Northrop Grumman awarded $2.46M for DRIVE,ANTENNA UNIT, with no competition

Contract Overview

Contract Amount: $2,458,330 ($2.5M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2022-10-12

End Date: 2025-12-11

Contract Duration: 1,156 days

Daily Burn Rate: $2.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DRIVE,ANTENNA UNIT

Place of Performance

Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22901

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $2.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DRIVE,ANTENNA UNIT Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract duration of nearly three years suggests a sustained need for the specified equipment. 3. The firm-fixed-price structure shifts cost risk to the contractor, which can be beneficial if costs are well-estimated. 4. The absence of small business set-aside indicates potential missed opportunities for smaller firms in this procurement. 5. The procurement falls under 'Other Communications Equipment Manufacturing,' a broad category with varying market dynamics. 6. The contract's value is relatively modest in the context of large defense procurements, but its sole-source nature warrants scrutiny.

Value Assessment

Rating: fair

Benchmarking the value of this specific 'DRIVE,ANTENNA UNIT' is challenging without more detailed specifications and market data. However, the $2.46 million award for a nearly three-year period, procured sole-source, suggests a potentially higher per-unit cost than if it had been competitively bid. Without comparable contracts or market rates for similar antenna units, a definitive value-for-money assessment is difficult. The firm-fixed-price contract type is generally favorable for the government in managing cost overruns, but the lack of competition raises concerns about whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Northrop Grumman Systems Corporation, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they typically result in less price competition and may not yield the most cost-effective outcome for the government compared to an open competition with multiple bidders.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that typically arise from a competitive bidding environment. This could translate to a higher overall expenditure for the government for the same goods or services.

Public Impact

The primary beneficiary is the Department of the Navy, which will receive the DRIVE,ANTENNA UNIT to support its operational requirements. The contract will deliver specific communications equipment, likely crucial for command, control, or intelligence functions. The geographic impact is primarily within the operational theaters or bases where the Navy utilizes this equipment. Workforce implications are likely concentrated within Northrop Grumman, potentially involving specialized engineers and technicians for manufacturing and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Lack of transparency in the justification for sole-source procurement.
Limited opportunity for small businesses to participate in this specific contract.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Long-term contract duration (nearly 3 years) provides stability for supply.
Award to an established contractor like Northrop Grumman may indicate reliability.

Sector Analysis

The 'Other Communications Equipment Manufacturing' sector is diverse, encompassing a wide range of products from simple antennas to complex signal processing units. The market includes large defense contractors and specialized electronics manufacturers. Federal spending in this area is driven by military modernization, technological upgrades, and the need for robust communication systems across various branches. This contract, valued at $2.46 million, represents a specific procurement within this broader sector, likely for a specialized component rather than a mass-produced item. Benchmarking requires comparison to similar specialized communication hardware procurements.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large prime contractor like Northrop Grumman suggests that opportunities for small businesses would likely be through lower-tier subcontracts, if at all. The absence of a small business set-aside in this sole-source procurement means direct opportunities for small businesses to compete for this specific contract were non-existent.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a sole-source award, the justification and approval process would be subject to specific federal acquisition regulations and potentially higher levels of review. Transparency is limited due to the non-competitive nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or award.

Related Government Programs

Defense Communications Systems
Naval Aviation Support Equipment
Electronic Warfare Systems
Tactical Data Links

Risk Flags

Sole-source award raises concerns about price reasonableness and competition.
Lack of detailed technical specifications hinders independent value assessment.
Potential for contractor lock-in due to long duration and single-source nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. DRIVE,ANTENNA UNIT

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 $2.5 million.

What is the period of performance?

Start: 2022-10-12. End: 2025-12-11.

What is the specific function and technical capability of the 'DRIVE,ANTENNA UNIT'?

The provided data does not specify the exact technical capabilities or function of the 'DRIVE,ANTENNA UNIT.' The classification 'Other Communications Equipment Manufacturing' (NAICS 334290) suggests it is a component within a broader communication system. Such units can range from simple radio antennas to complex integrated systems for data transmission, reception, or signal processing. Without further details, its precise role in naval operations remains unclear. Further investigation would require accessing the contract's statement of work or technical specifications.

Why was this contract awarded on a sole-source basis instead of being competed?

The data indicates the contract was 'NOT COMPETED.' Federal Acquisition Regulation (FAR) Part 6 outlines conditions under which full and open competition is not required, such as when only one responsible source exists, or for urgent and compelling reasons. For this specific contract, the justification for sole-source procurement is not provided. Common reasons include proprietary technology, unique system compatibility requirements, or lack of market research identifying alternative sources. A detailed justification document should exist within the agency's procurement file explaining why competition was not feasible or practicable.

How does the $2.46 million award compare to similar antenna unit procurements by the DoD?

Direct comparison of the $2.46 million award for the 'DRIVE,ANTENNA UNIT' to similar procurements is difficult without more specific technical details and market data. The classification 'Other Communications Equipment Manufacturing' is broad. However, considering the contract duration of nearly three years and the sole-source nature, the total value might be considered moderate for a specialized defense component. If this unit is a standard off-the-shelf item, the price could be benchmarked against commercial equivalents. If it's a highly specialized or proprietary system, comparisons become more complex and would require analyzing other sole-source or limited-competition awards for similar niche technologies within the DoD.

What is Northrop Grumman Systems Corporation's track record with the Department of the Navy for similar equipment?

Northrop Grumman Systems Corporation is a major defense contractor with a significant history of supplying various systems and components to the Department of the Navy. While specific details on their past performance related to 'DRIVE,ANTENNA UNIT' are not provided, the company is known for its work in areas such as aerospace, defense electronics, and information systems. Their extensive experience suggests a capability to deliver complex equipment. A thorough assessment would involve reviewing past performance evaluations and contract histories specifically related to communications hardware and related systems provided to the Navy.

What are the potential risks associated with a sole-source contract of this duration?

The primary risks associated with a sole-source contract, especially one spanning nearly three years, include potential cost overruns if initial pricing was not optimized, reduced incentive for the contractor to innovate or improve efficiency, and a lack of market validation for the chosen solution. Taxpayers are exposed to the risk of paying a premium compared to a competitive scenario. Furthermore, if the technology or requirements evolve, the government may be locked into a contract with a single vendor, limiting flexibility to adapt or switch to potentially superior or more cost-effective alternatives that might emerge during the contract period.

Are there any performance metrics or oversight mechanisms specified for this contract?

The provided data does not detail specific performance metrics or oversight mechanisms beyond the contract type (Firm Fixed Price) and duration. Typically, government contracts include clauses related to delivery schedules, quality standards, and acceptance criteria. For a sole-source award, the government relies heavily on the contractor's internal quality control and the expertise of its contracting officer's representative (COR) to monitor performance. Detailed oversight plans, including key performance indicators (KPIs) and inspection protocols, would be outlined in the contract's statement of work and associated clauses, which are not included in the summary data.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0010422RND90

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: $2,458,330

Exercised Options: $2,458,330

Current Obligation: $2,458,330

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0010422GZJ01

IDV Type: BOA

Timeline