircraft components and integrated systems for military platforms. While specific details on prior contracts for this exact 'LASER X' IRMWS sustainment might be proprietary or require deeper database access, their overall portfolio indicates a strong capability in this domain. Past performance reviews and contract awards for similar sensor systems and sustainment efforts would provide further context on their reliability, technical execution, and cost management in comparable engagements.

How does the $31M value compare to other sustainment contracts for similar defense systems?

Directly comparing the $31 million value of this specific sustainment engineering contract to others is challenging without knowing the exact scope, duration, and complexity of 'similar' systems. Sustainment contracts can vary widely based on the platform, the age and sophistication of the technology, and the level of support required (e.g., depot-level maintenance, field support, software updates). However, for critical, specialized systems like infrared missile warning sensors on military aircraft, a multi-year sustainment effort in the tens of millions of dollars is not uncommon, especially when considering the high cost of specialized engineering talent and the need for continuous readiness.

What are the primary risks associated with a sole-source, CPFF contract for this type of system?

The primary risks associated with a sole-source, Cost Plus Fixed Fee (CPFF) contract for specialized defense systems like infrared missile warning sensors are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher prices and reduced incentive for the contractor to optimize costs or innovate aggressively. Secondly, the CPFF structure, while allowing for flexibility, places a significant burden on the government to meticulously monitor and audit costs to ensure they are reasonable and allocable to the contract. Without robust oversight, there's a risk of cost overruns and inefficient resource utilization. Vendor lock-in is also a concern, as the government may become dependent on a single provider for critical sustainment.

What is the expected program effectiveness and impact of this contract?

The expected program effectiveness hinges on Northrop Grumman's ability to provide timely and high-quality sustainment engineering for the Infrared Missile Warning Sensors (IRMWS). Effective sustainment ensures that these critical systems remain operational, reliable, and capable of detecting missile threats, thereby enhancing aircraft survivability and mission success rates for the U.S. Air Force. The impact is direct: improved readiness of the affected aircraft fleet, reduced risk to aircrews, and continued deterrence capabilities. The contract's success will be measured by the uptime and performance of the IRMWS, as well as the efficiency of the engineering support provided.

What are the historical spending patterns for infrared missile warning systems or similar sustainment efforts?

Historical spending patterns for infrared missile warning systems and their sustainment are generally characterized by significant, long-term investments due to the critical nature of the technology and the extended service life of military aircraft. Budgets for such systems often fluctuate based on modernization programs, threat assessments, and overall defense spending priorities. While specific figures for this 'LASER X' program are not detailed here, defense agencies typically allocate substantial funds annually for the acquisition, sustainment, and upgrade of electronic warfare and sensor suites. These costs are driven by the complexity of the technology, the need for continuous research and development, and the high cost of specialized maintenance and engineering support over decades.

Are there any known performance issues or concerns with Northrop Grumman's previous work on similar systems?

Without access to detailed performance reviews, past performance databases, or specific contract histories for Northrop Grumman's work on infrared missile warning systems, it is difficult to definitively state known performance issues. However, as a major defense contractor, Northrop Grumman has been involved in numerous large-scale programs, and like any large entity, may have faced challenges or criticisms on specific projects. General concerns with complex defense systems can include integration difficulties, software glitches, or sustainment cost escalations. A thorough review would involve examining contract award histories, CPARS (Contractor Performance Assessment Reporting System) data, and any publicly available reports or news related to their performance in electronic warfare and sensor sustainment.

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: 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: $31,034,927

Exercised Options: $31,034,927

Current Obligation: $31,034,927

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $3,522,726

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