DoD Awards Northrop Grumman $113M for DDG-51 Class Integrated Bridge & Navigation Systems
Contract Overview
Contract Amount: $113,131,234 ($113.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-10-24
End Date: 2026-02-01
Contract Duration: 2,657 days
Daily Burn Rate: $42.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DDG-51 CLASS INTEGRATED BRIDGE&NAVIGATION SYSTEMS
Place of Performance
Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22901
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $113.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DDG-51 CLASS INTEGRATED BRIDGE&NAVIGATION SYSTEMS Key points: 1. Contract awarded to a single, large defense contractor, indicating potential consolidation in specialized systems. 2. The $113M contract value is significant, suggesting complex and critical system integration for naval vessels. 3. Risk may lie in vendor lock-in and the long duration of the contract, potentially impacting future innovation. 4. Spending falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector.
Value Assessment
Rating: good
The contract value of $113M for integrated bridge and navigation systems appears reasonable given the complexity and specialized nature of naval warfare technology. Benchmarking against similar large-scale defense system integrations would provide a more precise assessment.
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 award to a single entity, Northrop Grumman, implies they were the most competitive bidder for this specific, complex system.
Taxpayer Impact: Taxpayer funds are being used for critical defense infrastructure, ensuring the operational readiness of the DDG-51 class destroyers.
Public Impact
Enhances navigation and operational capabilities for a key class of U.S. Navy destroyers. Supports the modernization and technological advancement of naval platforms. Ensures the safety and effectiveness of warfighting operations at sea. Contributes to the readiness of the fleet for national defense missions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2018-2026) may limit flexibility for future technological upgrades.
- Reliance on a single contractor for critical systems could pose supply chain risks.
- Potential for cost overruns if unforeseen technical challenges arise during integration.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Supports a vital component of naval fleet modernization.
- Firm Fixed Price contract provides cost certainty for the government.
Sector Analysis
This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, which is crucial for defense applications. Spending benchmarks for similar integrated systems on naval vessels would be relevant for a deeper analysis.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no explicit mention of small business participation in the provided data, suggesting potential for subcontracting opportunities.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The firm fixed price nature of the award provides a degree of cost control, but ongoing monitoring of performance and delivery is essential.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration
- Potential vendor lock-in
- Reliance on a single prime contractor
- Complexity of integrated systems
- Cybersecurity vulnerabilities in networked systems
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $113.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. DDG-51 CLASS INTEGRATED BRIDGE&NAVIGATION SYSTEMS
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $113.1 million.
What is the period of performance?
Start: 2018-10-24. End: 2026-02-01.
What is the specific technological advantage provided by these integrated bridge and navigation systems compared to previous generations?
The integrated systems likely offer enhanced situational awareness, improved data fusion from various sensors, and more automated navigation capabilities. This allows for more precise maneuvering in complex environments, better coordination with other vessels and aircraft, and potentially reduced crew workload, leading to increased operational efficiency and safety during missions.
What are the primary risks associated with a sole-source award for such critical naval systems, even if initially competed?
Even with initial competition, long-term reliance on a single provider can lead to vendor lock-in, stifling innovation and potentially increasing future costs due to lack of competitive pressure. Supply chain disruptions affecting the sole provider become direct risks to fleet readiness, and the government may have limited leverage if performance issues arise late in the contract lifecycle.
How does the firm fixed price (FFP) contract structure mitigate financial risks for the government on this long-duration project?
The FFP structure shifts most of the financial risk to the contractor, Northrop Grumman. The government agrees to pay a set price regardless of the contractor's actual costs. This provides significant budget certainty and protects taxpayers from potential cost overruns, provided the contract scope is well-defined and managed effectively.
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: SHIP AND MARINE EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002418R4201
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1070 SEMINOLE TRAIL, CHARLOTTESVILLE, VA, 22901
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $192,249,519
Exercised Options: $152,573,305
Current Obligation: $113,131,234
Actual Outlays: $19,853,582
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-10-24
Current End Date: 2026-02-01
Potential End Date: 2026-02-01 00:00:00
Last Modified: 2025-11-21
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