DoD awards Northrop Grumman $33.5M for G/ATOR radar sustainment, a sole-source contract

Contract Overview

Contract Amount: $33,477,743 ($33.5M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2025-09-26

End Date: 2026-09-25

Contract Duration: 364 days

Daily Burn Rate: $92.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CONTINUED SOFTWARE SUSTAINMENT DEVELOPMENT WORK FOR 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 $33.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CONTINUED SOFTWARE SUSTAINMENT DEVELOPMENT WORK FOR GROUND/AIR TASK ORIENTED RADAR (G/ATOR). Key points: 1. Contract focuses on continued sustainment and development for the G/ATOR radar system. 2. Sole-source award raises questions about competition and potential price efficiencies. 3. Performance period of one year suggests a need for ongoing support. 4. Cost-plus-fixed-fee structure may incentivize cost overruns if not closely managed. 5. The contract value is modest relative to major defense procurement programs. 6. This award is part of a larger sustainment strategy for critical radar technology.

Value Assessment

Rating: fair

The contract value of $33.5 million for one year of software sustainment and development is difficult to benchmark without more detailed cost breakdowns. As a sole-source award, direct comparisons to similar competitively bid contracts are not feasible. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex development, carries inherent risks of cost escalation if not rigorously overseen. The provided data does not include specific performance metrics or historical cost trends to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of the Navy did not solicit bids from multiple offerors. This approach is typically used when only one source is capable of meeting the requirement, often due to proprietary technology, unique expertise, or urgent needs. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple companies had competed.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. The government relies on negotiation and oversight to ensure fair pricing in sole-source situations.

Public Impact

The primary beneficiaries are the Department of the Navy and its operational units relying on the G/ATOR radar system for situational awareness. Services delivered include software sustainment, development, and potentially upgrades for the radar system. Geographic impact is likely concentrated around naval aviation and expeditionary warfare units. Workforce implications include continued employment for specialized software engineers and technical staff at Northrop Grumman.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Cost-plus-fixed-fee contract type can incentivize higher spending if not managed effectively.
Lack of detailed cost data makes independent value assessment challenging.

Positive Signals

Ensures continued operational readiness of critical G/ATOR radar systems.
Maintains specialized technical expertise within Northrop Grumman for radar sustainment.
Provides a predictable support structure for a key defense technology.

Sector Analysis

The Ground/Air Task Oriented Radar (G/ATOR) system is a sophisticated piece of defense technology. This contract falls within the broader defense electronics and radar manufacturing sector, which is characterized by high R&D costs, long product cycles, and significant government procurement. The market is dominated by a few large defense contractors with specialized capabilities. Spending on radar sustainment is crucial for maintaining the effectiveness of deployed military assets, ensuring they remain operational and technologically relevant.

Small Business Impact

This contract does not appear to involve small business set-asides, as it is a sole-source award to a large prime contractor, Northrop Grumman. There is no explicit information regarding subcontracting plans for small businesses within this specific award. The focus is on the prime contractor's direct sustainment and development work.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined in the contract terms, including performance standards and reporting requirements. Transparency may be limited due to the sole-source nature and the proprietary aspects of software sustainment. The Inspector General's office for the Department of Defense could investigate if specific concerns or allegations arise.

Related Government Programs

G/ATOR Radar System Procurement
Naval Aviation Systems Support
Defense Radar Technology Development
Ground and Air Surveillance Systems

Risk Flags

Sole-source award may limit cost savings.
Cost-plus-fixed-fee structure requires robust oversight to manage costs.
Lack of competition hinders price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CONTINUED SOFTWARE SUSTAINMENT DEVELOPMENT WORK FOR 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 $33.5 million.

What is the period of performance?

Start: 2025-09-26. End: 2026-09-25.

What is the historical spending trend for the G/ATOR radar system sustainment with Northrop Grumman?

Detailed historical spending data for the G/ATOR radar system sustainment specifically with Northrop Grumman is not provided in the current data extract. However, the current award of $33.5 million for a one-year period suggests a significant ongoing investment. To understand the trend, one would need to examine prior contract awards for sustainment, development, and any modifications related to the G/ATOR system over its lifecycle. Analyzing year-over-year spending, the nature of the work performed (e.g., routine maintenance vs. major upgrades), and the pricing structures of previous contracts would reveal whether spending has been consistent, increasing, or decreasing. Without this historical context, it's difficult to assess if the current award represents a typical expenditure or a deviation from past patterns.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for software sustainment in the defense sector?

The Cost-Plus-Fixed-Fee (CPFF) contract type is common in defense for research, development, and complex sustainment where the scope of work may evolve or is not fully defined at the outset. In CPFF, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This contrasts with Firm-Fixed-Price (FFP) contracts, which offer the government price certainty but can be risky for contractors if costs escalate unexpectedly. Cost-Plus-Incentive-Fee (CPIF) contracts share costs and profits based on meeting performance targets. For software sustainment, FFP can be effective if requirements are stable and well-defined. However, for evolving software requiring continuous updates and unforeseen troubleshooting, CPFF or CPIF might be preferred to ensure the contractor has the flexibility to address issues while incentivizing cost control through the fixed fee and potential incentives. The risk with CPFF lies in potential cost overruns if the government's oversight and negotiation of allowable costs are not robust.

What are the specific performance metrics or deliverables expected under this contract?

The provided data extract does not specify the exact performance metrics or deliverables for this contract. Typically, for software sustainment and development contracts, deliverables would include updated software versions, bug fixes, technical documentation, maintenance reports, and potentially performance reports demonstrating system availability or responsiveness. Performance metrics might focus on response times for critical issues, uptime of the supported software, successful deployment of updates, and adherence to security protocols. The 'CONTINUED SOFTWARE SUSTAINMENT DEVELOPMENT WORK' description implies ongoing support and incremental improvements. A thorough review of the contract's Statement of Work (SOW) and associated Performance Work Statement (PWS) would be necessary to identify the precise metrics and deliverables.

What is Northrop Grumman's track record with the G/ATOR system or similar radar sustainment contracts?

Northrop Grumman is a major defense contractor with extensive experience in radar systems, including the G/ATOR program. They have been involved in the development and production phases of the G/ATOR system. Their track record with similar complex radar sustainment contracts would likely involve managing large-scale software and hardware support for advanced military platforms. Assessing their specific performance on G/ATOR sustainment would require examining past contract performance evaluations (e.g., CPARS reports), any documented issues or successes, and their history of meeting delivery schedules and technical requirements. Given their position as a prime contractor on this system, it is reasonable to assume they possess the necessary expertise, but a detailed review of their performance history would provide a more definitive assessment.

Are there any known risks associated with the G/ATOR radar system's software that necessitate this sole-source approach?

The data provided does not explicitly state the risks associated with the G/ATOR system's software that led to a sole-source award. However, sole-source procurements are often justified by factors such as unique technical expertise, proprietary software or hardware, the need for rapid response where competition is impractical, or if the original developer is the only entity capable of providing necessary sustainment without significant risk to operational capability. For complex systems like G/ATOR, the software architecture might be highly specialized and integrated, making it difficult or time-consuming for another contractor to gain the necessary understanding and security clearances to perform sustainment effectively. Potential risks could include obsolescence of components, cybersecurity vulnerabilities, or the need for continuous, rapid updates to maintain operational effectiveness against evolving threats, which the incumbent contractor is best positioned to address.

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: $39,409,270

Exercised Options: $39,409,270

Current Obligation: $33,477,743

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,942,904

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