Navy Awards $158M Contract for Drones to Northrop Grumman Systems Corp
Contract Overview
Contract Amount: $158,043,512 ($158.0M)
Contractor: Teledyne, Inc
Awarding Agency: Department of Defense
Start Date: 2005-03-29
End Date: 2012-09-22
Contract Duration: 2,734 days
Daily Burn Rate: $57.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200506!171053!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0040 !A!N! !N! ! !20050329!20061229!008391203!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!17066 GOLDENTOP ROAD !SAN DIEGO !CA!92127!59416!073!06!RANCHO BERNARDO !SAN DIEGO !CALIFORNIA!+000024329279!N!N!000048150000!1550!DRONES !A2 !MISSILE AND SPACE SYSTEMS !000 !* !336414!E! !3! ! ! ! ! !20200930!B! ! !A! !D!U!J!1!001!N!1A!A!N!A! ! !N!C!N! ! ! !A!A!A!A!000!A!B!Y! ! ! !Y!1719!N00019!0001! !
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Defense obligated $158.0 million to TELEDYNE, INC for work described as: 200506!171053!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0040 !A!N! !N! ! !20050329!20061229!008391203!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!17066 GOLDENTOP ROAD !SAN DIEGO !CA!92127!59416!073!06!RANCHO BERNARDO !SAN … Key points: 1. The contract value of $158M is significant, indicating a substantial investment in drone technology. 2. Competition was limited, with Teledyne, Inc. noted as a potential competitor. 3. The risk appears moderate, given the fixed-price contract type and the established nature of the sector. 4. This spending falls within the IT and Defense sectors, specifically missile and space systems.
Value Assessment
Rating: good
The contract value of $158,043,512.24 for drones appears reasonable for a large-scale defense procurement. Benchmarking against similar complex drone systems would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, suggesting a limited competition environment. This could impact price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: Limited competition may result in a higher cost to taxpayers compared to a fully competed contract.
Public Impact
Enhances naval capabilities with advanced drone technology. Supports the defense industrial base and associated jobs. Potential for technological advancements in unmanned aerial systems. Impacts the strategic readiness of the U.S. Navy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of full and open competition
- Potential for cost overruns due to limited competition
Positive Signals
- Award to a major defense contractor
- Supports critical defense modernization efforts
Sector Analysis
This contract falls under the Defense sector, specifically within the manufacturing of guided missiles and space vehicles. Spending benchmarks for similar advanced drone systems are typically in the tens to hundreds of millions of dollars.
Small Business Impact
The prime contractor is Northrop Grumman Systems Corporation, a large defense firm. There is no explicit information on small business subcontracting in the provided data.
Oversight & Accountability
The Department of the Navy awarded this contract. Oversight would typically involve program management reviews and contract performance monitoring to ensure delivery and quality.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition
- Potential for cost inefficiencies
- Contract duration of over 7 years
- Specific drone capabilities not detailed
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, ca, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $158.0 million to TELEDYNE, INC. 200506!171053!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0040 !A!N! !N! ! !20050329!20061229!008391203!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!17066 GOLDENTOP ROAD !SAN DIEGO !CA!92127!59416!073!06!RANCHO BERNARDO !SAN DIEGO !CALIFORNIA!+000024329279!N!N!000048150000!1550!DRONES !A2 !MISSILE AND SPACE SYSTEMS !000 !* !336414!E! !3! ! ! ! ! !202
Who is the contractor on this award?
The obligated recipient is TELEDYNE, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $158.0 million.
What is the period of performance?
Start: 2005-03-29. End: 2012-09-22.
What specific drone capabilities does this contract aim to acquire, and how do they align with current naval strategic objectives?
This contract is for drones within the 'Missile and Space Systems' category, suggesting advanced unmanned aerial vehicles. These likely support intelligence, surveillance, reconnaissance (ISR), strike, or electronic warfare missions, aligning with the Navy's need for enhanced situational awareness and force projection in contested environments.
What are the primary risks associated with awarding this contract on a limited competition basis, and how are they being mitigated?
The primary risk is paying a premium due to the lack of competitive bidding. Mitigation strategies might include robust negotiation by the contracting officer, clear performance metrics, and potentially incorporating incentives for cost savings or performance improvements, though these are not detailed in the provided data.
How will the effectiveness of these drones be measured, and what are the key performance indicators (KPIs) for this contract?
Effectiveness is typically measured against mission requirements outlined in the contract's Statement of Work (SOW). Key Performance Indicators (KPIs) would likely include operational range, payload capacity, endurance, reliability (Mean Time Between Failures), and successful mission completion rates, assessed through operational testing and deployment feedback.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: ATI Inc. (UEI: 949262737)
Address: 17066 GOLDENTOP ROAD, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-03-29
Current End Date: 2012-09-22
Potential End Date: 2012-09-22 00:00:00
Last Modified: 2012-06-05
More Contracts from Teledyne, Inc
- 200106!000169!5700!GU72 !asc/Rwkr !F3365701C4600 !A!N!*!N! !20010316!20030228!008391203!008255408!016435559!n!northrop Grumman Corporation !17066 Goldentop Road !SAN Diego !ca!92127!59416!073!06!rancho Bernardo !SAN Diego !california!+000005500000!n!n!000000000000!1510!aircraft Fixed Wing !a1a!airframes and Spares !3000!NOT Discernable or Classified !336411!*!*!1! ! ! !*!*!*!B!*!*!A! !D !u!r!1!001!n!1g!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! !Y! ! !0001! — $2.2B (Department of Defense)
- 200011!1700!000968!AT722 !naval AIR Systems Command !N0001900C0277 !A!*!* !20000209!20030930!008391203!008255408!008255408!n!78023!teledyne, Inc !2049 Century Park E !LOS Angeles !ca!90067!66000!073!06!san Diego !SAN Diego !california!0001!+000023500000!n!n!000000000000!ac17!rdte/Aircraft-Operational System Development !a1a!airframes and Spares !2000!NOT Discernable or Classified !3721!3!*!*!*!B!A!*!A !N!V!2!003!B!* !Z!N!Z!* !* !n!c!*!a!a!a!a!a!a!* !*!n!a!c!n!*!*!*!*!*! — $474.7M (Department of Defense)
- Federal Contract — $187.8M (Department of Defense)
- 200308!000438!5700!GU72 !asc/Rwkr !F3365702C5424 !A!N! !N! !20030408!20031231!008391203!008255408!016435559!n!northrop Grumman Systems Corpo!17066 Goldentop Road !SAN Diego !ca!92127!66000!073!06!san Diego !SAN Diego !california!+000003114500!n!n!000006920000!9999!miscellaneous Items !a1a!airframes and Spares !3000!NOT Discernable or Classified !111110!E! !1! ! ! ! ! !99990909!B! ! !A! !d!n!r!1!001!n!1a!z!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! ! !0001! ! — $96.1M (Department of Defense)
- 200108!000727!1700!AT719 !naval AIR Systems Command !N0001901C0041 !A!N!*!N! !20010405!20040404!008391203!008255408!016435559!n!northrop Grumman Corporation !17066 Goldentop Road !SAN Diego !ca!92127!02238!037!06!antelope Center !LOS Angeles !california!+000023594712!n!n!000000000000!1550!drones !A2 !missile and Space Systems !2cpk!bqm-74e Ssat !336414!*!*!3! ! ! !*!*!*!B!*!*!A! !D !n!j!1!001!n!1b!a!w!a! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! ! !0001! — $86.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)