DoD Awards Northrop Grumman $103M for UK Deployed Systems Support Through 2026
Contract Overview
Contract Amount: $103,094,818 ($103.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-10-01
End Date: 2026-09-30
Contract Duration: 729 days
Daily Burn Rate: $141.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: FY25 UK DEPLOYED SYSTEMS SUPPORT
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374
Plain-Language Summary
Department of Defense obligated $103.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: FY25 UK DEPLOYED SYSTEMS SUPPORT Key points: 1. Significant contract value of $103M for engineering services. 2. Sole-source award to Northrop Grumman raises questions about competition. 3. Contract duration of 729 days spans FY25 and FY26. 4. Focus on deployed systems support in the UK indicates strategic importance.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been awarded through a competitive bidding process.
Public Impact
Ensures continued support for critical deployed systems in the UK. Potential for cost inefficiencies due to sole-source nature. Impact on US-UK defense cooperation and readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Incentive Fee contract type
- Lack of competition
Positive Signals
- Supports critical deployed systems
- Long-term contract duration
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector often characterized by specialized expertise and long-term relationships. The value is substantial for a single contract in this category, especially for overseas support.
Small Business Impact
The awardee, Northrop Grumman Systems Corporation, is a large business. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
Oversight will be crucial to ensure Northrop Grumman meets performance objectives and that costs remain within reasonable bounds, especially given the sole-source nature and incentive fee structure.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns (CPIF)
- Limited transparency on specific systems supported
- No small business participation noted
Tags
engineering-services, department-of-defense, dc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $103.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. FY25 UK DEPLOYED SYSTEMS SUPPORT
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 $103.1 million.
What is the period of performance?
Start: 2024-10-01. End: 2026-09-30.
What specific deployed systems in the UK are covered by this support contract, and what is their criticality to national security?
The contract details do not specify the exact systems. However, given the Department of the Navy and the UK location, it likely pertains to naval or joint forces' critical operational platforms or infrastructure. Understanding the criticality is essential for justifying the sole-source award and the $103M investment.
What was the justification for not competing this contract, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. Without further documentation, it's unclear why competition was bypassed. Exploring if a limited competition or other methods could have yielded better value is important for accountability.
How will the performance incentives be structured to ensure cost-effectiveness and successful delivery of support services?
The contract is a Cost Plus Incentive Fee (CPIF) type. This means the contractor is reimbursed for allowable costs plus a fixed fee, with a target cost, minimum fee, and maximum fee. Incentives are tied to achieving cost, performance, and schedule targets. Effective oversight is needed to ensure these incentives drive desired outcomes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003025R1010
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 401 E HENDY AVE, SUNNYVALE, CA, 94086
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: $386,124,364
Exercised Options: $162,392,820
Current Obligation: $103,094,818
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-10-01
Current End Date: 2026-09-30
Potential End Date: 2029-09-30 00:00:00
Last Modified: 2025-12-16
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