DoD awards $32.6M for MK44 MOD 4 30MM Guns, spares, and tooling to Northrop Grumman

Contract Overview

Contract Amount: $32,643,720 ($32.6M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2025-09-26

End Date: 2027-08-20

Contract Duration: 693 days

Daily Burn Rate: $47.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MK44 MOD 4, 30MM, GUNS WITH SPARES/SPECIAL TOOLING

Place of Performance

Location: MESA, MARICOPA County, ARIZONA, 85215

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $32.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MK44 MOD 4, 30MM, GUNS WITH SPARES/SPECIAL TOOLING Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. Limited competition may indicate specialized nature of the product or a lack of market alternatives. 3. Performance period extends over two years, suggesting a need for sustained supply of critical ordnance. 4. The contract is for a specific weapon system component, indicating a focused procurement within defense. 5. No small business set-aside was applied, suggesting the prime contractor is a large entity. 6. The firm-fixed-price structure aims to transfer cost risk to the contractor, but oversight is still crucial.

Value Assessment

Rating: fair

Benchmarking the value for this specific MK44 MOD 4 30MM gun system is challenging due to the sole-source nature of the award. Without competitive bids, it's difficult to definitively assess if the $32.6 million price represents optimal value for money. However, the firm-fixed-price contract type suggests the government has attempted to cap its financial exposure. Further analysis would require access to historical pricing for similar systems or internal cost estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one bidder, Northrop Grumman Systems Corporation, was solicited. This approach is typically used when a unique product or service is required, or when only one responsible source is available. The lack of competition means there was no opportunity for price negotiation or comparison against alternative suppliers, potentially leading to a higher price than if multiple bids were received.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without competing offers, the government lacks a strong basis to ensure the most cost-effective solution was secured.

Public Impact

The primary beneficiaries are the U.S. Navy, receiving critical armament components for their platforms. The contract delivers MK44 MOD 4 30MM guns, along with necessary spares and specialized tooling. The geographic impact is primarily within Arizona, where Northrop Grumman's facility is located for production. Workforce implications include employment at Northrop Grumman's Arizona facility, supporting specialized manufacturing roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Lack of transparency in the sole-source justification requires careful review.
Dependence on a single supplier for critical ordnance components poses a supply chain risk.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Award to an established defense contractor suggests a degree of reliability in production.
Delivery order structure allows for phased procurement and management of funds.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on the manufacturing of small arms and ordnance. The market for such specialized weapon systems is typically dominated by a few large, established defense contractors. Spending in this area is driven by military readiness requirements and modernization programs. Comparable spending benchmarks would involve analyzing other contracts for similar caliber gun systems or major weapon platform components.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to Northrop Grumman, a large defense contractor, suggests that the primary manufacturing and fulfillment will be handled by the prime. This procurement does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods within the agreed price. Transparency is limited due to the sole-source nature, but contract modifications and performance reports would be subject to standard government oversight procedures. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Surface Warfare
Ordnance Manufacturing
Weapon Systems Procurement
Defense Ammunition and Related Equipment

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price inflation
Supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. MK44 MOD 4, 30MM, GUNS WITH SPARES/SPECIAL 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 $32.6 million.

What is the period of performance?

Start: 2025-09-26. End: 2027-08-20.

What is the historical spending pattern for MK44 MOD 4 30MM guns by the Department of Defense?

Analyzing historical spending for the MK44 MOD 4 30MM gun system requires access to historical contract databases. Without specific prior awards for this exact configuration, it's difficult to establish a precise trend. However, the Department of Defense consistently procures armament systems and components to maintain readiness and modernize its fleet. Spending on such items is often cyclical, influenced by defense budgets, geopolitical events, and the lifecycle of existing platforms. The current $32.6 million award for guns, spares, and tooling suggests a significant investment, potentially for new platform integration or a substantial replenishment effort. Further investigation into previous contracts for similar caliber cannons or upgrades to existing systems would provide a more comprehensive historical context.

How does the unit cost of this contract compare to similar weapon systems procured by other military branches?

Direct unit cost comparison for the MK44 MOD 4 30MM gun is challenging without knowing the exact quantity of guns versus spares and tooling included in the $32.6 million total. Furthermore, the sole-source nature of this award means the price may not reflect market competition. To benchmark effectively, one would need to identify contracts for comparable 30mm cannons (e.g., Bushmaster cannons) procured competitively by other branches like the Army or Air Force. Analyzing the price per gun, excluding spares and tooling, and considering factors like contract year, inflation, and specific configuration differences would be necessary. Without such comparative data, assessing the value-for-money of this specific award remains difficult.

What are the specific risks associated with relying on a sole-source supplier for critical ordnance like the MK44 MOD 4 30MM gun?

Relying on a sole-source supplier for critical ordnance like the MK44 MOD 4 30MM gun presents several significant risks. Firstly, there is a lack of competitive pressure, which can lead to inflated prices and reduced incentive for the contractor to innovate or improve efficiency. Secondly, it creates a dependency that can be exploited; if the sole supplier faces production issues, financial difficulties, or decides to discontinue the product line, the government has limited alternatives, potentially jeopardizing operational readiness. Thirdly, the absence of competition can hinder the development of alternative technologies or suppliers in the future. Finally, the government has less leverage in negotiating terms and conditions, potentially increasing overall program risk and cost.

What is Northrop Grumman's track record with producing and delivering similar ordnance systems to the DoD?

Northrop Grumman Systems Corporation has a substantial track record in the defense industry, including the production of various ordnance systems and weapon components. They are known manufacturers of cannons and related systems for military applications. Their experience likely includes fulfilling complex defense contracts, adhering to stringent quality standards, and managing production schedules. While specific details on their performance for the MK44 MOD 4 30MM gun require deeper contract history review, their position as a major defense contractor suggests a capability to deliver such systems. Past performance evaluations and contract award histories would provide a more granular assessment of their reliability, on-time delivery rates, and quality control for similar products.

How does the duration of this contract (2027-08-20) align with the expected lifecycle and operational deployment of the MK44 MOD 4 30MM gun?

The contract's end date of August 20, 2027, provides a delivery period of approximately two years from the estimated start date. This duration suggests that the procurement is likely for immediate or near-term operational needs, potentially for equipping new platforms, replenishing existing stocks, or fulfilling specific deployment requirements. The MK44 MOD 4 30MM gun is a relatively modern and capable weapon system, often integrated into various naval and ground combat vehicles. A two-year procurement window is reasonable for manufacturing and delivering such specialized equipment, including spares and tooling. It allows for production planning and phased delivery without committing to excessively long-term sole-source arrangements, which could be problematic.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $32,643,720

Exercised Options: $32,643,720

Current Obligation: $32,643,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0016423GJN16

IDV Type: BOA

Timeline