DoD's $33.6M Northrop Grumman Task Order for Navigation Systems Lacks Competition
Contract Overview
Contract Amount: $33,561,187 ($33.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-07
End Date: 2025-12-10
Contract Duration: 825 days
Daily Burn Rate: $40.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: OTHER DIRECT COSTS (ODC) AND TRAVEL TO SUPPORT SELS REG TASK ORDER
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $33.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: OTHER DIRECT COSTS (ODC) AND TRAVEL TO SUPPORT SELS REG TASK ORDER Key points: 1. Spending is concentrated with a single large contractor, Northrop Grumman. 2. The contract supports navigation systems, a critical but potentially competitive area. 3. Risk of overpayment exists due to the lack of competitive bidding. 4. The sector is specialized, focusing on advanced navigation and guidance instruments.
Value Assessment
Rating: questionable
The contract's value of $33.6 million for navigation systems is significant. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts for specialized navigation equipment.
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 potentially leads to higher costs for taxpayers as competitive pressure is absent.
Taxpayer Impact: The lack of competition on this $33.6 million award means taxpayers may not be receiving the best possible price for these navigation systems.
Public Impact
Taxpayers may be overpaying for critical navigation technology due to the absence of competitive bidding. The Department of the Navy is relying on a single vendor for essential navigation system support. This award highlights potential vulnerabilities in the procurement process for specialized defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 40 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Sole-source award
Positive Signals
- Supports critical defense systems
- Long-term contract duration
Sector Analysis
This contract falls within the specialized manufacturing sector for navigation, guidance, and control systems. Benchmarks are difficult to establish due to the niche nature and lack of competitive data for this specific task order.
Small Business Impact
There is no indication that small businesses were involved in this specific task order, as it was awarded directly to Northrop Grumman. Future opportunities for small businesses in this supply chain are not evident from this data.
Oversight & Accountability
The award was a delivery order under a larger contract, suggesting some level of pre-existing oversight. However, the sole-source nature of this specific order warrants scrutiny regarding the justification for not seeking competition.
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 inflated costs due to no competition.
- Reliance on a single large contractor for critical systems.
- Limited transparency on procurement justification.
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 $33.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. OTHER DIRECT COSTS (ODC) AND TRAVEL TO SUPPORT SELS REG TASK ORDER
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 $33.6 million.
What is the period of performance?
Start: 2023-09-07. End: 2025-12-10.
What was the justification for awarding this task order on a sole-source basis, given the potential for competition in navigation system manufacturing?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. Without access to the specific contract file and justification documentation, it's impossible to definitively state why competition was bypassed for this $33.6 million task order. Further investigation into the contract's history and the government's rationale is needed.
What are the potential risks associated with relying on a single contractor for critical navigation systems over an extended period?
Relying on a single contractor for critical navigation systems poses several risks. These include potential price escalation without competitive pressure, vendor lock-in making future transitions difficult, reduced innovation due to lack of market competition, and supply chain vulnerability if the sole provider faces operational issues or goes out of business.
How does the firm fixed-price contract type mitigate or exacerbate the risks associated with this sole-source award?
A firm fixed-price (FFP) contract type is generally favorable to the government as it shifts cost risk to the contractor. However, in a sole-source scenario, the 'fixed price' may be inflated due to the absence of competition. While FFP protects against cost overruns for the government, it doesn't guarantee a fair or competitive price was established initially.
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: $33,561,187
Exercised Options: $33,561,187
Current Obligation: $33,561,187
Actual Outlays: $2,294,086
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $4,120,661
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: 2023-09-07
Current End Date: 2025-12-10
Potential End Date: 2025-12-10 00:00:00
Last Modified: 2025-09-09
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)