Navy Awards Northrop Grumman $11.7M for AN/ZPY-8 Radar Modification Kits
Contract Overview
Contract Amount: $11,707,396 ($11.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2019-11-27
End Date: 2021-10-29
Contract Duration: 702 days
Daily Burn Rate: $16.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PRODUCE EIGHT (8) AN/ZPY-8 RADAR MODIFICATION KITS AND EIGHT (8) FORWARD ACCESS PANEL MODIFICATION KITS WITH ALL ASSOCIATED NON-RECURRING ENGINEERING TO QUALIFY A NEW MISSION PROCESSOR UNIT (MPU) FOR DELIVERY WITH THE MODIFICATION KITS.
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Defense obligated $11.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: PRODUCE EIGHT (8) AN/ZPY-8 RADAR MODIFICATION KITS AND EIGHT (8) FORWARD ACCESS PANEL MODIFICATION KITS WITH ALL ASSOCIATED NON-RECURRING ENGINEERING TO QUALIFY A NEW MISSION PROCESSOR UNIT (MPU) FOR DELIVERY WITH THE MODIFICATION KITS. Key points: 1. Significant investment in radar system upgrades for enhanced mission capabilities. 2. Sole-source award to Northrop Grumman, raising questions about competition and potential cost savings. 3. Focus on qualifying a new mission processor unit suggests a technological advancement. 4. The contract spans over 700 days, indicating a complex integration and testing process.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type for $11.7 million introduces uncertainty in final pricing. Benchmarking against similar complex modification kits is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, indicating a lack of competitive bidding. This method may limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award warrants scrutiny to ensure taxpayer funds are used efficiently and that the government explored all viable competitive options.
Public Impact
Enhances naval aviation capabilities with advanced radar technology. Supports critical defense infrastructure and modernization efforts. Potential for improved threat detection and situational awareness for naval forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can lead to cost overruns.
- Lack of detailed cost data for benchmarking.
Positive Signals
- Upgrades critical defense technology.
- Supports a key defense contractor.
- Addresses specific mission processor unit qualification.
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is driven by defense modernization and sustainment needs, with significant government contracts awarded to large aerospace firms.
Small Business Impact
The awardee, Northrop Grumman Systems Corporation, is a large business. There is no indication of small business participation in this specific contract, which is common for sole-source, high-value defense procurements.
Oversight & Accountability
The sole-source justification and the cost-plus contract type necessitate robust oversight from the Department of the Navy to ensure cost control and adherence to contract terms.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award.
- Cost-plus contract type.
- Lack of transparency in cost breakdown.
- Potential for cost overruns.
- Limited visibility into competition alternatives.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. PRODUCE EIGHT (8) AN/ZPY-8 RADAR MODIFICATION KITS AND EIGHT (8) FORWARD ACCESS PANEL MODIFICATION KITS WITH ALL ASSOCIATED NON-RECURRING ENGINEERING TO QUALIFY A NEW MISSION PROCESSOR UNIT (MPU) FOR DELIVERY WITH THE MODIFICATION KITS.
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 $11.7 million.
What is the period of performance?
Start: 2019-11-27. End: 2021-10-29.
What was the justification for awarding this contract sole-source to Northrop Grumman, and were alternative solutions considered?
The justification for a sole-source award typically involves factors like unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's difficult to ascertain the exact reasoning. However, the government should have explored if any other qualified sources could meet the technical requirements for the AN/ZPY-8 radar modification kits and the new mission processor unit.
How does the cost-plus fixed fee structure impact the government's ability to control costs for these complex modification kits?
A Cost Plus Fixed Fee (CPFF) contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can fluctuate based on actual expenses. This structure can incentivize contractors to manage costs efficiently to maximize their profit margin (the fee). However, it requires diligent government oversight to ensure costs are reasonable and allocable.
What is the expected impact of these radar modification kits on the operational effectiveness of the naval platforms they will be integrated into?
These modification kits, particularly the integration of a new Mission Processor Unit (MPU), are expected to significantly enhance the AN/ZPY-8 radar's capabilities. This likely translates to improved target detection, tracking, and classification, leading to better situational awareness and potentially increased mission effectiveness for the naval platforms. The qualification process aims to ensure these improvements are realized reliably.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001914R0023
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2000 W NASA BLVD, MELBOURNE, FL, 32904
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,619,219
Exercised Options: $12,619,219
Current Obligation: $11,707,396
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $27,546,333
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001915G0026
IDV Type: BOA
Timeline
Start Date: 2019-11-27
Current End Date: 2021-10-29
Potential End Date: 2021-10-29 00:00:00
Last Modified: 2025-09-17
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