DoD's BACN program awards $29.9M to Northrop Grumman for critical airborne communications support

Contract Overview

Contract Amount: $29,910,755 ($29.9M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2023-03-08

End Date: 2025-02-28

Contract Duration: 723 days

Daily Burn Rate: $41.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: BATTLEFIELD AIRBORNE COMMUNICATIONS NODE (BACN)

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92128

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $29.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: BATTLEFIELD AIRBORNE COMMUNICATIONS NODE (BACN) Key points: 1. Contract supports essential battlefield communications, enhancing operational effectiveness. 2. Northrop Grumman, a major defense contractor, holds significant experience in aerospace and defense systems. 3. The contract's duration suggests a sustained need for these specialized services. 4. Performance is benchmarked against similar complex aerospace support contracts. 5. This award falls within the broader category of air transportation support activities. 6. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight.

Value Assessment

Rating: good

The award of $29.9 million for the BATTLEFIELD AIRBORNE COMMUNICATIONS NODE (BACN) program appears reasonable given the specialized nature of airborne communication systems. While direct cost comparisons are difficult without detailed scope breakdowns, the contract's duration of approximately two years suggests a steady investment in maintaining critical operational capabilities. Benchmarking against similar complex aerospace support contracts would be necessary for a more precise value-for-money assessment, but the amount is not immediately indicative of overspending for such a vital defense function.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while a competitive process was intended, specific sources may have been excluded, potentially limiting the breadth of competition. The exact reasons for exclusion are not detailed, but this approach can sometimes lead to fewer bidders than a truly open competition. Further analysis would be needed to understand the justification for excluding certain sources and its impact on the final price.

Taxpayer Impact: A limited competition may result in higher prices for taxpayers compared to a fully open process with maximum bidder participation. It is crucial to ensure that the exclusion of sources was justified and did not unduly restrict competition.

Public Impact

Provides critical real-time voice and data communications for warfighters in contested environments. Enhances situational awareness and command and control capabilities for air and ground forces. Supports joint military operations across various branches of the U.S. armed forces. The services delivered are essential for maintaining operational effectiveness and troop safety. Geographic impact is global, wherever U.S. forces are deployed and require advanced communication links. Workforce implications include specialized technical and engineering roles within Northrop Grumman.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Cost Plus Fixed Fee (CPFF) contract type if not rigorously managed.
Limited competition may have restricted price discovery, potentially impacting overall value for money.
Dependence on a single contractor for critical communication systems could pose long-term strategic risks.

Positive Signals

Northrop Grumman is a reputable defense contractor with a strong track record in complex systems.
The BACN program is vital for current military operations, indicating a clear and present need.
The contract duration suggests a stable and predictable requirement, allowing for efficient resource planning.

Sector Analysis

The BATTLEFIELD AIRBORNE COMMUNICATIONS NODE (BACN) program falls within the broader aerospace and defense sector, specifically focusing on advanced communication systems. This sector is characterized by high technological barriers to entry, significant R&D investment, and long-term government contracts. Spending in this area is driven by national security requirements and the need for technologically superior military platforms. Comparable spending benchmarks would involve other large-scale defense communication system procurements or upgrades, often running into hundreds of millions or billions of dollars over their lifecycle.

Small Business Impact

This contract was awarded to Northrop Grumman Systems Corporation and does not indicate any specific small business set-aside provisions. While the prime contractor is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Northrop Grumman's procurement practices and the specific needs of the BACN program. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force, a component of the Department of Defense. Mechanisms likely include regular program reviews, technical inspections, and financial audits to ensure compliance with contract terms and performance standards. The Cost Plus Fixed Fee structure necessitates close monitoring of costs incurred by the contractor. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may be classified.

Related Government Programs

Airborne Command and Control Systems
Tactical Data Links
Military Satellite Communications
Network-Centric Warfare Systems
Joint All-Domain Command and Control (JADC2)

Risk Flags

Limited Competition
Cost Plus Fixed Fee Contract Type
Potential for Technological Obsolescence
Cybersecurity Vulnerabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.9 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 $29.9 million.

What is the period of performance?

Start: 2023-03-08. End: 2025-02-28.

What is the historical spending trend for the BATTLEFIELD AIRBORNE COMMUNICATIONS NODE (BACN) program?

Historical spending data for the BACN program indicates a consistent investment in maintaining and upgrading these critical communication capabilities. While the specific award amount of $29.9 million is for a defined period (March 2023 - February 2025), the program has likely seen significant funding over several years to develop, deploy, and sustain the BACN fleet. Analyzing annual obligations and contract modifications over the program's lifecycle would reveal trends in spending, potentially showing increases due to technological upgrades, expanded operational use, or decreases as systems mature. Without access to detailed historical obligation data, it's challenging to provide precise figures, but the sustained nature of such a program suggests multi-year investments often totaling hundreds of millions of dollars.

How does the pricing of this contract compare to similar airborne communication systems?

Benchmarking the pricing of this $29.9 million contract for the BATTLEFIELD AIRBORNE COMMUNICATIONS NODE (BACN) program against similar airborne communication systems is complex due to the unique nature of military-specific technologies and operational requirements. Direct comparisons are difficult without access to proprietary pricing structures and detailed scope-of-work for comparable systems. However, the amount appears consistent with the procurement or sustainment of specialized, high-technology aerospace systems for defense applications. Factors such as system complexity, required reliability, integration with existing platforms, and the competitive landscape for such niche capabilities heavily influence pricing. A thorough analysis would require comparing cost breakdowns, performance metrics, and contract types (e.g., fixed-price vs. cost-plus) of analogous systems.

What are the primary risks associated with this contract and the BACN program?

The primary risks associated with this contract and the BACN program include technological obsolescence, as airborne communication systems must constantly evolve to counter emerging threats and integrate new capabilities. Another significant risk is the potential for cost overruns, particularly given the Cost Plus Fixed Fee (CPFF) contract type, which requires diligent oversight to manage expenses effectively. Dependence on a single, critical system like BACN also presents a strategic risk; any disruption or failure could severely impact operational effectiveness. Furthermore, the 'limited' competition aspect raises concerns about potential price inefficiencies and reduced innovation compared to a fully open market. Ensuring robust cybersecurity measures is also paramount to protect sensitive communication links from interference or compromise.

What is Northrop Grumman's track record with similar defense communication contracts?

Northrop Grumman Systems Corporation has a substantial and generally strong track record in developing, manufacturing, and sustaining complex defense systems, including communication and avionics platforms. They are a major player in the aerospace and defense industry, frequently awarded large government contracts. Their experience spans various military platforms and communication technologies, often involving advanced integration and high-reliability requirements. While specific contract performance details (e.g., on-time delivery, cost performance, technical success) for every program are not always publicly available, Northrop Grumman's continued success in securing significant defense contracts suggests a history of meeting or exceeding government expectations in areas relevant to the BACN program. Past performance reviews and contract award histories would provide more granular insights.

How effective is the BACN program in achieving its stated communication objectives?

The BATTLEFIELD AIRBORNE COMMUNICATIONS NODE (BACN) program is widely regarded as highly effective and critical for modern military operations. Its primary objective is to provide seamless, real-time voice and data communications between disparate platforms and ground forces, bridging communication gaps in challenging or contested environments. Reports and operational feedback often highlight BACN's role in enhancing situational awareness, improving command and control, and enabling effective joint operations. Its ability to relay information between aircraft, ground units, and command centers, even when they use different communication systems, is a key factor in its success. The program's continued funding and operational deployment underscore its perceived effectiveness in meeting vital warfighting needs.

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

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: $29,910,755

Exercised Options: $29,910,755

Current Obligation: $29,910,755

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $9,256,339

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