DoD Awards Northrop Grumman $244M for GQM-163A Target Vehicles, Lacking Competition
Contract Overview
Contract Amount: $244,024,463 ($244.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-11-03
End Date: 2027-10-29
Contract Duration: 2,551 days
Daily Burn Rate: $95.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FRP 14 GQM-163A BASE TARGET VEHICLE
Place of Performance
Location: CHANDLER, MARICOPA County, ARIZONA, 85248
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $244.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: FRP 14 GQM-163A BASE TARGET VEHICLE Key points: 1. Significant contract value of $244M awarded to a single vendor. 2. Lack of competition raises concerns about potential overpricing and limited innovation. 3. The contract is for guided missile and space vehicle manufacturing, a specialized sector. 4. Long contract duration (2020-2027) suggests a sustained need for these vehicles.
Value Assessment
Rating: questionable
The contract value of $244M for 1 unit over 7 years is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar specialized defense contracts.
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 as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The absence of competition on a $244M contract means taxpayers may be paying a premium for these target vehicles.
Public Impact
Taxpayers may be overpaying for essential defense training assets due to lack of competition. The long-term nature of the contract could lock in potentially inflated prices for years. Limited visibility into the justification for a sole-source award for such a significant amount. Potential impact on readiness if training exercises are curtailed due to cost overruns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Long contract duration
- Lack of transparency on justification
Positive Signals
- Fulfills critical defense need
- Long-term program stability
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized area within defense. Spending benchmarks are difficult to establish due to the niche nature and proprietary technologies involved, but large sole-source awards warrant scrutiny.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data, suggesting limited direct small business involvement.
Oversight & Accountability
The sole-source nature of this large contract necessitates robust oversight from the Department of Defense to ensure fair pricing and performance. Accountability is crucial given the significant taxpayer investment and lack of competitive pressure.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to lack of competition.
- Limited transparency regarding the sole-source justification.
- Long contract duration may obscure performance issues.
- No indication of small business participation.
- High dollar value concentrated with one vendor.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, az, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $244.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. FRP 14 GQM-163A BASE TARGET VEHICLE
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 $244.0 million.
What is the period of performance?
Start: 2020-11-03. End: 2027-10-29.
What is the specific justification for awarding this $244M contract on a sole-source basis, and were alternative procurement methods considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without further documentation, it's unclear if alternatives like limited competition or phased approaches were explored. This lack of transparency is a concern for ensuring best value for taxpayer dollars.
How does the per-unit cost of the GQM-163A target vehicle compare to similar systems or previous contract awards, especially considering the lack of competition?
Benchmarking the per-unit cost is challenging without competitive data. The absence of competition means there's no market-driven price comparison. Analysis would require access to historical pricing data for this specific vehicle, or comparable systems if available, to identify potential deviations from expected cost trends.
What measures are in place to ensure the effectiveness and performance of the GQM-163A target vehicles under this long-term, sole-source contract?
Effectiveness is typically ensured through stringent contract terms, performance metrics, and acceptance testing. For sole-source contracts, the government must rely heavily on detailed specifications and quality assurance processes to verify that the delivered vehicles meet all operational requirements and performance standards.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001918R0087
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1575 SOUTH PRICE RD, CHANDLER, AZ, 85286
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $244,024,463
Exercised Options: $244,024,463
Current Obligation: $244,024,463
Subaward Activity
Number of Subawards: 145
Total Subaward Amount: $78,323,921
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-11-03
Current End Date: 2027-10-29
Potential End Date: 2027-10-29 00:00:00
Last Modified: 2026-01-08
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