DoD Awards Northrop Grumman $17.9M for Production RLGN Systems, Ending December 2025
Contract Overview
Contract Amount: $17,939,976 ($17.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-09-25
End Date: 2025-12-31
Contract Duration: 1,923 days
Daily Burn Rate: $9.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRODUCTION RLGN
Place of Performance
Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22901
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $17.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: PRODUCTION RLGN Key points: 1. Significant contract value of $17.9M awarded to a single large defense contractor. 2. Lack of competition raises questions about price discovery and potential overpayment. 3. Contract duration extends over 5 years, indicating a long-term need. 4. The sector is specialized in advanced navigation and guidance systems.
Value Assessment
Rating: questionable
The contract's value of $17.9M for Production RLGN systems lacks a clear benchmark for comparison due to the 'NOT COMPETED' status. Without competitive bids, assessing if this price is optimal or inflated is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition suggests taxpayers may be paying a premium for these systems, as the government did not leverage multiple bids to secure the lowest possible price.
Public Impact
Taxpayers may be overpaying for critical defense navigation systems due to the absence of competitive bidding. The long contract duration could lock in potentially inflated prices for an extended period. Dependence on a single contractor for these specialized systems could pose a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- High contract value
Positive Signals
- Award to established defense contractor
- Clear end date for contract performance
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this niche area is often characterized by high R&D costs and limited suppliers, but competitive bidding is still crucial.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor, and there is no indication of small business participation. This suggests a missed opportunity to engage smaller, innovative firms in this specialized sector.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is fair and reasonable. Transparency regarding the justification for not competing the contract is essential for accountability.
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
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Long-term contract duration
- Limited small business involvement
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. PRODUCTION RLGN
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 $17.9 million.
What is the period of performance?
Start: 2020-09-25. End: 2025-12-31.
What was the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure a fair and reasonable price?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. Agencies must conduct market research and price analyses to ensure the negotiated price is fair and reasonable, often comparing it to historical data or independent cost estimates. Without this information, it's difficult to assess value.
What are the potential risks associated with relying on a single contractor for these critical navigation systems over a five-year period?
Risks include potential supply chain disruptions if the contractor faces production issues, lack of incentive for innovation or cost reduction, and vulnerability to price increases upon contract renewal. Over-reliance can also stifle competition and limit the government's options for future procurements, potentially leading to higher long-term costs.
How does the lack of competition in this award impact the government's ability to secure advanced navigation technology at optimal prices in the future?
The absence of competition signals to the market that the government is willing to pay a premium for this specific technology from this contractor. This can discourage other potential suppliers from entering the market or developing competing solutions, thereby reducing future competitive opportunities and potentially increasing prices for similar systems.
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: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0002419R5230
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1070 SEMINOLE TRL, 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: $17,939,976
Exercised Options: $17,939,976
Current Obligation: $17,939,976
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002420D5230
IDV Type: IDC
Timeline
Start Date: 2020-09-25
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-06-10
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