DoD's BACN Program Sustains Operations with $280M Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $280,221,230 ($280.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-01-21
End Date: 2024-04-23
Contract Duration: 1,188 days
Daily Burn Rate: $235.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BATTLEFIELD AIRBORNE COMMUNICATIONS NODE (BACN) DEPLOYED OPERATIONAL SUSTAINMENT
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92128
Plain-Language Summary
Department of Defense obligated $280.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: BATTLEFIELD AIRBORNE COMMUNICATIONS NODE (BACN) DEPLOYED OPERATIONAL SUSTAINMENT Key points: 1. The contract supports the critical Battlefield Airborne Communications Node (BACN) system, essential for battlefield connectivity. 2. Northrop Grumman is the incumbent contractor, suggesting a strong existing relationship and technical expertise. 3. The contract's duration and value indicate a significant, long-term investment in maintaining this capability. 4. The 'Other Support Activities for Air Transportation' PSC code highlights the specialized nature of the service.
Value Assessment
Rating: good
The contract value of $280.2M over approximately 3.25 years suggests a substantial investment. Benchmarking against similar complex aerospace sustainment contracts would be necessary for a precise assessment, but the scale indicates a significant program.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while competition was sought, specific criteria or prior exclusions limited the pool of potential bidders, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used to ensure the operational readiness and effectiveness of a critical military communications system, directly supporting warfighter capabilities.
Public Impact
Ensures vital communication links for U.S. and allied forces in contested environments. Supports intelligence, surveillance, and reconnaissance (ISR) missions by enabling data sharing. Contributes to enhanced situational awareness and command and control on the battlefield. Underpins joint operations by bridging communication gaps between different platforms and services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Reliance on a single provider for critical sustainment.
- Potential for scope creep in long-term operational sustainment contracts.
Positive Signals
- Ensures continuity of a critical warfighting capability.
- Northrop Grumman's incumbency suggests proven performance.
- Clear operational need for the BACN system.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on specialized air transportation support services. Spending in this area is driven by national security requirements and the need for advanced communication and operational capabilities.
Small Business Impact
The data indicates the prime contractor is Northrop Grumman Systems Corporation. There is no explicit information regarding small business participation in this specific award, which warrants further investigation to ensure opportunities for small businesses are being maximized.
Oversight & Accountability
The Department of the Air Force is the procuring entity. Oversight would typically involve contract performance monitoring, milestone tracking, and financial reviews to ensure the contractor meets requirements and stays within budget. The 'Delivery Order' nature suggests it's part of a larger IDIQ or contract vehicle.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition raises cost concerns.
- Potential for sole-source dependency.
- Lack of explicit small business participation data.
- Complexity of sustainment for advanced systems.
- Long contract duration requires ongoing oversight.
Tags
other-support-activities-for-air-transpo, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $280.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. BATTLEFIELD AIRBORNE COMMUNICATIONS NODE (BACN) DEPLOYED OPERATIONAL SUSTAINMENT
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 $280.2 million.
What is the period of performance?
Start: 2021-01-21. End: 2024-04-23.
What is the specific technical capability provided by the BACN system, and how does its sustainment directly impact mission success?
The BACN system provides a robust, airborne, reconfigurable network that bridges communication gaps between disparate battlefield platforms and ground forces. Its sustainment is crucial for ensuring continuous connectivity, enabling real-time data sharing, command and control, and situational awareness, all of which are vital for successful mission execution in complex operational environments.
Given the 'exclusion of sources' clause, what were the justifications for limiting the competitive pool, and how was fair and reasonable pricing ensured?
Justifications for excluding sources typically involve technical uniqueness, proprietary data, or prior experience requirements. Fair and reasonable pricing is usually determined through detailed cost analysis, comparison with historical data, or market research. The contracting officer must document these justifications and price evaluations thoroughly to ensure accountability.
What are the long-term strategic implications of relying on Northrop Grumman for BACN sustainment, particularly concerning technological evolution and potential future competition?
Long-term reliance on a single provider can create vendor lock-in and potentially stifle innovation if not managed proactively. Strategic implications include ensuring Northrop Grumman continues to invest in upgrading BACN capabilities to meet evolving threats and technologies. Future competition could be fostered through clear requirements for technology insertion and potential future contract structures.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › QUALITY CONTROL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 15120 INNOVATION DR, SAN DIEGO, CA, 92128
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $296,836,696
Exercised Options: $296,836,696
Current Obligation: $280,221,230
Actual Outlays: $166,711
Subaward Activity
Number of Subawards: 53
Total Subaward Amount: $5,315,254
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA872621D0001
IDV Type: IDC
Timeline
Start Date: 2021-01-21
Current End Date: 2024-04-23
Potential End Date: 2024-04-23 00:00:00
Last Modified: 2024-12-18
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)