DoD Awards Northrop Grumman $50.5M for Deep Space Radar, Lacking Competition
Contract Overview
Contract Amount: $50,546,291 ($50.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-02-03
End Date: 2029-11-11
Contract Duration: 1,742 days
Daily Burn Rate: $29.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: DEEP SPACE ADVANCED RADAR CAPABILITY SITE 2 PRODUCTION
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80916
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $50.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DEEP SPACE ADVANCED RADAR CAPABILITY SITE 2 PRODUCTION Key points: 1. Significant investment in advanced radar technology for space surveillance. 2. Sole-source award to Northrop Grumman raises concerns about price discovery. 3. Potential for cost overruns due to Cost Plus Incentive Fee structure. 4. Limited public information on the specific capabilities and necessity of Site 2.
Value Assessment
Rating: questionable
The contract type (Cost Plus Incentive Fee) can lead to higher costs than fixed-price contracts, especially without strong competition. Benchmarking is difficult without detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for this radar capability.
Public Impact
Enhances national security through advanced space surveillance capabilities. Supports the Department of the Air Force's strategic objectives in space. Potential for technological advancements in radar and deep space monitoring.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency on specific needs
Positive Signals
- Critical national security capability
- Advanced technology development
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on advanced radar systems. Spending in this area is often driven by national security imperatives and technological competition.
Small Business Impact
There is no indication that small businesses are involved in this specific contract award, which is a sole-source award to a large prime contractor.
Oversight & Accountability
Oversight will be crucial to ensure Northrop Grumman manages costs effectively under the Cost Plus Incentive Fee structure and delivers the required capabilities on schedule.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competitive bidding may lead to inflated costs.
- Cost-plus contract type increases risk of cost overruns.
- Limited transparency regarding the specific technological requirements and justification.
- Long contract duration (over 4 years) increases exposure to changing requirements and market conditions.
Tags
search-detection-navigation-guidance-aer, department-of-defense, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. DEEP SPACE ADVANCED RADAR CAPABILITY SITE 2 PRODUCTION
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 $50.5 million.
What is the period of performance?
Start: 2025-02-03. End: 2029-11-11.
What is the justification for a sole-source award for this critical radar capability, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can meet requirements. However, without competition, ensuring fair pricing relies heavily on robust government negotiation, independent cost estimates, and stringent oversight of the contractor's incurred costs and performance incentives.
What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for a program of this magnitude and duration?
CPIF contracts carry inherent risks of cost overruns as the contractor is reimbursed for allowable costs plus a fee that is adjusted based on performance against targets. For a long-duration, high-value program like this, risks include potential for scope creep, difficulty in establishing realistic targets, and the government potentially paying a premium if incentives are not carefully structured or if the contractor's efficiency is not maximized.
How will the effectiveness of the Deep Space Advanced Radar Capability Site 2 be measured, and what are the key performance indicators?
Effectiveness will likely be measured by the system's ability to detect, track, and identify space objects within its designated deep space domain, meeting specific resolution and accuracy requirements. Key performance indicators would include metrics related to detection range, tracking accuracy, data latency, system availability, and successful integration with broader space situational awareness networks.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 3535 NORTHROP GRUMMAN PT, COLORADO SPRINGS, CO, 80916
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $205,185,783
Exercised Options: $205,185,783
Current Obligation: $50,546,291
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $442,150
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-02-03
Current End Date: 2029-11-11
Potential End Date: 2029-11-11 00:00:00
Last Modified: 2025-09-19
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