DoD Awards Northrop Grumman $51.9M for LINK 16 Kits, Spares, with No Competition
Contract Overview
Contract Amount: $51,870,520 ($51.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-03-31
End Date: 2027-10-29
Contract Duration: 942 days
Daily Burn Rate: $55.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LINK 16 UH-1Y/AH-1Z A KITS, B KITS, FTDS AND SPARES
Place of Performance
Location: WOODLAND HILLS, LOS ANGELES County, CALIFORNIA, 91367
Plain-Language Summary
Department of Defense obligated $51.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LINK 16 UH-1Y/AH-1Z A KITS, B KITS, FTDS AND SPARES Key points: 1. Significant award to a single large defense contractor. 2. Focus on critical communication systems (LINK 16). 3. Lack of competition raises concerns about price discovery. 4. Long-term contract duration (942 days) suggests ongoing need.
Value Assessment
Rating: questionable
The award amount of $51.9M for LINK 16 kits and spares appears substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar procurements or alternative solutions.
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 as there is no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for this significant award may result in taxpayers paying a premium for essential defense equipment.
Public Impact
Ensures continued operational capability for critical communication systems. Supports ongoing maintenance and upgrade of military aircraft. Potential for increased costs due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of price competition
- Long contract duration
Positive Signals
- Supports critical defense systems
- Ensures equipment availability
Sector Analysis
This contract falls within the defense sector, specifically related to electronic and communication equipment. Spending in this area is often characterized by high R&D costs and specialized manufacturing, but competition is typically sought to control prices.
Small Business Impact
The awardee, Northrop Grumman Systems Corporation, is a large defense contractor. There is no indication in the provided data that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The lack of competition warrants close scrutiny to ensure the government receives the best possible value.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for overpricing due to sole-source award.
- Lack of transparency in price justification.
- Limited opportunity for technological innovation from competitors.
- Dependency on a single supplier for critical components.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LINK 16 UH-1Y/AH-1Z A KITS, B KITS, FTDS AND SPARES
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $51.9 million.
What is the period of performance?
Start: 2025-03-31. End: 2027-10-29.
What is the justification for the sole-source award, and were alternative procurement strategies considered?
The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. Without further details, it's unclear why this contract wasn't competed. A thorough review should confirm if other vendors could have met the requirements and if competitive processes were explored.
How does the per-unit cost of these LINK 16 kits and spares compare to historical data or industry benchmarks?
Benchmarking the per-unit cost is crucial for assessing value, especially in sole-source contracts. A detailed cost analysis comparing these prices to previous awards for similar components, or to prices offered by other suppliers for comparable technology, would reveal potential overpricing and inform future negotiations.
What is the long-term strategy for acquiring LINK 16 components, and will future procurements be competed?
Understanding the long-term acquisition strategy is vital for taxpayer impact. If this sole-source award is part of a pattern, it suggests a need for strategic sourcing to introduce competition or negotiate better terms. Future competitive solicitations should be planned to ensure cost-effectiveness and access to innovation.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001922R0038
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 21240 BURBANK BLVD, WOODLAND HILLS, CA, 91367
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: $51,870,520
Exercised Options: $51,870,520
Current Obligation: $51,870,520
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0001924D0123
IDV Type: IDC
Timeline
Start Date: 2025-03-31
Current End Date: 2027-10-29
Potential End Date: 2027-10-29 00:00:00
Last Modified: 2025-11-03
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