DoD's $30M BACN contract awarded to Northrop Grumman faces scrutiny over competition and value
Contract Overview
Contract Amount: $30,010,235 ($30.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-09-28
End Date: 2024-07-17
Contract Duration: 658 days
Daily Burn Rate: $45.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BATTLEFIELD AIRBORNE COMMUNICATIONS NODE (BACN)
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92128
Plain-Language Summary
Department of Defense obligated $30.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: BATTLEFIELD AIRBORNE COMMUNICATIONS NODE (BACN) Key points: 1. The $30M contract for the Battlefield Airborne Communications Node (BACN) was awarded to Northrop Grumman. 2. Competition was limited, with a 'full and open competition after exclusion of sources' method used. 3. The contract's value and the impact of the limited competition on price discovery warrant further analysis. 4. The sector is Defense, specifically Air Transportation support.
Value Assessment
Rating: questionable
The awarded amount of $30,010,235.45 for the BACN system needs comparison against similar DoD contracts for airborne communication nodes. Without benchmark data, assessing if this price is competitive or inflated is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract utilized 'full and open competition after exclusion of sources,' indicating a non-standard approach that may have restricted the pool of potential bidders. This limited competition could have impacted price discovery, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The limited competition raises concerns about whether the government secured the best possible price, potentially impacting taxpayer value.
Public Impact
Ensures critical battlefield communication capabilities for the Air Force. Supports ongoing military operations by providing a vital data link. The contract's duration extends into mid-2024, impacting near-term budget allocations. Potential for cost overruns due to limited competition needs monitoring.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method
- Lack of clear per-unit cost benchmark
- No small business participation noted
Positive Signals
- Provides essential battlefield communication
- Supports critical Air Force operations
- Firm fixed price contract type
Sector Analysis
This contract falls within the Defense sector, specifically supporting air transportation activities. Spending benchmarks in this niche area are difficult to ascertain without more specific data on similar airborne communication systems.
Small Business Impact
The provided data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). Further investigation is needed to determine if opportunities were missed for small businesses in supporting roles or subcontracting.
Oversight & Accountability
The 'full and open competition after exclusion of sources' clause suggests a need for robust oversight to ensure the justification for excluding other sources was sound and that the process was fair. Accountability for the pricing and performance rests with the Department of the Air Force.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition raises value concerns.
- Lack of small business participation.
- Justification for source exclusion requires review.
- Potential for price inflation due to competition method.
- No clear per-unit cost benchmark provided.
Tags
other-support-activities-for-air-transpo, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. BATTLEFIELD AIRBORNE COMMUNICATIONS NODE (BACN)
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 $30.0 million.
What is the period of performance?
Start: 2022-09-28. End: 2024-07-17.
What was the specific justification for excluding sources in the competition for the BACN contract?
The justification for excluding sources in the BACN contract competition is not detailed in the provided data. Typically, such exclusions require a strong rationale, such as unique capabilities, proprietary technology, or urgent needs that only a specific vendor can meet. A thorough review of the contract's justification documentation is necessary to understand the rationale and assess its validity.
How does the cost of this BACN system compare to similar airborne communication systems procured by other agencies or allies?
Direct cost comparison is challenging without specific benchmark data for similar airborne communication systems. The $30M award for the BACN system needs to be evaluated against the capabilities, lifespan, and technological sophistication of comparable systems. The limited competition may have inflated the price, making external benchmarks crucial for a fair assessment of value for money.
What are the performance metrics and success rates for the BACN system under this contract?
Performance metrics and success rates for the BACN system under this specific contract are not detailed in the provided data. While the system provides critical communication, its effectiveness is typically measured by uptime, data throughput, reliability in various operational environments, and user satisfaction. The Department of the Air Force should have established KPIs to monitor these aspects.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA872622R0067
Pricing Type: FIRM FIXED PRICE (J)
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: $30,010,235
Exercised Options: $30,010,235
Current Obligation: $30,010,235
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $6,646,725
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: 2022-09-28
Current End Date: 2024-07-17
Potential End Date: 2024-07-17 00:00:00
Last Modified: 2024-06-12
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)