DoD awards $35.1M NRE contract for LAIRCM ECP to Northrop Grumman, citing limited competition
Contract Overview
Contract Amount: $35,148,385 ($35.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2011-02-25
End Date: 2013-07-31
Contract Duration: 887 days
Daily Burn Rate: $39.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE
Sector: Defense
Official Description: NRE FOR DON LAIRCM ATW ECP
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $35.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: NRE FOR DON LAIRCM ATW ECP Key points: 1. Contract awarded to a single, large defense contractor. 2. Cost-plus incentive contract type suggests potential for cost overruns. 3. No small business participation noted. 4. Focus on specialized defense systems (LAIRCM).
Value Assessment
Rating: questionable
The contract type (Cost Plus Incentive) can lead to higher costs than fixed-price contracts if not managed tightly. Benchmarking is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, likely due to specialized nature or existing contractor relationship. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: Lack of competition may result in inflated costs, impacting taxpayer value for this specialized defense system.
Public Impact
Funds allocated for Non-Recurring Engineering (NRE) for a critical defense system. Contract supports the development and enhancement of the Large Aircraft Infrared Countermeasures (LAIRCM) system. Potential for follow-on production contracts, impacting future defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- No small business involvement
Positive Signals
- Supports critical defense capability (LAIRCM)
Sector Analysis
This contract falls within the Defense sector, specifically related to electronic warfare systems. Spending in this area is often characterized by high R&D costs and limited competition due to specialized technology.
Small Business Impact
The contract data indicates no small business participation. This is common for large, complex defense systems where prime contractors often handle the entire scope.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), responsible for oversight. However, the cost-plus nature requires diligent monitoring to ensure cost efficiency.
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
- Lack of competitive bidding
- Cost-plus contract type increases financial risk
- No small business participation
- Long contract duration (887 days)
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 $35.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. NRE FOR DON LAIRCM ATW ECP
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 $35.1 million.
What is the period of performance?
Start: 2011-02-25. End: 2013-07-31.
What is the projected total cost of the LAIRCM ECP program beyond this NRE phase?
The provided data only covers the Non-Recurring Engineering (NRE) phase, totaling $35.1 million. Information regarding the full program lifecycle cost, including subsequent development, testing, and potential production phases, is not available in this dataset. Further analysis would require access to broader program documentation and future budget allocations.
How does the cost of this NRE contract compare to similar development efforts for electronic warfare systems?
Benchmarking this $35.1 million NRE contract against similar electronic warfare system development is challenging without specific cost data for comparable programs. Factors like technological complexity, program duration, and specific system capabilities vary significantly. A comprehensive comparison would necessitate a detailed analysis of industry cost data and program scope for analogous projects.
What are the specific performance metrics tied to the incentive fee in this Cost Plus Incentive contract?
The data specifies a 'Cost Plus Incentive' (CPI) contract type but does not detail the specific performance metrics or targets linked to the incentive fee. Typically, these incentives are tied to achieving cost savings, schedule adherence, or specific technical performance milestones. Understanding the exact triggers for the incentive fee requires reviewing the contract's Statement of Work and associated clauses.
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: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 600 HICKS RD, ROLLING MEADOWS, IL, 90
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: $35,148,385
Exercised Options: $35,148,385
Current Obligation: $35,148,385
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2011-02-25
Current End Date: 2013-07-31
Potential End Date: 2013-07-31 00:00:00
Last Modified: 2014-07-10
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