DoD awards Northrop Grumman $33.7M for Radar Sensor Sustainment, raising questions on value and competition
Contract Overview
Contract Amount: $33,716,926 ($33.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-06-01
End Date: 2023-10-31
Contract Duration: 1,978 days
Daily Burn Rate: $17.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Defense
Official Description: SUSTAINMENT AND MODIFICATION OF RADAR SENSORS (SMORS)
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $33.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SUSTAINMENT AND MODIFICATION OF RADAR SENSORS (SMORS) Key points: 1. Significant contract value of $33.7M for radar sensor sustainment. 2. Northrop Grumman is the sole awardee, limiting competitive pressure. 3. Potential risks include lack of competition and unclear value for money. 4. Engineering services sector with a focus on defense technology.
Value Assessment
Rating: questionable
The contract's value is substantial, but without clear benchmarks or competitive pricing, assessing its value for money is difficult. The 'COST NO FEE' pricing structure can sometimes lead to less incentive for cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being listed as 'FULL AND OPEN COMPETITION', the award went to a single entity, Northrop Grumman. This raises concerns about whether the competition was truly effective in driving down costs or ensuring the best value.
Taxpayer Impact: Taxpayer funds are being spent on sustainment services. The lack of demonstrated competition suggests potential overspending or suboptimal resource allocation.
Public Impact
Ensures continued operational capability of critical radar systems. Supports advanced defense technology and national security. Potential for taxpayer funds to be used inefficiently due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of demonstrated competition despite 'full and open' designation.
- Cost-plus pricing structure may not incentivize cost efficiency.
- Limited transparency on performance metrics and value realization.
Positive Signals
- Maintains critical defense infrastructure.
- Supports a major defense contractor.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense radar systems. Benchmarks for similar sustainment contracts are difficult to ascertain without more detailed performance and cost data.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award, which is common for large, complex defense contracts.
Oversight & Accountability
Oversight is provided by the Defense Contract Management Agency. However, the effectiveness of this oversight in ensuring competitive pricing and value for money is questionable given the award structure.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of demonstrated competition.
- Potential for cost overruns due to pricing structure.
- Limited transparency on value for money.
- Sole awardee raises concerns about market fairness.
- Need for clearer performance metrics.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SUSTAINMENT AND MODIFICATION OF RADAR SENSORS (SMORS)
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 $33.7 million.
What is the period of performance?
Start: 2018-06-01. End: 2023-10-31.
How was the 'full and open competition' process structured to ensure genuine competition and fair pricing for radar sensor sustainment?
The data indicates 'full and open competition' but a sole awardee. Further investigation is needed to understand if multiple bids were received, if the solicitation was structured to attract diverse bidders, and why only one entity was ultimately selected. This could reveal issues with the solicitation's requirements, evaluation criteria, or market dynamics.
What specific performance metrics and cost controls are in place under the 'COST NO FEE' contract to ensure taxpayer value?
The 'COST NO FEE' contract type typically means the contractor is reimbursed for allowable costs but receives no fee. However, without detailed performance metrics and robust oversight, it's difficult to ensure that costs are minimized and that the sustainment services are delivered efficiently and effectively. Specific KPIs and reporting requirements are crucial.
What is the long-term strategy for radar sensor sustainment, and does this contract align with achieving cost-effective modernization or replacement?
This contract covers sustainment through October 2023. Understanding the DoD's long-term plan for its radar sensor capabilities is essential. Is this sustainment effort a stop-gap measure, or part of a larger strategy? Without this context, it's hard to judge if the $33.7M investment represents good value towards future operational needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 14119 SULLYFIELD CIR STE A, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $43,279,558
Exercised Options: $43,279,558
Current Obligation: $33,716,926
Actual Outlays: $999,614
Subaward Activity
Number of Subawards: 252
Total Subaward Amount: $241,428,988
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA872318D0001
IDV Type: IDC
Timeline
Start Date: 2018-06-01
Current End Date: 2023-10-31
Potential End Date: 2023-10-31 00:00:00
Last Modified: 2025-07-28
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