DoD Awards Northrop Grumman $16.26M for G/ATOR Radar Component Development
Contract Overview
Contract Amount: $16,262,936 ($16.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2026-08-15
End Date: 2026-08-28
Contract Duration: 13 days
Daily Burn Rate: $1.3M/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THE CONTINUED DESIGN AND DEVELOPMENT OF THE DIGITAL RECEIVER/EXCITER AT COMPONENT LEVEL SUBSYSTEMS 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 $16.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THE CONTINUED DESIGN AND DEVELOPMENT OF THE DIGITAL RECEIVER/EXCITER AT COMPONENT LEVEL SUBSYSTEMS FOR THE GROUND/AIR TASK ORIENTED RADAR (G/ATOR). Key points: 1. Contract focuses on critical radar component design for the G/ATOR system. 2. Northrop Grumman is the sole awardee, raising questions about competition. 3. Risk associated with sole-source procurement and potential cost overruns. 4. Spending falls within the Defense sector, specifically radar and navigation systems.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs than fixed-price contracts. Without competitive bidding, it's difficult to assess if the $16.26 million price is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. This limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: Sole-source procurement can lead to higher prices compared to competitive contracts, potentially resulting in less value for taxpayer funds.
Public Impact
Enhances critical radar capabilities for the U.S. Navy's G/ATOR system. Supports advanced defense technology development, crucial for national security. Potential for cost overruns due to sole-source and cost-plus contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Cost Plus Fixed Fee contract type
- Lack of competitive bidding
Positive Signals
- Supports critical defense technology
- Development of advanced radar components
Sector Analysis
This contract falls under the Defense sector, specifically focusing on the manufacturing of search, detection, and navigation systems. Spending in this area is often high due to the complexity and strategic importance of military technology.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, as it was a sole-source procurement with a large defense contractor.
Oversight & Accountability
The Department of the Navy awarded this contract. Oversight will be crucial to monitor costs and ensure the effective development of the radar components, especially given the sole-source nature.
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 limits competition.
- Cost Plus Fixed Fee contract may lead to cost overruns.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for schedule delays if development challenges arise.
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 $16.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THE CONTINUED DESIGN AND DEVELOPMENT OF THE DIGITAL RECEIVER/EXCITER AT COMPONENT LEVEL SUBSYSTEMS 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 $16.3 million.
What is the period of performance?
Start: 2026-08-15. End: 2026-08-28.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only a specific contractor can meet. Without further details, it's difficult to ascertain the precise reason, but it implies that Northrop Grumman is deemed the only viable option for this specific phase of the G/ATOR development.
What are the potential cost risks associated with a Cost Plus Fixed Fee contract for sole-source development?
Cost Plus Fixed Fee contracts carry inherent risks of cost overruns because the contractor is reimbursed for allowable costs plus a fixed fee. In a sole-source scenario, the government lacks the leverage of competitive bidding to ensure the initial cost estimates are accurate or that the contractor is incentivized to control expenses rigorously.
How will the effectiveness of the developed components be measured given the lack of competition?
Effectiveness will be measured through rigorous testing and validation against predefined technical specifications and performance requirements outlined in the contract. The government will rely on its own technical expertise and oversight to ensure the components meet the necessary standards for the G/ATOR system, independent of competitive benchmarks.
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: $16,262,936
Exercised Options: $16,262,936
Current Obligation: $16,262,936
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $150,000
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: 2026-08-15
Current End Date: 2026-08-28
Potential End Date: 2026-08-28 00:00:00
Last Modified: 2026-01-07
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