Navy Awards Northrop Grumman $28.8M for Next Generation Handheld Targeting Systems

Contract Overview

Contract Amount: $28,821,540 ($28.8M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2024-03-01

End Date: 2025-12-31

Contract Duration: 670 days

Daily Burn Rate: $43.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NEXT GENERATION HANDHELD TARGETING SYSTEM PRODUCTION SYSTEMS

Place of Performance

Location: APOPKA, SEMINOLE County, FLORIDA, 32703

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $28.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: NEXT GENERATION HANDHELD TARGETING SYSTEM PRODUCTION SYSTEMS Key points: 1. Significant investment in advanced defense technology. 2. Northrop Grumman is a major defense contractor, indicating established capabilities. 3. Potential for technological advancements in targeting systems. 4. Focus on optical instrument manufacturing suggests specialized production.

Value Assessment

Rating: good

The contract value of $28.8 million for a production system appears reasonable given the specialized nature of advanced targeting technology. Benchmarking against similar complex optical and targeting systems would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process that likely drove price discovery. The use of a delivery order under an existing contract structure implies a streamlined procurement for a specific need.

Taxpayer Impact: The $28.8 million expenditure supports the development and production of critical defense equipment, aiming to enhance military capabilities and potentially improve operational effectiveness.

Public Impact

Enhances warfighter capabilities with advanced targeting technology. Supports domestic manufacturing and technological innovation in the defense sector. Contributes to the modernization of military equipment for national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in advanced technology production.
  • Dependence on a single supplier for critical components.
  • Long-term sustainment and upgrade costs not detailed.

Positive Signals

  • Awarded under full and open competition.
  • Utilizes a firm-fixed-price contract type.
  • Supports modernization of essential military systems.

Sector Analysis

The Department of Defense frequently procures advanced optical and targeting systems. Spending in this sector is driven by the need for technological superiority and operational effectiveness, with significant investments often made in R&D and production of specialized equipment.

Small Business Impact

This contract was awarded to a large defense contractor, Northrop Grumman. There is no explicit indication of small business participation in this specific award, suggesting opportunities may lie in subcontracting roles.

Oversight & Accountability

The Department of the Navy's oversight is crucial for ensuring the successful delivery and performance of these advanced targeting systems. Contract clauses and performance metrics will be key to accountability.

Related Government Programs

  • Optical Instrument and Lens Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for technological obsolescence.
  • Reliance on a single prime contractor.
  • Complexity of advanced systems may lead to higher maintenance costs.
  • Limited visibility into subcontracting opportunities for small businesses.

Tags

optical-instrument-and-lens-manufacturin, department-of-defense, fl, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. NEXT GENERATION HANDHELD TARGETING SYSTEM PRODUCTION SYSTEMS

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 $28.8 million.

What is the period of performance?

Start: 2024-03-01. End: 2025-12-31.

What is the projected lifespan and upgrade path for these targeting systems to ensure long-term value?

The provided data does not detail the projected lifespan or specific upgrade path for the Next Generation Handheld Targeting Systems. Further analysis would be required to understand the long-term sustainment strategy and potential future investments needed to keep the technology current and effective against evolving threats.

How does the per-unit cost compare to similar commercially available or previously fielded targeting systems?

A direct per-unit cost comparison is not possible without knowing the total number of units being procured under this $28.8 million contract. Benchmarking against similar military-grade targeting systems, considering factors like resolution, range, and integrated features, would be necessary to assess cost-effectiveness.

What are the key performance metrics and testing protocols to ensure the effectiveness of these systems?

The data does not specify the key performance metrics or testing protocols. Typically, such contracts would include rigorous testing phases to validate accuracy, durability, and operational readiness under various environmental conditions. The Department of the Navy would establish these to ensure the systems meet stringent military requirements.

Industry Classification

NAICS: ManufacturingCommercial and Service Industry Machinery ManufacturingOptical Instrument and Lens Manufacturing

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M6785421R1877

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 2787 S ORANGE BLOSSOM TRL, APOPKA, FL, 32703

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: $28,821,540

Exercised Options: $28,821,540

Current Obligation: $28,821,540

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $13,526,573

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: M6785422D1011

IDV Type: IDC

Timeline

Start Date: 2024-03-01

Current End Date: 2025-12-31

Potential End Date: 2025-12-31 00:00:00

Last Modified: 2024-03-11

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