DoD Awards Northrop Grumman $14.1M Contract for IMA & PDLR Support, Ending July 2028
Contract Overview
Contract Amount: $14,112,042 ($14.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-08-22
End Date: 2028-07-30
Contract Duration: 1,804 days
Daily Burn Rate: $7.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: IMA & PDLR SUPPORT FOR NSTF YORKTOWN
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IMA & PDLR SUPPORT FOR NSTF YORKTOWN Key points: 1. Contract awarded to a single, large business, raising questions about small business participation. 2. The contract is for ammunition manufacturing support, a critical defense sector. 3. A significant contract duration of 1804 days suggests long-term needs. 4. The cost-plus incentive fee structure aims to align contractor performance with government objectives.
Value Assessment
Rating: fair
The contract's value of $14.1M over approximately five years needs further benchmarking against similar support contracts for ammunition manufacturing. The cost-plus incentive fee structure allows for flexibility but requires careful monitoring to ensure cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the award to a single entity suggests that only one offer was deemed acceptable or that the competition ultimately led to a sole awardee.
Taxpayer Impact: The competitive award process is intended to secure the best value for taxpayers, but the final cost will depend on the contractor's performance and the incentive fee structure.
Public Impact
Ensures continued support for critical ammunition manufacturing capabilities. Supports national defense readiness through sustained operational capabilities. Potential for technological advancements in ammunition production processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business subcontracting noted.
- Long contract duration may limit future flexibility.
- Cost-plus contracts can lead to cost overruns if not managed tightly.
Positive Signals
- Awarded under full and open competition.
- Incentive fee structure aligns with performance goals.
- Supports critical defense manufacturing.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on ammunition production. Spending in this area is crucial for national security and is often characterized by long-term contracts and specialized requirements.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false) and does not explicitly mention small business subcontracting goals. Further investigation is needed to determine if small businesses will have opportunities to participate in the supply chain.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure compliance and performance.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns in cost-plus contracts.
- Limited visibility into small business participation.
- Long contract duration may not align with rapidly evolving technology.
- Dependence on a single large contractor for critical support.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IMA & PDLR SUPPORT FOR NSTF YORKTOWN
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 $14.1 million.
What is the period of performance?
Start: 2023-08-22. End: 2028-07-30.
What specific performance metrics are tied to the incentive fee structure, and how will they be measured to ensure optimal value for the government?
The incentive fee structure likely ties financial rewards to specific performance metrics such as delivery timelines, quality standards, cost control, and technical performance. These metrics would be clearly defined in the contract and monitored through regular reporting and government inspections. The goal is to incentivize Northrop Grumman to exceed minimum requirements and achieve superior outcomes, thereby maximizing the value derived from taxpayer funds.
Given the long duration, what is the strategy for managing potential technological obsolescence or shifts in defense requirements within the ammunition manufacturing sector?
The long duration necessitates a proactive approach to managing technological shifts. The contract may include clauses for periodic reviews, technology insertion points, or modification procedures to adapt to evolving defense needs and technological advancements. The cost-plus incentive fee structure could also incentivize the contractor to propose and implement innovative solutions that keep the supported capabilities current and effective throughout the contract period.
How will the Department of the Navy ensure that the full and open competition process truly resulted in the most cost-effective solution, considering the potential for specialized expertise?
The Department of the Navy would have established clear evaluation criteria based on technical capability, past performance, and price. During the full and open competition, multiple proposals would be assessed against these criteria. The final award decision would be based on the offer that represents the best value to the government, which is a balance of technical merit and cost. Post-award oversight will ensure the contractor adheres to the proposed cost structure and performance standards.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002422R6101
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7575 COLSHIRE DR # 1, MCLEAN, VA, 22102
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: $28,682,157
Exercised Options: $20,400,761
Current Obligation: $14,112,042
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-08-22
Current End Date: 2028-07-30
Potential End Date: 2028-07-30 00:00:00
Last Modified: 2025-11-18
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