DoD Awards Northrop Grumman $146.7M for Digital Topographic Support Systems

Contract Overview

Contract Amount: $14,670,108 ($14.7M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2003-09-30

End Date: 2009-12-29

Contract Duration: 2,282 days

Daily Burn Rate: $6.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200312!000022!1700!AT727 !NAVAL AIR SYSTEMS COMMAND !N0001903C0068 !A!N! !N! !20030930!20051130!005128988!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!600 HICKS RD !ROLLING MEADOW !IL!60008!65338!031!17!ROLLING MEADOWS !COOK !ILLINOIS !+000004431325!N!N!000015447036!6625!ELECTRICAL & ELCT PROPERTIES MEAS & TST INSTRUMNTS!A7 !ELECTRONICS AND COMMUNICATION !1GHB!DGTL TOPOGRAPHIC SPPT SYS DTSS!334511!E! !3! ! ! ! ! !99990909!B!D!Y!A! !D!N!J!1!001!N!1A!A!Y!F! ! !N!C!N! ! ! !A!Z!A!A!000!A!C!Y! ! ! ! ! !N00019!0001! !

Place of Performance

Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $14.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200312!000022!1700!AT727 !NAVAL AIR SYSTEMS COMMAND !N0001903C0068 !A!N! !N! !20030930!20051130!005128988!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!600 HICKS RD !ROLLING MEADOW !IL!60008!65338!031!17!ROLLING MEADOWS !COOK … Key points: 1. Contract awarded to Northrop Grumman for specialized defense systems. 2. Significant value of $146.7 million indicates a critical need. 3. Sole-source award raises questions about competition and potential cost savings. 4. Focus on IT and electronics suggests a technology-intensive sector.

Value Assessment

Rating: fair

The contract value of $146.7 million for a 2282-day duration appears reasonable given the specialized nature of the equipment. However, without specific unit cost data or comparison to similar systems, a precise assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning it was not competed. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for this $146.7 million contract means taxpayers may not have received the best possible price.

Public Impact

Enhances critical defense capabilities for the Navy. Supports advanced navigation and guidance systems. Ensures continued operational readiness for military assets.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

  • Sole-source award limits competition.
  • Potential for higher costs due to lack of bidding.
  • Long contract duration could lead to scope creep.

Positive Signals

  • Addresses a critical defense need.
  • Awarded to an established defense contractor.
  • Supports advanced technological systems.

Sector Analysis

This contract falls within the Defense sector, specifically related to IT and electronics for navigation and guidance systems. Spending in this area is often high due to the complexity and critical nature of the technology.

Small Business Impact

The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The award was managed by the Naval Air Systems Command, part of the Department of Defense. Oversight would typically involve contract performance monitoring and financial audits to ensure compliance and value.

Related Government Programs

  • Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Sole-source award
  • Lack of competition
  • Potential for cost overruns
  • Long contract duration

Tags

search-detection-navigation-guidance-aer, department-of-defense, il, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200312!000022!1700!AT727 !NAVAL AIR SYSTEMS COMMAND !N0001903C0068 !A!N! !N! !20030930!20051130!005128988!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!600 HICKS RD !ROLLING MEADOW !IL!60008!65338!031!17!ROLLING MEADOWS !COOK !ILLINOIS !+000004431325!N!N!000015447036!6625!ELECTRICAL & ELCT PROPERTIES MEAS & TST INSTRUMNTS!A7 !ELECTRONICS AND COMMUNICATION !1GHB!DGTL TOPOGRAPHIC SPPT SYS DTSS!334511!E! !3! ! ! ! ! !99990909!B

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $14.7 million.

What is the period of performance?

Start: 2003-09-30. End: 2009-12-29.

What specific technological advancements does the Digital Topographic Support System provide, and how do they justify the sole-source award?

The Digital Topographic Support System (DTSS) likely provides advanced digital mapping and terrain analysis capabilities crucial for modern military operations, including navigation, mission planning, and targeting. Its sole-source nature suggests a unique technological capability or proprietary system developed by Northrop Grumman, making direct competition infeasible or prohibitively expensive due to the need for specialized knowledge and integration.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

A sole-source contract of $146.7 million over 2282 days carries risks of inflated pricing due to the absence of competitive pressure. There's also a risk of vendor lock-in, reduced innovation incentives for the contractor, and potential for cost overruns if contract management and oversight are not rigorous. Ensuring clear performance metrics and change control is vital.

How does this contract contribute to the overall effectiveness and modernization of naval air systems?

This contract directly enhances the effectiveness of naval air systems by providing critical digital topographic data and support. This likely improves situational awareness, navigation accuracy, and mission planning for pilots and command centers, contributing to the overall modernization of the fleet's technological capabilities and operational readiness in complex environments.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 600 HICKS RD, ROLLING MEADOW, IL

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline

Start Date: 2003-09-30

Current End Date: 2009-12-29

Potential End Date: 2009-12-29 00:00:00

Last Modified: 2011-03-23

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