DoD Awards Northrop Grumman $20.25M for BQM-34S 3D Model, Lacking Competition
Contract Overview
Contract Amount: $20,249,887 ($20.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-27
End Date: 2026-09-28
Contract Duration: 1,097 days
Daily Burn Rate: $18.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BQM-34S 3D MODEL
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Defense obligated $20.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: BQM-34S 3D MODEL Key points: 1. Significant contract value awarded to a single large business. 2. Lack of competition raises concerns about potential overpricing. 3. Contract duration extends over three years, impacting long-term value. 4. Sector is Other Aircraft Parts and Auxiliary Equipment Manufacturing.
Value Assessment
Rating: questionable
The contract value of $20.25M for a 3D model appears high given the lack of competition. Benchmarking against similar, competitively awarded contracts for specialized modeling services is difficult but likely indicates a premium price.
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 was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition suggests taxpayers may be paying more than necessary for this 3D model.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Limited transparency into the pricing justification for this sole-source award. Potential for future sole-source awards if not actively managed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Long contract duration
Positive Signals
- Clear contract end date
- Firm fixed price contract type
Sector Analysis
The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector is diverse. While large contracts exist, competitive bidding is crucial for ensuring value, especially for specialized items like 3D models.
Small Business Impact
This contract was awarded to a large business (Northrop Grumman) and did not include any small business set-asides. There is no indication of small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price is fair and reasonable. Future procurements should explore competitive options.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Lack of price competition
- Potential for inflated pricing
- Limited transparency on justification
- Long contract duration
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 $20.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. BQM-34S 3D MODEL
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 $20.2 million.
What is the period of performance?
Start: 2023-09-27. End: 2026-09-28.
What is the justification for awarding this contract sole-source?
The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a justification, such as a unique capability or urgent need, that is not detailed here. Without this justification, it's difficult to assess the necessity of bypassing competitive processes.
How does the $20.25M price compare to similar 3D modeling contracts?
Direct comparison is challenging without knowing the exact specifications and complexity of the BQM-34S 3D model. However, given the sole-source nature, the price is likely higher than if it had been competitively bid. Benchmarking against other sole-source awards for similar services would be necessary for a more precise assessment.
What is the potential risk to the government if this model is critical?
The primary risk is financial: overpaying due to the lack of competition. Additionally, if the model is critical and the sole-source provider faces issues, the government could face delays or be forced into unfavorable renegotiations. The long duration also ties the government to this specific provider.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: GUIDED MISSLES
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
Address: 2000 W NASA BLVD, MELBOURNE, FL, 32904
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: $20,249,887
Exercised Options: $20,249,887
Current Obligation: $20,249,887
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001920G0005
IDV Type: BOA
Timeline
Start Date: 2023-09-27
Current End Date: 2026-09-28
Potential End Date: 2026-09-28 00:00:00
Last Modified: 2025-03-27
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