Navy Awards $179.4M Contract for Radar Equipment to Northrop Grumman Systems Corporation
Contract Overview
Contract Amount: $17,940,000 ($17.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2005-09-01
End Date: 2008-02-29
Contract Duration: 911 days
Daily Burn Rate: $19.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200512!394078!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0074 !A!N! !N! ! !20050901!20070930!039134218!001922749!016435559!N!LITTON SYSTEMS, INC !21240 BURBANK BLVD !WOODLAND HILLS !CA!91367!86356!037!06!WOODLAND HILLS !LOS ANGELES !CALIFORNIA!+000011250000!N!N!000011250000!5840!RADAR EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !M09 !JCALS !488190!A!A!3! ! ! ! ! !20200930!B! ! !A! !D!U!J!1!001!N!1A!Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! !1700!N00019!0001! !
Place of Performance
Location: WOODLAND HILLS, LOS ANGELES County, CALIFORNIA, 91367
Plain-Language Summary
Department of Defense obligated $17.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200512!394078!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0074 !A!N! !N! ! !20050901!20070930!039134218!001922749!016435559!N!LITTON SYSTEMS, INC !21240 BURBANK BLVD !WOODLAND HILLS !CA!91367!86356!037!06!WOODLAND HILLS !LOS … Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for radar equipment. 2. The contract value is $179.4 million. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Electronics and Communication Equipment, with a specific PSC code of 5840.
Value Assessment
Rating: questionable
The contract value of $179.4 million for radar equipment needs further benchmarking against similar contracts. Without competitive bidding, it's difficult to assess if this price represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This method can lead to higher prices due to a lack of market pressure and potentially less robust price discovery.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the radar equipment, as there was no mechanism to ensure the lowest possible price.
Public Impact
Taxpayers may be overpaying for essential radar equipment due to the absence of competitive bidding. The Department of the Navy is acquiring critical radar systems, impacting national defense capabilities. The sole-source nature of this award warrants scrutiny to ensure responsible use of public funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Award to established contractor
- Specific equipment for naval operations
Sector Analysis
This contract falls within the Electronics and Communication Equipment sector, specifically for radar equipment. Spending in this area is critical for defense operations, but competitive procurement is essential to manage costs effectively.
Small Business Impact
There is no indication in the provided data whether small businesses were involved as subcontractors or partners in this contract award. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The non-competitive nature of this award suggests a need for robust oversight to ensure the justification for sole-source procurement is sound and that the price is fair and reasonable.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in price discovery
Tags
other-support-activities-for-air-transpo, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200512!394078!1700!N00019!NAVAL AIR SYSTEMS COMMAND !N0001905C0074 !A!N! !N! ! !20050901!20070930!039134218!001922749!016435559!N!LITTON SYSTEMS, INC !21240 BURBANK BLVD !WOODLAND HILLS !CA!91367!86356!037!06!WOODLAND HILLS !LOS ANGELES !CALIFORNIA!+000011250000!N!N!000011250000!5840!RADAR EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !M09 !JCALS !488190!A!A!3! ! ! ! ! !202
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 $17.9 million.
What is the period of performance?
Start: 2005-09-01. End: 2008-02-29.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves factors such as unique capabilities of the contractor, urgent need, or lack of adequate competition. Without specific documentation, it's impossible to confirm the exact reason, but it's a critical point for oversight to ensure taxpayer funds are used appropriately and that competition was genuinely not feasible.
How does the $179.4 million price compare to similar radar equipment procured competitively?
Benchmarking this $179.4 million contract against similar radar equipment procured through competitive means is crucial for assessing value. A lack of competitive bidding makes it difficult to determine if this price is fair and reasonable, potentially indicating an inflated cost for the government and taxpayers.
What is the long-term strategic impact of procuring this radar equipment via a sole-source contract?
Sole-source procurement can limit technological advancement and potentially create vendor lock-in, impacting long-term strategic flexibility. While ensuring immediate needs are met, it may hinder the government's ability to leverage innovation from a broader market and could lead to higher sustainment costs over the equipment's lifecycle.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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: Titan II Inc. (UEI: 016435559)
Address: 21240 BURBANK BLVD, WOODLAND HILLS, CA, 32
Business Categories: Category Business, Not Designated a Small Business
Timeline
Start Date: 2005-09-01
Current End Date: 2008-02-29
Potential End Date: 2008-02-29 00:00:00
Last Modified: 2010-03-13
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