DoD's $22M AN/SPQ-9B Radar Services Contract Awarded to Northrop Grumman Without Competition
Contract Overview
Contract Amount: $21,960,167 ($22.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2009-10-30
End Date: 2014-09-30
Contract Duration: 1,796 days
Daily Burn Rate: $12.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AN/SPQ-9B RADAR PROGRAM DA/TE SERVICES
Place of Performance
Location: MELVILLE, SUFFOLK County, NEW YORK, 11747
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $22.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: AN/SPQ-9B RADAR PROGRAM DA/TE SERVICES Key points: 1. Significant spending on specialized radar system services. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Contract duration of nearly 5 years suggests long-term need. 4. High value indicates critical system importance for the DoD.
Value Assessment
Rating: questionable
The contract value of $21.96 million for DA/TE services is difficult to assess without specific performance metrics or comparable contracts. The cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The 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 competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition on this $21.96 million contract may result in taxpayers paying more than necessary for these specialized radar services.
Public Impact
Impacts military readiness by providing essential radar capabilities. Potential for increased costs due to sole-source award. Supports a major defense contractor's operations. Limited transparency on the necessity of a sole-source approach.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Essential defense system support
- Long-term contract indicates sustained need
Sector Analysis
This contract falls within the Defense sector, specifically related to advanced radar systems. Spending benchmarks for similar specialized DA/TE services are hard to establish due to the niche nature and sole-source award.
Small Business Impact
The awardee is Northrop Grumman Systems Corporation, a large business. There is no indication that small businesses were involved in this specific contract, 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 effectiveness of oversight in ensuring value for money on sole-source, cost-plus contracts is a key accountability concern.
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
- Sole-source award lacks competition
- Cost-plus contract type can inflate costs
- Limited transparency on justification for sole-source
- Potential for higher taxpayer cost due to lack of competition
Tags
search-detection-navigation-guidance-aer, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. AN/SPQ-9B RADAR PROGRAM DA/TE SERVICES
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 $22.0 million.
What is the period of performance?
Start: 2009-10-30. End: 2014-09-30.
Was a thorough market research conducted to justify the sole-source award for the AN/SPQ-9B radar services, and were there truly no other capable sources?
Justifying a sole-source award requires demonstrating that only one responsible source can provide the required supplies or services. For the AN/SPQ-9B radar services, the DoD would need to document why Northrop Grumman was the only viable option, considering factors like proprietary technology, unique expertise, or existing system integration. Without this documentation, the decision raises questions about potential missed opportunities for competitive pricing.
What specific performance metrics and deliverables were established in this Cost Plus Fixed Fee contract to ensure effective service delivery and control costs?
Cost Plus Fixed Fee contracts aim to provide a degree of cost certainty while allowing for flexibility. For this AN/SPQ-9B radar services contract, specific performance metrics would likely relate to system availability, maintenance response times, and successful execution of diagnostic and testing procedures. The fixed fee component incentivizes the contractor to complete the work within the estimated cost, but effective oversight is crucial to prevent scope creep and ensure the fee remains reasonable.
How does the $21.96 million expenditure for DA/TE services compare to the overall lifecycle cost and operational value of the AN/SPQ-9B radar system?
Assessing the value requires understanding the AN/SPQ-9B's role in the DoD's operational capabilities. If this radar system is critical for threat detection and navigation, the $21.96 million expenditure over nearly five years might represent a reasonable investment. However, without data on system uptime, effectiveness in real-world scenarios, and the cost of potential alternatives or system obsolescence, a definitive value judgment is challenging.
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
Solicitation ID: N0002409R5306
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 65 MARCUS DR, MELVILLE, NY, 11747
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $39,350,643
Exercised Options: $21,984,218
Current Obligation: $21,960,167
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-10-30
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2025-07-17
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