DoD Awards Northrop Grumman $39.4M for Naval Sustaining Engineering and Logistics Support
Contract Overview
Contract Amount: $39,361,325 ($39.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-05-09
End Date: 2026-02-27
Contract Duration: 659 days
Daily Burn Rate: $59.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROCUREMENT OF SUSTAINING ENGINEERING AND LOGISTICS SUPPORT.
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $39.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: PROCUREMENT OF SUSTAINING ENGINEERING AND LOGISTICS SUPPORT. Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on critical naval systems support. 3. Long-term contract with significant value. 4. Potential for limited competition due to specialized nature.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not closely managed. The awarded amount is substantial, and benchmarking against similar contracts for sustaining engineering and logistics is difficult without more specific data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, indicating a limited competition approach. This may be due to the specialized nature of the support required for specific naval systems, potentially limiting the pool of qualified contractors and impacting price discovery.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible price for these critical support services.
Public Impact
Ensures continued operational readiness of naval vessels. Supports advanced technology systems critical for national security. Impacts the supply chain for naval maintenance and repair.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long duration
Positive Signals
- Supports critical naval systems
- Ensures operational readiness
Sector Analysis
This contract falls within the defense sector, specifically supporting naval systems manufacturing and maintenance. Spending in this area is often characterized by long-term contracts with a few large, specialized contractors due to high barriers to entry and complex technological requirements.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
Oversight will be crucial given the cost-plus fixed fee structure and limited competition to ensure efficient use of funds and prevent cost creep. The Department of the Navy is responsible for monitoring performance and expenditures.
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
- Potential for cost overruns due to CPFF structure.
- Lack of competitive bidding may lead to suboptimal pricing.
- Dependency on a single contractor for critical support.
- Limited transparency on specific system support.
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 $39.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. PROCUREMENT OF SUSTAINING ENGINEERING AND LOGISTICS SUPPORT.
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 $39.4 million.
What is the period of performance?
Start: 2024-05-09. End: 2026-02-27.
What specific naval systems does this contract support, and what is the criticality of this support to fleet readiness?
The contract supports sustaining engineering and logistics for unspecified naval systems. Understanding the specific systems (e.g., radar, navigation, combat systems) and their criticality to fleet readiness is essential for assessing the true value of this award. Without this detail, it's difficult to gauge the necessity and urgency driving the limited competition.
What is the justification for not competing this contract, and what steps were taken to ensure fair pricing?
The justification for limited competition is not provided but likely stems from the specialized nature of sustaining engineering and logistics for specific naval platforms. The Department of Defense should have conducted market research to identify potential sources and negotiated the price rigorously, but the absence of competition inherently limits the government's leverage.
How will the performance and costs of this Cost Plus Fixed Fee contract be monitored to ensure effectiveness and prevent overruns?
Effective oversight requires robust performance metrics tied to system availability and reliability, alongside stringent financial controls. The Department of the Navy must actively track expenditures against the fixed fee and the estimated cost ceiling, conduct regular audits, and ensure the contractor meets all technical and logistical milestones to mitigate risks associated with this contract type.
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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $39,361,325
Exercised Options: $39,361,325
Current Obligation: $39,361,325
Actual Outlays: $6,370,510
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $3,208,747
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: 2024-05-09
Current End Date: 2026-02-27
Potential End Date: 2026-02-27 00:00:00
Last Modified: 2025-09-26
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)