DoD awards Northrop Grumman $177M for Airborne Laser Mine Detection System, raising cost concerns
Contract Overview
Contract Amount: $176,961,207 ($177.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2014-12-23
End Date: 2022-08-30
Contract Duration: 2,807 days
Daily Burn Rate: $63.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AIRBORNE LASER MINE DETECTION SYSTEM
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $177.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: AIRBORNE LASER MINE DETECTION SYSTEM Key points: 1. High contract value of $177M for specialized defense technology. 2. Northrop Grumman is a major defense contractor, indicating potential market concentration. 3. Risk of cost overruns and schedule delays in complex defense systems. 4. Spending falls within the 'Defense' sector, characterized by high R&D and specialized equipment.
Value Assessment
Rating: questionable
The contract value of $177M appears high for a single system, especially considering the duration. Benchmarking against similar advanced sensor systems is difficult due to the specialized nature, but the cost warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the final price and its discovery mechanism are not detailed, leaving room for potential price inefficiencies.
Taxpayer Impact: Taxpayers are funding a significant investment in advanced military technology, with the ultimate value and efficiency of this spending needing further assessment.
Public Impact
Enhances naval warfare capabilities by providing advanced mine detection. Supports national security objectives by safeguarding naval assets and personnel. Potential for technological advancements with dual-use applications in civilian sectors. Contributes to the defense industrial base and high-tech job creation.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- High total contract value
- Long contract duration
- Lack of detailed cost breakdown
Positive Signals
- Advanced technology development
- Supports critical defense mission
- Full and open competition
Sector Analysis
This contract falls within the Defense sector, specifically in advanced sensor and navigation systems. Spending benchmarks for such highly specialized, R&D-intensive equipment are difficult to establish due to unique requirements and limited market comparisons.
Small Business Impact
The prime contractor is Northrop Grumman, a large corporation. There is no explicit information provided regarding small business participation or subcontracting goals within this contract.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for oversight. The contract's long duration and high value necessitate robust oversight 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
- High total contract value
- Long contract duration
- Potential for cost overruns
- Technological complexity
- Limited competition for specialized systems
Tags
search-detection-navigation-guidance-aer, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $177.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. AIRBORNE LASER MINE DETECTION SYSTEM
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 $177.0 million.
What is the period of performance?
Start: 2014-12-23. End: 2022-08-30.
What is the specific technological advantage this system provides over existing mine detection methods, and does it justify the $177M investment?
The Airborne Laser Mine Detection System (ALMMDS) offers rapid, standoff detection of naval mines, significantly reducing risk to personnel and vessels compared to traditional methods. Its advanced laser technology can penetrate water to identify submerged threats. The $177M investment is intended to provide a critical operational advantage in mine countermeasures, though a detailed cost-benefit analysis comparing its effectiveness and lifecycle costs against alternatives would be needed for full justification.
Given the long contract duration (2014-2022) and significant cost, what are the primary risks associated with the program's execution and final delivery?
Key risks include potential cost overruns due to the complexity of integrating laser technology with airborne platforms and the extended development timeline. Schedule delays are also a concern, as seen in the contract's duration. Furthermore, technological obsolescence could arise if the system's capabilities are surpassed by emerging threats or alternative solutions during its long development and fielding period.
How effectively does this contract leverage competition to ensure the best value for taxpayer dollars, despite the specialized nature of the technology?
The contract was awarded under 'full and open competition,' indicating an initial effort to solicit bids broadly. However, the specialized nature of advanced defense systems often limits the number of capable bidders. The effectiveness in ensuring best value hinges on the rigor of the evaluation process and the government's ability to negotiate favorable terms, especially given the long-term nature and potential for sole-source follow-on work.
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: WEAPONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002413R6318
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2000 W NASA BLVD, MELBOURNE, FL, 32904
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $526,683,763
Exercised Options: $178,336,794
Current Obligation: $176,961,207
Actual Outlays: $17,205,459
Subaward Activity
Number of Subawards: 74
Total Subaward Amount: $91,259,643
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2014-12-23
Current End Date: 2022-08-30
Potential End Date: 2022-08-30 00:00:00
Last Modified: 2025-05-28
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