DoD Awards Northrop Grumman $711M for MQ-4C Triton Unmanned Aircraft Long Lead
Contract Overview
Contract Amount: $711,229,373 ($711.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2015-02-26
End Date: 2024-12-31
Contract Duration: 3,596 days
Daily Burn Rate: $197.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: IGF::OT::IGF THE PURPOSE OF THIS PROCUREMENT IS FOR MQ-4C TRITON LRIP 1 UNMANNED AIRCRAFT LONG LEAD
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Defense obligated $711.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF THE PURPOSE OF THIS PROCUREMENT IS FOR MQ-4C TRITON LRIP 1 UNMANNED AIRCRAFT LONG LEAD Key points: 1. Significant investment in advanced unmanned aerial vehicle technology. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Long contract duration (2015-2024) suggests complex development and production. 4. Focus on LRIP (Low Rate Initial Production) indicates a critical phase for the program.
Value Assessment
Rating: questionable
The contract value of $711M for LRIP 1 is substantial. Without comparable fixed-price incentive contracts for similar advanced unmanned aircraft systems, a precise pricing assessment is difficult. The incentive structure aims to control costs, but the lack of competition makes benchmarking challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive procurement process. The rationale for sole-sourcing should be clearly documented.
Taxpayer Impact: The lack of competition for this large contract may result in taxpayers paying a premium for the MQ-4C Triton aircraft.
Public Impact
Enhances intelligence, surveillance, and reconnaissance (ISR) capabilities for the Navy. Supports strategic military objectives with advanced drone technology. Potential for job creation within the aerospace and defense sector. Long-term program commitment impacts future defense budgets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Advanced technology development
- Strategic ISR capability
Sector Analysis
The aerospace and defense sector is characterized by high R&D costs and long production cycles. Spending benchmarks for large unmanned aircraft systems are often driven by specific program requirements and limited supplier bases, making direct comparisons difficult.
Small Business Impact
This contract was awarded directly to Northrop Grumman Systems Corporation and does not indicate any subcontracting or set-asides for small businesses in the provided data. Further analysis would be needed to determine potential small business participation.
Oversight & Accountability
The long duration and sole-source nature of this contract warrant close oversight from the Department of Defense and relevant oversight bodies to ensure cost-effectiveness and program performance. Regular reviews of progress and expenditures are crucial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- High contract value requires rigorous cost oversight.
- Long contract duration increases risk of cost overruns.
- Dependence on a single contractor for critical defense technology.
- Potential for scope creep or changes in requirements over time.
Tags
aircraft-manufacturing, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $711.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF THE PURPOSE OF THIS PROCUREMENT IS FOR MQ-4C TRITON LRIP 1 UNMANNED AIRCRAFT LONG LEAD
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 $711.2 million.
What is the period of performance?
Start: 2015-02-26. End: 2024-12-31.
What is the justification for the sole-source award of this significant contract, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. For this contract, the Department of Defense should have a documented rationale. To ensure fair pricing, the government often employs cost analysis, should-cost modeling, and negotiation strategies, even in sole-source situations. Independent cost estimates and audits can also play a role in validating the proposed price.
What are the key performance metrics and milestones for the MQ-4C Triton LRIP 1, and how is their achievement being monitored?
Key performance metrics for the MQ-4C Triton LRIP 1 likely include flight hours, sensor data quality, operational range, and system reliability. Milestones would encompass successful completion of production phases, testing, and delivery schedules. The Department of the Navy's program office, along with contracting officers, would be responsible for monitoring these through regular program reviews, technical assessments, and performance reports submitted by Northrop Grumman.
What is the projected long-term sustainment cost and operational readiness impact of the MQ-4C Triton program?
The long-term sustainment cost and operational readiness impact are critical considerations for any major defense acquisition. This includes costs for maintenance, spare parts, training, and upgrades over the system's lifecycle. The MQ-4C Triton program's effectiveness will depend on balancing initial acquisition costs with affordable sustainment to ensure high operational availability and mission success throughout its service life.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft 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: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 17066 GOLDENTOP RD, SAN DIEGO, CA, 92127
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $711,229,373
Exercised Options: $711,229,373
Current Obligation: $711,229,373
Actual Outlays: $5,875,178
Subaward Activity
Number of Subawards: 593
Total Subaward Amount: $341,775,389
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-02-26
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-05-07
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