DoD Awards Northrop Grumman $109M for Electronics & Communication Equipment
Contract Overview
Contract Amount: $109,388,150 ($109.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2004-08-16
End Date: 2011-12-31
Contract Duration: 2,693 days
Daily Burn Rate: $40.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200411!000006!5700!GV60 !ESC/DI !FA872504C0007 !A!N! !N! ! !20040816!20050516!064683464!008255408!016435559!N!NORTHROP GRUMMAN DEFENSE MISSI!12011 SUNSET HILLS ROAD !RESTON !VA!20190!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000003270000!N!N!000003270000!AC62!RDTE/ELECTRONICS & COMMUNICATION EQ-APPLIED RESEA !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334290!E! !3! ! ! ! ! !99990909!B! ! !B! !A!U!J!2!003!B! !Z!N!A! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92128
Plain-Language Summary
Department of Defense obligated $109.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200411!000006!5700!GV60 !ESC/DI !FA872504C0007 !A!N! !N! ! !20040816!20050516!064683464!008255408!016435559!N!NORTHROP GRUMMAN DEFENSE MISSI!12011 SUNSET HILLS ROAD !RESTON !VA!20190!66672!059!51!RESTON !FAIR… Key points: 1. Significant contract value of $109.4 million awarded to Northrop Grumman. 2. Competition type is 'Full and Open', suggesting a competitive bidding process. 3. Contract duration is over 7 years, indicating a long-term need. 4. Sector is Defense, specifically for electronics and communication equipment.
Value Assessment
Rating: fair
The contract value of $109.4 million over a 7-year period appears substantial. Benchmarking against similar contracts for advanced electronics and communication equipment is difficult without more specific technical details, but the duration suggests a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition', which is generally positive for price discovery. However, the specific details of the bidding process and the number of bidders are not provided, making it hard to assess the full impact on price.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, but the long duration and specialized nature of the equipment could still represent a significant cost.
Public Impact
Supports national defense by providing critical communication equipment. Long-term contract provides stability for the contractor and ensures supply chain continuity. Potential for technological advancements in defense communication systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed technical specifications makes it hard to assess value.
- Long contract duration could lead to cost overruns if not managed effectively.
- Limited information on the competitive landscape beyond 'Full and Open'.
Positive Signals
- Awarded through full and open competition.
- Contract supports a critical defense need.
- Experienced contractor with a history of defense contracts.
Sector Analysis
This contract falls within the Defense sector, specifically for applied research and development of electronics and communication equipment. Spending in this area is crucial for maintaining technological superiority but can be subject to rapid obsolescence and high R&D costs.
Small Business Impact
The data indicates this contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no explicit information on subcontracting to small businesses, which is a common practice in large defense contracts but not detailed here.
Oversight & Accountability
The contract is managed by the Department of Defense. Oversight would typically involve program managers, contracting officers, and potentially inspectors general to ensure performance, quality, and adherence to contract terms.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration increases risk of obsolescence.
- Lack of detailed technical scope makes value assessment difficult.
- Potential for cost overruns in R&D-intensive projects.
- Limited insight into the competitive landscape beyond the awardee.
Tags
other-communications-equipment-manufactu, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $109.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200411!000006!5700!GV60 !ESC/DI !FA872504C0007 !A!N! !N! ! !20040816!20050516!064683464!008255408!016435559!N!NORTHROP GRUMMAN DEFENSE MISSI!12011 SUNSET HILLS ROAD !RESTON !VA!20190!66672!059!51!RESTON !FAIRFAX !VIRGINIA !+000003270000!N!N!000003270000!AC62!RDTE/ELECTRONICS & COMMUNICATION EQ-APPLIED RESEA !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !334290!E! !3! ! ! ! ! !999
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 $109.4 million.
What is the period of performance?
Start: 2004-08-16. End: 2011-12-31.
What specific technological advancements are expected from this contract, and how do they align with current defense modernization goals?
The contract focuses on 'Applied Research' for electronics and communication equipment. Specific advancements are not detailed, but likely include improvements in signal processing, encryption, range, and resilience for battlefield communications. Alignment with modernization goals would depend on whether these advancements address identified capability gaps or enhance existing systems against evolving threats.
Given the 7-year duration, what mechanisms are in place to mitigate the risk of technological obsolescence or scope creep?
Long-term contracts often include provisions for periodic reviews, phased deliveries, and potential contract modifications based on evolving requirements or technological advancements. However, without the contract's specific clauses, it's difficult to ascertain the exact mitigation strategies. Risk of scope creep is managed through detailed statements of work and change control processes.
How does the 'Full and Open Competition' process for this specific contract ensure optimal value for taxpayer money, considering the specialized nature of the equipment?
Full and open competition theoretically maximizes the pool of potential bidders, driving down prices through market forces. For specialized defense equipment, the challenge lies in defining clear, measurable requirements that allow for meaningful comparison between technically diverse proposals. The effectiveness depends on the clarity of the solicitation and the evaluation criteria used by the DoD.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1 RANCHO CARMEL DR, SAN DIEGO, CA, 92128
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-08-16
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2024-05-13
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