DoD Awards Northrop Grumman $33M for DDG-51 Modernization IBNS
Contract Overview
Contract Amount: $32,952,444 ($33.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2008-06-30
End Date: 2015-06-30
Contract Duration: 2,556 days
Daily Burn Rate: $12.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: INTEGRATED BRIDGE AND NAVIGATION SYSTEMS (IBNS) FOR DDG-51 MODERNIZATION
Place of Performance
Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22901
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $33.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: INTEGRATED BRIDGE AND NAVIGATION SYSTEMS (IBNS) FOR DDG-51 MODERNIZATION Key points: 1. Northrop Grumman, a major defense contractor, secured this contract. 2. The contract was awarded under full and open competition. 3. The firm fixed price contract type aims to control costs. 4. This spending supports the modernization of critical naval assets.
Value Assessment
Rating: good
The award amount of $32.95M for IBNS modernization appears reasonable given the complexity of naval systems. Benchmarking against similar modernization contracts for DDG-51 class destroyers would provide further context on value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process that should have driven price discovery. The use of a definitive contract indicates a well-defined scope.
Taxpayer Impact: Taxpayer funds are being used for essential defense modernization, ensuring the continued operational effectiveness of the DDG-51 fleet.
Public Impact
Enhances the combat capabilities and lifespan of Arleigh Burke-class destroyers. Supports U.S. Navy's technological superiority in maritime operations. Contributes to the defense industrial base and associated jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex modernization projects.
- Dependence on a single contractor for critical system integration.
Positive Signals
- Firm fixed price contract structure.
- Awarded under full and open competition.
- Modernization of key naval assets.
Sector Analysis
Defense spending on naval modernization is crucial for maintaining fleet readiness and technological advantage. Benchmarks for similar IBNS upgrades on destroyers would indicate if this $33M award is within expected ranges.
Small Business Impact
This contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in the provided data.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is necessary to ensure performance and cost control.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Contract duration (2008-2015) is lengthy.
- Potential for scope creep in modernization projects.
- Reliance on a single prime contractor.
- Firm Fixed Price contract may not fully account for unforeseen cost increases.
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. INTEGRATED BRIDGE AND NAVIGATION SYSTEMS (IBNS) FOR DDG-51 MODERNIZATION
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 $33.0 million.
What is the period of performance?
Start: 2008-06-30. End: 2015-06-30.
What is the specific scope of the IBNS modernization and how does it improve system performance?
The Integrated Bridge and Navigation Systems (IBNS) modernization likely encompasses upgrades to radar, navigation sensors, communication equipment, and control interfaces. The goal is to enhance situational awareness, improve operational efficiency, and ensure compatibility with future network-centric warfare capabilities, thereby increasing the overall effectiveness and safety of the DDG-51 class destroyers.
What are the key risks associated with the long duration and firm fixed price nature of this contract?
A significant risk with a long-duration, firm-fixed-price contract is the potential for the contractor to face unforeseen cost increases due to inflation or material price volatility, which could impact profitability or lead to claims. Conversely, if the contractor significantly underestimates costs, the government might not receive the full benefit of competitive pricing.
How does this modernization contribute to the overall effectiveness and readiness of the DDG-51 fleet?
Modernizing the IBNS is critical for maintaining the operational effectiveness and readiness of the DDG-51 destroyers. Upgraded systems improve navigation accuracy, enhance target detection and tracking, and ensure seamless communication, all vital for mission success in complex maritime environments and for interoperability with allied forces.
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: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002407R4411
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 1070 SEMINOLE TRAIL, CHARLOTTESVILLE, VA, 22901
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $47,416,972
Exercised Options: $32,952,444
Current Obligation: $32,952,444
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-06-30
Current End Date: 2015-06-30
Potential End Date: 2015-06-30 00:00:00
Last Modified: 2017-09-27
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