DoD awards Northrop Grumman $6.6M for 30MM Guns and Parts, with delivery through August 2026
Contract Overview
Contract Amount: $6,616,422 ($6.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-12-21
End Date: 2026-08-31
Contract Duration: 984 days
Daily Burn Rate: $6.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 30MM GUNS AND ASSOCIATED SPARE PARTS/TOOLING
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85215
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $6.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 30MM GUNS AND ASSOCIATED SPARE PARTS/TOOLING Key points: 1. Contract awarded to a single, large business prime. 2. No competition was utilized for this award. 3. The contract is for ordnance manufacturing, a critical defense sector. 4. Potential for price escalation exists due to firm-fixed-price contract type and long duration.
Value Assessment
Rating: fair
The award amount of $6.62 million is for 30MM guns and associated parts. Benchmarking against similar ordnance contracts is difficult without more detailed specifications, but the value appears reasonable for specialized military hardware.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. The lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition may result in a higher cost to taxpayers than if the contract had been awarded through a competitive process.
Public Impact
Ensures continued supply of critical 30MM ammunition systems for naval operations. Supports a major defense contractor's manufacturing capabilities. Impacts readiness and operational effectiveness of naval platforms utilizing these guns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration
Positive Signals
- Supports critical defense need
- Firm-fixed-price contract
Sector Analysis
This contract falls within the defense manufacturing sector, specifically ordnance. Spending in this area is driven by military readiness requirements and technological advancements in weaponry. Benchmarks are highly specific to weapon system type and quantity.
Small Business Impact
This contract was awarded to a large business prime contractor and does not appear to include any subcontracting goals for small businesses. Therefore, the direct impact on small businesses is likely minimal.
Oversight & Accountability
The Department of the Navy awarded this contract. Oversight will focus on delivery schedules, quality control of manufactured goods, and adherence to the firm-fixed-price terms to ensure value for money.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost overruns if not closely managed.
- Long contract duration increases exposure to market fluctuations.
- Lack of small business subcontracting opportunities.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, az, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $6.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 30MM GUNS AND ASSOCIATED SPARE PARTS/TOOLING
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 $6.6 million.
What is the period of performance?
Start: 2023-12-21. End: 2026-08-31.
What is the justification for the sole-source award, and was market research conducted to confirm no other capable sources exist?
The justification for a sole-source award is crucial for understanding why competition was bypassed. If market research was performed, it should demonstrate that only Northrop Grumman possesses the necessary technical capabilities, proprietary data, or unique manufacturing processes required for these specific 30MM guns and associated parts, thereby validating the limited competition approach.
How will the government ensure cost-effectiveness and prevent potential price creep over the contract's nearly two-year duration, given the lack of competition?
To mitigate cost risks in a non-competed contract, the government should employ robust cost analysis, including reviewing Northrop Grumman's cost proposals and potentially using historical pricing data for similar items. Strong contract administration and performance monitoring are essential to ensure adherence to the firm-fixed-price terms and to identify any potential deviations or requests for equitable adjustments early on.
What is the specific operational requirement driving the need for these 30MM guns and parts, and how does this award contribute to overall naval readiness?
Understanding the specific operational requirement provides context for the contract's importance. This award likely supports the sustainment or modernization of naval platforms equipped with 30MM cannons, which are vital for air defense, anti-surface warfare, and shore bombardment. Ensuring a steady supply of these systems directly contributes to maintaining the combat readiness and effectiveness of the fleet.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0016423RJN16
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 4700 NATHAN LN N, PLYMOUTH, MN, 55442
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: $6,616,422
Exercised Options: $6,616,422
Current Obligation: $6,616,422
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $109,015
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0016423GJN16
IDV Type: BOA
Timeline
Start Date: 2023-12-21
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 00:00:00
Last Modified: 2025-12-04
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