DoD's $314M TRITON contract with Northrop Grumman faces scrutiny for lack of competition
Contract Overview
Contract Amount: $314,512,853 ($314.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-03-10
End Date: 2025-03-27
Contract Duration: 1,478 days
Daily Burn Rate: $212.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TRITON SUSTAINING AND ENGINEERING
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Defense obligated $314.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TRITON SUSTAINING AND ENGINEERING Key points: 1. Significant contract value of $314.5M for sustaining and engineering services. 2. Sole-source award to Northrop Grumman raises questions about competitive pricing. 3. Potential risk associated with limited competition impacting taxpayer value. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a lack of competition, makes it difficult to benchmark against similar services. The total award value of $314.5M over its duration warrants closer examination of cost drivers.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and may lead to higher costs for the government compared to a competitive procurement.
Taxpayer Impact: The absence of competition for a contract of this magnitude raises concerns about whether taxpayers are receiving the best possible value for their investment.
Public Impact
Taxpayers may be overpaying due to the lack of competitive bidding. Limited transparency into the cost justification for this sole-source award. Potential for reduced innovation and service quality without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee pricing
- Lack of transparency in pricing
Positive Signals
- Long-term contract duration provides stability
- Established contractor relationship
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category. Benchmarking is challenging without more specific service details, but large sole-source awards in this area often attract scrutiny regarding cost-effectiveness.
Small Business Impact
The contract data indicates that small businesses were not involved in this award, as it was a sole-source procurement with a large prime contractor. There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight to ensure costs are reasonable and performance meets requirements. The Department of the Navy's oversight mechanisms will be critical in mitigating risks associated with limited competition.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Potential for reduced innovation due to sole-source status.
- Limited transparency regarding cost justification.
- Cost-plus-fixed-fee structure requires strong oversight to control spending.
Tags
all-other-professional-scientific-and-te, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $314.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TRITON SUSTAINING AND ENGINEERING
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 $314.5 million.
What is the period of performance?
Start: 2021-03-10. End: 2025-03-27.
What specific technical or programmatic reasons justified the sole-source award, and were alternatives thoroughly explored?
The justification for a sole-source award typically involves unique capabilities, critical national security needs, or the absence of adequate competition. A thorough review would examine documentation supporting these claims, including market research and any attempts to solicit bids from other qualified contractors. Without this information, it's difficult to ascertain if the government truly exhausted all options for competitive procurement.
How is the cost-plus-fixed-fee structure being managed to ensure cost control and prevent contractor overruns?
Cost-plus-fixed-fee contracts require diligent government oversight to manage costs effectively. This includes detailed audits of contractor expenses, rigorous review of progress reports, and clear communication regarding performance expectations. The government must ensure that the fixed fee remains appropriate given the contract's scope and that any cost overruns are properly justified and managed according to contract terms.
What performance metrics are in place to measure the effectiveness and value delivered by Northrop Grumman under this contract?
Effective performance measurement requires clearly defined metrics tied to contract objectives, such as system uptime, response times, technical issue resolution rates, and adherence to engineering standards. Regular performance reviews and feedback mechanisms are essential to track progress, identify areas for improvement, and ensure the contractor is delivering the expected value and meeting the Department of the Navy's requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001920R0060
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $340,542,452
Exercised Options: $340,542,452
Current Obligation: $314,512,853
Subaward Activity
Number of Subawards: 85
Total Subaward Amount: $70,856,614
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-03-10
Current End Date: 2025-03-27
Potential End Date: 2025-03-27 00:00:00
Last Modified: 2025-07-03
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