DoD's $24.9M Speed Changer Contract Awarded to Northrop Grumman Under Full and Open Competition
Contract Overview
Contract Amount: $24,944,203 ($24.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2008-01-09
End Date: 2016-01-31
Contract Duration: 2,944 days
Daily Burn Rate: $8.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BASE REQUIREMENT -- SHIPSET 1
Place of Performance
Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94088
Plain-Language Summary
Department of Defense obligated $24.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: BASE REQUIREMENT -- SHIPSET 1 Key points: 1. Contract awarded to a single, large defense contractor. 2. The contract value is substantial, indicating a significant procurement. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The sector is industrial manufacturing, specifically high-speed drives and gear manufacturing.
Value Assessment
Rating: fair
The contract value of $24.9M for a speed changer is difficult to benchmark without specific technical details. However, given the duration and the nature of industrial equipment, the pricing appears within a reasonable range for a specialized, high-value component.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and promotes competitive pricing. This method is expected to yield fair market value.
Taxpayer Impact: Taxpayer funds were used for this procurement, with the expectation that competition ensured a reasonable price for the required equipment.
Public Impact
Ensures operational readiness for naval vessels by providing critical speed changing components. Supports the defense industrial base through a significant contract award. The procurement contributes to the maintenance and upgrade of naval propulsion systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific unit cost data makes detailed value assessment challenging.
- Contract duration is long, potentially leading to price escalation risks if not managed.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical defense infrastructure.
Sector Analysis
This contract falls within the industrial machinery and equipment sector, specifically related to defense applications. Spending in this area is driven by military modernization and maintenance needs, with benchmarks varying widely based on equipment complexity and scale.
Small Business Impact
The data indicates this contract was awarded to Northrop Grumman Systems Corporation, a large defense contractor. There is no explicit indication of small business participation in this specific award, suggesting it was likely a prime contract to a major entity.
Oversight & Accountability
The contract was awarded by the Department of the Navy, part of the Department of Defense. Standard government oversight mechanisms for contract performance and financial management would apply.
Related Government Programs
- Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration.
- Lack of detailed technical specifications.
- Potential for price creep over the contract's life.
- Limited insight into specific performance metrics.
Tags
speed-changer-industrial-high-speed-driv, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. BASE REQUIREMENT -- SHIPSET 1
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 $24.9 million.
What is the period of performance?
Start: 2008-01-09. End: 2016-01-31.
What is the specific technical capability and performance requirement of this speed changer, and how does it compare to commercially available alternatives?
The specific technical capabilities and performance requirements of the 'Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing' are not detailed in the provided data. A comprehensive assessment would require comparing these specifications against commercially available alternatives to determine if the unique military requirements justified the contract's scope and potential cost.
What were the key factors considered during the full and open competition that led to the selection of Northrop Grumman Systems Corporation?
During the full and open competition, the selection of Northrop Grumman Systems Corporation likely involved a thorough evaluation of technical proposals, past performance, and price. The government would have assessed which offer best met the specified requirements, considering factors such as reliability, delivery schedule, and overall value for the taxpayer.
How effectively has the Department of the Navy managed the long-term performance and potential cost overruns of this multi-year contract?
The provided data covers the period from 2008 to 2016. Assessing the effectiveness of management requires reviewing performance reports, delivery records, and any contract modifications or claims submitted during its execution. Without this detailed performance history, it's difficult to definitively evaluate cost overrun management.
Industry Classification
NAICS: Manufacturing › Engine, Turbine, and Power Transmission Equipment Manufacturing › Speed Changer, Industrial High-Speed Drive, and Gear Manufacturing
Product/Service Code: MECHANICAL POWER TRANSMISSION EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003306R8002
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 401 E HENDY AVE MS 33-3, SUNNYVALE, CA, 94086
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $26,216,805
Exercised Options: $24,944,203
Current Obligation: $24,944,203
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2008-01-09
Current End Date: 2016-01-31
Potential End Date: 2016-01-31 00:00:00
Last Modified: 2017-03-02
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