DoD Awards $21.5M for Production RLGN to Northrop Grumman, Lacking Competition
Contract Overview
Contract Amount: $21,548,945 ($21.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-08-11
End Date: 2025-12-31
Contract Duration: 1,603 days
Daily Burn Rate: $13.4K/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 $21.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: PRODUCTION RLGN Key points: 1. Significant contract value of $21.5 million awarded. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Potential for higher costs due to lack of competitive bidding. 4. Contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $21.5 million for Production RLGN is difficult to assess without specific unit details. However, the lack of competition suggests potential overpricing compared to what might be achieved through a competitive process.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and may lead to less favorable pricing for the government.
Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for these systems.
Public Impact
Taxpayers may be overpaying for critical defense systems due to a lack of competitive bidding. The sole-source award raises questions about the government's procurement strategy and its ability to secure the best value. Dependence on a single contractor for this specific system could pose long-term supply chain risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Contract awarded to established defense contractor
- Clear end date for contract performance
Sector Analysis
This contract is within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is critical for national defense, but competitive procurement is essential to ensure cost-effectiveness.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large defense contractor. There is no indication that small businesses were involved in this specific sole-source award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value and that competition was appropriately waived.
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 competition
- Potential for cost overruns
- Limited transparency in pricing
- Risk of vendor lock-in
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 $21.5 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 $21.5 million.
What is the period of performance?
Start: 2021-08-11. End: 2025-12-31.
What is the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific documentation, it's impossible to confirm the validity of this justification for the Production RLGN contract. Further investigation is needed to understand why competition was deemed impractical or impossible.
What are the potential long-term risks associated with relying on a single supplier for this critical defense system?
Long-term risks include potential price increases due to lack of market pressure, supply chain vulnerabilities if the sole source faces production issues, and a lack of innovation if alternative solutions are not explored. This dependence can also reduce the government's negotiating leverage over time, potentially leading to higher lifecycle costs.
How does the pricing of this sole-source contract compare to similar systems procured competitively, if such comparisons are possible?
Direct comparison is challenging due to the sole-source nature and potential uniqueness of the RLGN system. However, generally, sole-source contracts tend to be higher than competitively procured ones. A thorough cost analysis by the agency, comparing the awarded price to historical data or industry benchmarks for comparable functionalities, would be necessary to assess value.
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: $21,548,945
Exercised Options: $21,548,945
Current Obligation: $21,548,945
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,739
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: 2021-08-11
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-06-10
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