Naval Sea Systems Command awarded $35.8M contract for radar equipment to XONTECH, INC

Contract Overview

Contract Amount: $35,804,695 ($35.8M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2002-09-24

End Date: 2013-07-31

Contract Duration: 3,963 days

Daily Burn Rate: $9.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200212!026151!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002402C6159 !A!N! !N! !20020924!20070924!039976691!039976691!039976691!N!XONTECH, INC !6862 HAYVENHURST AVENUE !VAN NUYS !CA!91406!35600!007!15!KEKAHA !KAUAI !HAWAII !+000003499570!N!N!000045200341!5840!RADAR EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION !2CAA!BALLISTIC MISSILE DEFENSE SYS !334511!E! !3! ! ! ! ! !99990909!B! ! !A! !C!U!R!1!001!N!1B!A!Y!Z! ! !N!B!N!N! ! !B! !A!A!000!A!B!Y!E! ! !Y! ! !0001!

Place of Performance

Location: WOODLAND HILLS, LOS ANGELES County, CALIFORNIA, 91367

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $35.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200212!026151!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002402C6159 !A!N! !N! !20020924!20070924!039976691!039976691!039976691!N!XONTECH, INC !6862 HAYVENHURST AVENUE !VAN NUYS !CA!91406!35600!007!15!KEKAHA !KAUAI… Key points: 1. Contract awarded for radar equipment, with a focus on ballistic missile defense systems. 2. The contract was a definitive contract type, indicating a long-term agreement. 3. The contractor, XONTECH, INC., is located in Van Nuys, California. 4. The contract duration was over 10 years, suggesting a significant project lifecycle. 5. The primary NAICS code indicates a focus on manufacturing search, detection, and navigation instruments.

Value Assessment

Rating: fair

The contract value of $35.8 million for radar equipment over a decade suggests a substantial investment. Without specific performance metrics or comparisons to similar systems procured under different contract types, it is difficult to definitively assess value for money. The cost-plus award fee structure implies that contractor performance influenced the final price, but the extent of this influence is not detailed. Benchmarking against current market rates for similar advanced radar systems would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source procurement, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or is the only source capable of meeting the requirement. The lack of competition means that price discovery through market forces was limited, potentially leading to higher costs for the government compared to a competitive process.

Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium as the government does not benefit from the cost savings typically achieved through competitive bidding.

Public Impact

The primary beneficiary is the U.S. Navy, specifically programs related to ballistic missile defense systems. The contract delivers essential radar equipment crucial for national defense and early warning capabilities. The geographic impact is primarily within the defense sector, supporting naval operations. Workforce implications may include specialized engineering, manufacturing, and technical support roles within XONTECH, INC. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to suboptimal pricing.
Long contract duration without clear performance incentives could lead to complacency.
Sole-source awards can limit innovation by excluding potential new entrants.

Positive Signals

Award to a single, potentially specialized, vendor can ensure specific technical requirements are met.
Long-term contract may provide stability for critical defense systems.
Cost-plus award fee structure, if well-managed, can incentivize performance.

Sector Analysis

The contract falls within the Defense sector, specifically related to advanced electronics and communication systems. The NAICS code 334511 covers Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. This is a highly specialized area within the broader defense industrial base, often characterized by high barriers to entry due to technological complexity and stringent quality requirements. Spending in this area is critical for maintaining technological superiority in defense capabilities.

Small Business Impact

There is no indication that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. As a sole-source award to a specific entity, the focus was likely on meeting specialized technical requirements rather than broad economic impact through small business participation.

Oversight & Accountability

Oversight for this contract would have been managed by the Defense Contract Management Agency (DCMA). As a cost-plus award fee contract, detailed financial and performance reporting would be expected. Transparency is generally maintained through contract databases, but specific details on performance reviews and award fee determinations are typically not publicly disclosed.

Related Government Programs

Ballistic Missile Defense Systems
Naval Radar Systems
Defense Electronics Procurement
Advanced Sensor Technology

Risk Flags

Sole-source award limits competition.
Cost-plus contract types can carry higher cost risk if not managed tightly.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200212!026151!1700!BZ006 !NAVAL SEA SYSTEMS COMMAND !N0002402C6159 !A!N! !N! !20020924!20070924!039976691!039976691!039976691!N!XONTECH, INC !6862 HAYVENHURST AVENUE !VAN NUYS !CA!91406!35600!007!15!KEKAHA !KAUAI !HAWAII !+000003499570!N!N!000045200341!5840!RADAR EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION !2CAA!BALLISTIC MISSILE DEFENSE SYS !334511!E! !3! ! ! ! ! !99990909!B

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 $35.8 million.

What is the period of performance?

Start: 2002-09-24. End: 2013-07-31.

What was the specific radar technology or system procured under this contract?

The data indicates the contract was for 'RADAR EQUIPMENT, EXCEPT AIRBORNE' under NAICS code 334511, and it supported the 'BALLISTIC MISSILE DEFENSE SYS'. While the exact model or technical specifications are not provided in the summary data, it can be inferred that the radar system was designed for long-range detection, tracking, and potentially engagement of ballistic missiles. This likely involved sophisticated signal processing, advanced antenna technology, and integration with broader missile defense command and control networks. The 'KEKAHA' location in Hawaii suggests a potential connection to Pacific-based missile defense assets or testing facilities.

How did the final contract value compare to the initial award estimate?

The provided data shows an initial award amount and a final obligated amount that are identical ($35,804,695). This suggests that the contract value did not significantly deviate from the initial estimate throughout its lifecycle. However, the contract type was 'COST PLUS AWARD FEE' (CPFF), which means the total cost incurred by the contractor, plus a negotiated fee, constituted the final price. The 'award fee' component is performance-based, meaning the government could adjust the fee based on the contractor's performance. The fact that the final obligated amount matches the initial value might imply that either the performance targets were met, leading to the full fee being awarded, or that the initial estimate already incorporated the expected maximum fee.

What is XONTECH, INC.'s track record with similar defense contracts?

The provided data identifies XONTECH, INC. as the contractor for this specific $35.8 million contract. To assess their track record with similar defense contracts, a broader search of federal procurement databases would be necessary. This would involve looking at other contracts awarded to XONTECH, INC., particularly those involving radar systems, defense electronics, or ballistic missile defense components. Analyzing the value, duration, competition level, and performance history of those other contracts would provide a more comprehensive understanding of their experience and reliability in the defense sector. Without this broader context, it's difficult to definitively characterize their overall track record.

Were there any performance issues or contract disputes during the contract's lifecycle?

The provided summary data does not contain specific details regarding performance issues or contract disputes for this contract. The contract was a definitive contract type, awarded on September 24, 2002, and completed on July 31, 2013, spanning over 10 years. While the contract was ultimately completed, the 'Cost Plus Award Fee' (CPFF) structure implies that contractor performance was evaluated and influenced the final fee. The absence of explicit dispute flags in the summary data suggests that any issues were likely resolved through contract administration or did not escalate to formal disputes. A deeper dive into contract performance reports or litigation records would be required for a definitive answer.

How does the spending on this type of radar equipment compare to other defense electronics procurements?

The $35.8 million awarded to XONTECH, INC. for radar equipment represents a significant but not exceptionally large sum within the context of overall Department of Defense spending on electronics and weapon systems. The specific focus on ballistic missile defense suggests a high-value, technologically advanced niche. To compare, one would need to analyze aggregate spending data for the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' (NAICS 334511) sector, as well as broader categories like 'Electronics and Communication Equipment' within the DoD. Such a comparison would reveal whether this contract's value is typical, high, or low relative to the government's investment in similar or related technologies.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 6862 HAYVENHURST AVE, VAN NUYS, CA, 91406

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline