DoD Awards Northrop Grumman $27.8M for Mission Planning, Sole-Source Contract

Contract Overview

Contract Amount: $27,856,931 ($27.9M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2021-01-01

End Date: 2026-12-31

Contract Duration: 2,190 days

Daily Burn Rate: $12.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MISSION PLANNING

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $27.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MISSION PLANNING Key points: 1. Significant contract awarded to a major defense contractor. 2. Sole-source nature raises questions about competition and potential cost savings. 3. Long duration suggests a critical, ongoing need for these services. 4. Aircraft Manufacturing sector is a key area for defense spending.

Value Assessment

Rating: fair

The contract value of $27.8 million over five years appears reasonable for specialized mission planning software and support. However, without competitive bidding, it's difficult to definitively assess if this represents the best value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs compared to a competitive environment. The justification for sole-source is not provided.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition, potentially missing out on cost efficiencies that could have been achieved through a bidding process.

Public Impact

Ensures continued operational readiness for Air Force missions. Supports advanced technology development in defense planning. Potential for cost overruns due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Potential for cost escalation
  • Long contract duration

Positive Signals

  • Supports critical defense mission
  • Award to established contractor

Sector Analysis

This contract falls within the Defense sector, specifically supporting aircraft mission planning. Spending in this area is crucial for national security, but often involves high costs due to specialized requirements and limited vendor pools.

Small Business Impact

This 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

Oversight is crucial for sole-source contracts to ensure fair pricing and prevent waste. The Department of the Air Force is responsible for monitoring performance and expenditures to ensure the government receives value.

Related Government Programs

  • Aircraft Manufacturing
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Sole-source award limits competitive pricing.
  • Potential for cost overruns without competition.
  • Lack of transparency in the procurement process.
  • Long contract duration may mask inefficiencies.

Tags

aircraft-manufacturing, department-of-defense, ca, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. MISSION PLANNING

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 $27.9 million.

What is the period of performance?

Start: 2021-01-01. End: 2026-12-31.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of adequate competition. Without further documentation, it's impossible to determine the specific rationale. This information is critical for assessing the necessity of bypassing competitive procedures and understanding potential cost implications.

How does the per-unit cost of this mission planning system compare to similar systems or previous contracts?

Benchmarking the per-unit cost is challenging without competitive data. Given the sole-source nature, direct comparisons are difficult. A thorough review of historical pricing for similar systems, if available, and an analysis of the contractor's cost breakdown would be necessary to assess value for money.

What measures are in place to ensure the effectiveness and efficiency of the mission planning services provided under this contract?

Effectiveness is typically ensured through performance metrics, milestone tracking, and regular reviews outlined in the contract. The Air Force must actively monitor Northrop Grumman's delivery against these requirements. Efficiency, particularly regarding cost, requires diligent oversight to prevent scope creep and ensure adherence to the fixed-price terms.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingAircraft Manufacturing

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS.TECHNICAL REPRESENTATIVE SERVICES

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: 17066 GOLDENTOP RD, SAN DIEGO, CA, 92127

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: $35,204,588

Exercised Options: $30,251,013

Current Obligation: $27,856,931

Actual Outlays: $3,497,462

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA869021D1009

IDV Type: IDC

Timeline

Start Date: 2021-01-01

Current End Date: 2026-12-31

Potential End Date: 2027-12-31 00:00:00

Last Modified: 2025-12-09

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