DoD Awards $46M Task Order to Northrop Grumman for G/ATOR SELS Software, Logistics, and Cybersecurity
Contract Overview
Contract Amount: $45,965,224 ($46.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-05-09
End Date: 2026-05-08
Contract Duration: 1,095 days
Daily Burn Rate: $42.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: G/ATOR SELS BOA TASK ORDER FOR SOFTWARE, LOGISTICS AND CYBERSECURITY INFRASTRUCTURE.
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $46.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: G/ATOR SELS BOA TASK ORDER FOR SOFTWARE, LOGISTICS AND CYBERSECURITY INFRASTRUCTURE. Key points: 1. Significant award for critical infrastructure support to the Department of the Navy. 2. Northrop Grumman is a major defense contractor, indicating established capabilities. 3. Sole-source award raises questions about price discovery and potential for overpayment. 4. The contract spans software, logistics, and cybersecurity, covering diverse operational needs.
Value Assessment
Rating: questionable
The contract's value of $45.9M for a 3-year period is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar integrated software, logistics, and cybersecurity services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition for this significant contract could lead to suboptimal use of taxpayer funds if the price is not benchmarked against market alternatives.
Public Impact
Ensures continued operational support for critical Navy systems. Potential for increased cybersecurity resilience for naval assets. Supports advanced logistics and software infrastructure for the fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- High contract value without competitive benchmarking.
- Potential for cost overruns due to lack of competitive pressure.
Positive Signals
- Addresses critical software, logistics, and cybersecurity needs.
- Supports a major defense agency (Department of the Navy).
- Long-term contract provides stability for essential services.
Sector Analysis
This contract falls within the IT and Defense sectors, focusing on integrated systems and services. Spending benchmarks for similar complex IT and cybersecurity infrastructure contracts can vary widely, but sole-source awards often deviate from competitive norms.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct small business participation.
Oversight & Accountability
As a sole-source award, oversight is crucial to ensure fair pricing and effective service delivery. The Department of the Navy's contracting officers must diligently monitor performance and costs to mitigate risks associated with non-competitive procurement.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns without competition.
- Limited transparency on price justification.
- Cybersecurity risks require robust oversight.
- Dependence on a single large contractor.
Tags
search-detection-navigation-guidance-aer, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. G/ATOR SELS BOA TASK ORDER FOR SOFTWARE, LOGISTICS AND CYBERSECURITY INFRASTRUCTURE.
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 Navy).
What is the total obligated amount?
The obligated amount is $46.0 million.
What is the period of performance?
Start: 2023-05-09. End: 2026-05-08.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. The contracting officer must still conduct a price analysis, comparing proposed costs to historical data, commercial prices, or independent government estimates to ensure the price is fair and reasonable, even without competition.
What are the specific cybersecurity risks being addressed by this contract, and what are the potential consequences if these are not adequately mitigated?
This contract likely addresses evolving cyber threats to naval systems, including network vulnerabilities, data breaches, and operational disruptions. Failure to mitigate these risks could compromise mission effectiveness, lead to significant financial losses, and potentially endanger personnel and national security.
How will the effectiveness of the software, logistics, and cybersecurity infrastructure be measured and validated throughout the contract period?
Effectiveness will likely be measured through performance metrics, key performance indicators (KPIs), and regular technical reviews. This includes assessing system uptime, response times for cyber threats, efficiency of logistics operations, and successful implementation of software updates, all tied to contract deliverables.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1580A W NURSERY RD, LINTHICUM HEIGHTS, MD, 21090
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: $47,495,448
Exercised Options: $47,465,224
Current Obligation: $45,965,224
Actual Outlays: $2,838,814
Subaward Activity
Number of Subawards: 30
Total Subaward Amount: $6,677,913
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785420G0032
IDV Type: BOA
Timeline
Start Date: 2023-05-09
Current End Date: 2026-05-08
Potential End Date: 2026-05-08 00:00:00
Last Modified: 2025-09-12
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