DoD awards Northrop Grumman $13.85M for Expeditionary Airport Surveillance Radar software
Contract Overview
Contract Amount: $13,850,440 ($13.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-12-20
End Date: 2026-01-30
Contract Duration: 772 days
Daily Burn Rate: $17.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: EXPEDITIONARY AIRPORT SURVEILLANCE RADAR (EASR) SOFTWARE DEVELOPMENT FOR THE GROUND/AIR TASK ORIENTED RADAR (G/ATOR)
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $13.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: EXPEDITIONARY AIRPORT SURVEILLANCE RADAR (EASR) SOFTWARE DEVELOPMENT FOR THE GROUND/AIR TASK ORIENTED RADAR (G/ATOR) Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for EASR software development. 2. The contract is a delivery order under a larger contract, valued at $13.85M. 3. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. The North American Industry Classification System (NAICS) code is 334511 for instrument manufacturing.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts. Benchmarking against similar software development contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. Lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for this software development.
Public Impact
Enhances critical surveillance capabilities for ground and air operations. Supports the Department of the Navy's operational readiness. Potential for follow-on contracts and sustainment, impacting long-term spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type carries inherent cost risk.
- Lack of detailed cost data hinders robust value assessment.
Positive Signals
- Addresses a critical defense capability.
- Supports ongoing military operations.
Sector Analysis
This contract falls within the defense sector, specifically focusing on radar systems and software development. Spending in this area is driven by technological advancements and operational requirements.
Small Business Impact
No information is available regarding small business participation in this contract. Sole-source awards often exclude opportunities for small businesses.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The Cost Plus Fixed Fee structure requires diligent monitoring to control costs and ensure performance.
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
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Lack of transparency in justification for sole-sourcing
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 $13.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. EXPEDITIONARY AIRPORT SURVEILLANCE RADAR (EASR) SOFTWARE DEVELOPMENT FOR THE GROUND/AIR TASK ORIENTED RADAR (G/ATOR)
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 $13.9 million.
What is the period of performance?
Start: 2023-12-20. End: 2026-01-30.
What specific performance metrics will be used to evaluate the success of the EASR software development?
Performance metrics are not detailed in the provided data. Typically, for software development, metrics would include adherence to technical specifications, successful integration testing, timely delivery of milestones, and operational effectiveness in simulated or real-world scenarios. The government should ensure clear, measurable, and achievable performance standards are established and monitored throughout the contract lifecycle.
What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award is not provided. Common reasons include unique capabilities of the contractor, urgent and compelling needs where competition is impractical, or if the item is only available from a single source. Without this justification, it's difficult to assess if the government adequately explored competitive options.
How will the government ensure the fixed fee component of the Cost Plus Fixed Fee contract provides adequate incentive for cost control?
The effectiveness of the fixed fee in controlling costs depends on the negotiation process and the contractor's performance incentives. The government should ensure the fee is reasonable and that performance-based incentives or penalties are incorporated, if possible, within the Cost Plus Fixed Fee structure. Regular audits and cost reviews are crucial to manage expenditures effectively.
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: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
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: $13,850,440
Exercised Options: $13,850,440
Current Obligation: $13,850,440
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $190,986
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: 2023-12-20
Current End Date: 2026-01-30
Potential End Date: 2026-01-30 00:00:00
Last Modified: 2025-12-15
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