DoD Awards Northrop Grumman $486M for Wireless Comms Equipment, Sole-Source Contract
Contract Overview
Contract Amount: $4,864,610 ($4.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-07-29
End Date: 2031-04-14
Contract Duration: 3,181 days
Daily Burn Rate: $1.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MAST SECTION
Place of Performance
Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22901
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $4.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MAST SECTION Key points: 1. Significant contract value of $486.46 million awarded to a major defense contractor. 2. Sole-source award raises questions about competition and potential price overruns. 3. Long contract duration (2022-2031) suggests a critical, long-term need. 4. The sector is vital for defense communications, but the lack of competition is a concern.
Value Assessment
Rating: questionable
The contract value is substantial. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar wireless communications equipment.
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 as there's no market pressure to offer the best price.
Taxpayer Impact: The lack of competition in this large contract could result in higher taxpayer costs than if multiple vendors had vied for the work.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract impacts budget planning for the Department of Defense. Reliance on a single supplier for critical communications equipment could pose a supply chain risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Long contract duration
- Lack of small business participation indicated
Positive Signals
- Addresses critical defense need
- Firm fixed price contract type can offer cost certainty
Sector Analysis
This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector, crucial for modern defense operations. Benchmarks for similar sole-source contracts in this specialized area are hard to establish without competitive data.
Small Business Impact
The data indicates no specific set-aside for small businesses (sb: false). This suggests that small businesses were likely not involved in this large, sole-source contract, missing an opportunity for their participation.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure the price remains fair and reasonable throughout its duration and that performance meets all requirements.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- High contract value increases financial risk.
- Long duration may lead to price escalation or obsolescence.
- No indication of small business participation.
- Potential for vendor lock-in.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, va, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $4.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. MAST SECTION
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 $4.9 million.
What is the period of performance?
Start: 2022-07-29. End: 2031-04-14.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable without competition?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of alternatives. The government should have conducted a price analysis based on historical data, commercial pricing, or other available benchmarks to ensure the price is fair and reasonable, even without direct competition.
What are the potential risks associated with a sole-source contract of this magnitude and duration for critical communications equipment?
Risks include inflated pricing due to lack of competition, potential for vendor complacency, and supply chain vulnerabilities if the sole provider faces disruptions. There's also a risk of technological obsolescence over the contract's long lifespan if upgrades aren't proactively managed.
How does this contract contribute to the Department of Defense's overall mission effectiveness and technological advancement in wireless communications?
This contract likely provides essential, specialized wireless communication equipment necessary for operational effectiveness. However, the lack of competition might stifle innovation compared to a scenario where multiple vendors compete, potentially driving faster technological advancements and more cost-effective solutions.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0010422RFD13
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
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: $4,864,610
Exercised Options: $4,864,610
Current Obligation: $4,864,610
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-07-29
Current End Date: 2031-04-14
Potential End Date: 2031-04-14 00:00:00
Last Modified: 2026-01-13
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