DoD's $25.8M AN/SPQ-9B Radar Services Contract Awarded to Northrop Grumman Without Competition
Contract Overview
Contract Amount: $25,771,497 ($25.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2015-09-23
End Date: 2020-09-30
Contract Duration: 1,834 days
Daily Burn Rate: $14.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF AN/SPQ-9B DA/TE SERVICES
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $25.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF AN/SPQ-9B 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 1834 days suggests long-term need. 4. Engineering services sector, with potential for high costs. 5. Lack of competition may impact price discovery and value.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a sole-source award, makes a direct pricing assessment difficult. Without competitive bids, it's hard to determine if the $25.8 million represents fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award to Northrop Grumman. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive pricing, which could result in a less efficient use of resources.
Public Impact
Radar system maintenance and upgrades are critical for national defense. The sole-source nature of this contract could set a precedent for future sole-source awards. Transparency in sole-source procurements is crucial for public trust. Long-term contracts can indicate essential but potentially costly government needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Essential defense system support
- Established contractor relationship
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense radar systems. Benchmarks for similar specialized engineering services can vary widely, but sole-source awards often deviate from competitive norms.
Small Business Impact
The data does not indicate any subcontracting to small businesses. The prime contractor, Northrop Grumman, is a large corporation, and the sole-source nature of the award may limit opportunities for small businesses to participate.
Oversight & Accountability
The contract was awarded by the Department of Defense, with oversight likely managed by the Defense Contract Management Agency. The lack of competition warrants scrutiny to ensure fair pricing and effective service delivery.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Cost-plus contract type may inflate costs.
- Long duration without clear competition raises value concerns.
- Potential for contractor lock-in.
- Limited transparency on justification for sole-sourcing.
Tags
engineering-services, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF AN/SPQ-9B 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 $25.8 million.
What is the period of performance?
Start: 2015-09-23. End: 2020-09-30.
What specific justification was provided for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data indicates the contract was 'NOT COMPETED.' A thorough review would require accessing the contract file to determine the specific justification (e.g., sole source justification, urgent need) and whether any market research was conducted to explore competitive options before proceeding with a sole-source award.
How does the cost-plus-fixed-fee structure impact the government's ability to control costs and ensure value for money in this sole-source scenario?
Cost-plus-fixed-fee contracts can incentivize contractors to increase costs, as the fee is a percentage of the total costs. In a sole-source situation, without competitive pressure, the government has limited leverage to negotiate cost reductions, potentially leading to suboptimal value for taxpayer money.
What performance metrics and deliverables are in place to ensure the effectiveness and quality of the engineering services provided by Northrop Grumman?
The data does not specify performance metrics or deliverables. Effective oversight would require clear performance standards, regular progress reviews, and mechanisms for addressing any deficiencies in service quality or timeliness to ensure the AN/SPQ-9B radar system receives adequate support.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002414R5347
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: ONE GRUMMAN RD W, BETHPAGE, NY, 11714
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,061,782
Exercised Options: $26,228,669
Current Obligation: $25,771,497
Actual Outlays: $50,472
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-09-23
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2025-07-10
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