DoD Awards $111M for CY25 LAIRCM Hardware Base-Buy to Northrop Grumman
Contract Overview
Contract Amount: $111,154,352 ($111.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-07-01
End Date: 2027-06-30
Contract Duration: 729 days
Daily Burn Rate: $152.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE PURPOSE OF THIS DELIVERY ORDER IS TO INCORPORATE THE CY25 LAIRCM HARDWARE BASE-BUY DELIVERY ORDER AND RELATED FUNDS OBLIGATION.
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $111.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THE PURPOSE OF THIS DELIVERY ORDER IS TO INCORPORATE THE CY25 LAIRCM HARDWARE BASE-BUY DELIVERY ORDER AND RELATED FUNDS OBLIGATION. Key points: 1. Significant award for critical defense hardware, indicating sustained demand. 2. Sole-source award to Northrop Grumman, raising questions about competition. 3. Long-term contract (2025-2027) suggests strategic importance and potential for price escalation. 4. Focus on electronic component manufacturing within the defense sector.
Value Assessment
Rating: questionable
The contract is a firm fixed price delivery order. Without competitive bidding, it's difficult to assess if the $111.15M price is optimal. Benchmarking against similar LAIRCM hardware procurements would be necessary.
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 price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a substantial $111M contract means taxpayers may be overpaying due to the lack of market pressure.
Public Impact
Ensures continued availability of critical LAIRCM hardware for Air Force operations. Supports a major defense contractor and its supply chain. Potential for increased costs due to sole-source nature impacts defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High dollar value
Positive Signals
- Firm fixed price contract type
- Long-term commitment
Sector Analysis
This award falls under Other Electronic Component Manufacturing (NAICS 334419) within the defense sector. Spending in this area is often driven by specific program requirements and national security needs, with limited public benchmarks available for sole-source awards.
Small Business Impact
The data does not indicate any subcontracting goals or participation from small businesses in this sole-source award to Northrop Grumman.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. Transparency regarding the justification for not competing the award is crucial.
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 due to lack of market pressure.
- Lack of transparency regarding the justification for sole-sourcing.
- Long-term commitment may lock in potentially inflated prices.
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 $111.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THE PURPOSE OF THIS DELIVERY ORDER IS TO INCORPORATE THE CY25 LAIRCM HARDWARE BASE-BUY DELIVERY ORDER AND RELATED FUNDS OBLIGATION.
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 $111.2 million.
What is the period of performance?
Start: 2025-07-01. End: 2027-06-30.
What is the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent requirements where only one vendor can meet the need. Without further documentation, it's presumed that Northrop Grumman possesses the exclusive ability to provide the specified CY25 LAIRCM hardware, or that the urgency precluded a competitive process. This needs verification through official sole-source justifications.
How does the $111.15M price compare to previous LAIRCM hardware procurements or similar systems?
Benchmarking this $111.15M award is challenging without access to historical pricing data for the LAIRCM hardware or comparable systems. Given the sole-source nature, a direct comparison is difficult. A thorough cost analysis by the DoD, comparing this award to previous contracts or industry benchmarks for similar electronic components, is essential to validate its reasonableness.
What is the long-term strategic value and potential risk associated with this sustained hardware investment?
The long-term value lies in ensuring the operational readiness of the Air Force's LAIRCM systems, crucial for protecting aircraft. The primary risk is the financial exposure due to the sole-source award; sustained investment without competition could lead to escalating costs over time, potentially impacting future defense budgets and requiring significant taxpayer funding.
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: $111,154,352
Exercised Options: $111,154,352
Current Obligation: $111,154,352
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: 2025-07-01
Current End Date: 2027-06-30
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2025-12-11
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