DoD Awards Northrop Grumman $83.5M for LAIRCM ATW Sensors and Processors
Contract Overview
Contract Amount: $83,460,793 ($83.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2012-03-28
End Date: 2018-08-31
Contract Duration: 2,347 days
Daily Burn Rate: $35.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DON LAIRCM ATW SENSORS - QTY 110 DON LAIRCM ATW UPGRADED PROCESSORS - QTY 200
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $83.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DON LAIRCM ATW SENSORS - QTY 110 DON LAIRCM ATW UPGRADED PROCESSORS - QTY 200 Key points: 1. Significant award to a major defense contractor for critical aircraft protection systems. 2. The contract covers both new sensors and upgrades to existing processors. 3. Sole-source award raises questions about price discovery and competition. 4. Spending aligns with the broader defense sector's focus on advanced avionics.
Value Assessment
Rating: questionable
The total award of $83.5M for 110 sensors and 200 processors results in a high per-unit cost. Without specific cost breakdowns or benchmarks for similar systems, it's difficult to definitively assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this significant award may result in suboptimal pricing, impacting taxpayer value.
Public Impact
Enhances survivability of naval aircraft through advanced threat detection. Supports the modernization of critical defense systems. Investment in specialized electronic warfare capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- High per-unit cost without clear justification.
- Long contract duration (2012-2018) may not reflect current market prices.
Positive Signals
- Procures critical defense technology.
- Supports a key defense contractor.
- Addresses aircraft survivability needs.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on advanced electronic warfare and avionics systems. Spending in this area is driven by the need for technological superiority and force protection.
Small Business Impact
This contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of small business participation in the provided data.
Oversight & Accountability
As a sole-source award, oversight is crucial to ensure fair pricing and effective delivery. The long duration of the contract warrants review of performance and cost adjustments.
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
- Lack of competition
- Potential for inflated pricing
- Limited transparency on cost justification
- Long contract duration
- No small business participation noted
Tags
search-detection-navigation-guidance-aer, department-of-defense, il, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $83.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. DON LAIRCM ATW SENSORS - QTY 110 DON LAIRCM ATW UPGRADED PROCESSORS - QTY 200
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 $83.5 million.
What is the period of performance?
Start: 2012-03-28. End: 2018-08-31.
What is the specific threat detection capability provided by these LAIRCM ATW sensors and processors, and how does it compare to commercially available alternatives?
The LAIRCM (Large Aircraft Infrared Countermeasures) ATW (Advanced Threat Warning) system is designed to detect, identify, and counter infrared-guided missile threats. While specific technical details are often classified, these systems are typically highly specialized and integrated into military platforms, making direct commercial comparisons difficult. Their value lies in providing a tailored defense solution crucial for aircraft survivability in hostile environments.
Given the sole-source nature of this award, what mechanisms were in place to ensure a fair and reasonable price was negotiated?
For sole-source contracts, agencies typically rely on contractor cost and pricing data, along with government cost analysis, to determine price reasonableness. This can involve detailed audits and negotiations. However, without competition, the government lacks the leverage of alternative bids, making robust negotiation and oversight essential to mitigate potential overpricing and ensure taxpayer value.
How has the performance of these upgraded processors and new sensors impacted the operational effectiveness and survivability of the naval aircraft they are installed on?
The effectiveness of the LAIRCM ATW system is directly tied to its ability to accurately detect and counter missile threats, thereby enhancing aircraft survivability. Positive operational reports or documented instances of successful threat mitigation would indicate high effectiveness. Conversely, any system failures or limitations in threat detection would reduce operational effectiveness and potentially increase risk to aircrews.
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: 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: Northrop Grumman Corporation (UEI: 967356127)
Address: 600 HICKS RD, ROLLING MEADOWS, IL, 60008
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: $83,460,793
Exercised Options: $83,460,793
Current Obligation: $83,460,793
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-03-28
Current End Date: 2018-08-31
Potential End Date: 2018-08-31 00:00:00
Last Modified: 2019-01-10
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