Navy awards $8.08M for MK 44 MOD 3 Gun Systems, with Northrop Grumman as sole source

Contract Overview

Contract Amount: $8,077,632 ($8.1M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2025-09-23

End Date: 2026-12-23

Contract Duration: 456 days

Daily Burn Rate: $17.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 30MM MK 44 MOD 3 GUNS WITH ASSOCIATED SPARE PARTS AND SPECIAL TOOLING

Place of Performance

Location: MESA, MARICOPA County, ARIZONA, 85215

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $8.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 30MM MK 44 MOD 3 GUNS WITH ASSOCIATED SPARE PARTS AND SPECIAL TOOLING Key points: 1. Contract awarded on a sole-source basis, raising questions about price competitiveness. 2. Limited competition may lead to higher costs for taxpayers compared to an open market. 3. The contract duration of 456 days suggests a moderate-term need for these weapon systems. 4. Northrop Grumman's established role in defense manufacturing positions them for this award. 5. The specific nature of the MK 44 MOD 3 gun system indicates a specialized defense requirement. 6. Focus on spare parts and tooling suggests a comprehensive support package beyond just the weapon itself.

Value Assessment

Rating: questionable

The contract value of $8.08 million for 30 MK 44 MOD 3 gun systems, spare parts, and tooling is difficult to benchmark without comparable sole-source awards. However, the lack of competition inherently limits the government's ability to secure the best possible price. The firm-fixed-price structure provides cost certainty but does not guarantee value for money in a non-competitive scenario. Further analysis would require access to historical pricing data 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 vendor, Northrop Grumman Systems Corporation, was solicited. The data does not provide justification for this sole-source award, such as a specific emergency or unique capability. The lack of competition means there was no opportunity for other manufacturers to bid, potentially limiting price discovery and the government's ability to negotiate favorable terms.

Taxpayer Impact: Sole-source awards can result in higher prices for taxpayers as there is no competitive pressure to drive down costs. This limits the government's purchasing power and potentially diverts funds that could be used for other critical needs.

Public Impact

The U.S. Navy benefits from the acquisition of advanced weapon systems for its fleet. This contract delivers 30 MK 44 MOD 3 gun systems, crucial for naval combat capabilities. Associated spare parts and special tooling ensure the operational readiness and maintainability of the weapon systems. The geographic impact is primarily within the defense sector, supporting naval operations. Workforce implications may include specialized manufacturing and technical support roles at Northrop Grumman.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value for taxpayer dollars.
Lack of transparency regarding the justification for sole-source procurement.
Potential for higher costs due to absence of market competition.
Dependence on a single contractor for critical weapon system components.

Positive Signals

Award to a known defense contractor with established manufacturing capabilities.
Inclusion of spare parts and tooling suggests a focus on long-term system support and readiness.
Firm-fixed-price contract provides cost certainty for the awarded amount.

Sector Analysis

The defense manufacturing sector is characterized by high barriers to entry, specialized technologies, and significant government investment. Contracts for weapon systems like the MK 44 MOD 3 gun are typically awarded to established prime contractors who possess the necessary expertise and security clearances. Spending in this sub-sector, Small Arms, Ordnance, and Ordnance Accessories Manufacturing (NAICS 332994), is driven by military modernization programs and operational readiness requirements. Benchmarking this specific award against broader defense spending requires understanding the unit cost of similar advanced weapon systems, which can vary significantly based on technological sophistication and production volume.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses within 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 limits direct opportunities for small businesses to participate in this specific contract, although they may be involved in Northrop Grumman's broader supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a sole-source award, scrutiny might be higher regarding the justification and pricing. Inspector General investigations could be initiated if any irregularities or fraud are suspected. Transparency is limited by the sole-source nature, but contract award details are generally publicly available through systems like SAM.gov.

Related Government Programs

Naval Weapon Systems Procurement
Ordnance Manufacturing
Defense Contractor Awards
Sole-Source Defense Contracts
Small Arms Manufacturing

Risk Flags

Sole-source award without clear justification
Potential lack of competitive pricing
Limited transparency on cost breakdown

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 30MM MK 44 MOD 3 GUNS WITH ASSOCIATED SPARE PARTS AND 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 $8.1 million.

What is the period of performance?

Start: 2025-09-23. End: 2026-12-23.

What is the specific justification for awarding this contract on a sole-source basis to Northrop Grumman Systems Corporation?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without further documentation from the Department of the Navy, the precise reason for excluding competitive bidding remains unknown. This lack of transparency is a common concern with sole-source procurements, as it prevents public verification of the necessity for non-competitive action and can lead to questions about whether a fair price was obtained.

How does the unit cost of the MK 44 MOD 3 gun system compare to similar weapon systems, considering this is a sole-source award?

Directly comparing the unit cost of the MK 44 MOD 3 gun system is challenging due to the sole-source nature of this award and the proprietary aspects of defense technology. The total award of $8.08 million for 30 gun systems, spare parts, and tooling averages to approximately $269,333 per gun system before accounting for the additional components. In a competitive environment, the price per unit would likely be lower due to market pressures. However, without access to Northrop Grumman's cost breakdown or data on comparable systems procured competitively, a precise value-for-money assessment is difficult. Industry benchmarks for advanced naval armament vary widely, but sole-source awards often carry a premium.

What are the potential risks associated with relying on a single contractor, Northrop Grumman, for these critical weapon systems and their support?

Relying on a single contractor like Northrop Grumman for critical weapon systems presents several risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily dependent on one supplier, making it difficult and costly to switch providers in the future. Secondly, a sole-source arrangement can reduce the incentive for the contractor to innovate or improve efficiency, as they face no direct competition. Thirdly, supply chain disruptions affecting Northrop Grumman could directly impact the Navy's operational readiness, as there are no alternative suppliers readily available for these specific components. Finally, without competitive pressure, there's an increased risk of cost overruns or price increases over the life of the contract.

What is the historical spending pattern for MK 44 MOD 3 gun systems or similar ordnance by the Department of the Navy?

Historical spending data for the MK 44 MOD 3 gun system specifically, especially in the context of sole-source awards, is not readily available in the provided dataset. However, the Department of the Navy consistently procures a wide range of ordnance and weapon systems to maintain its fleet's capabilities. Analyzing past contracts for similar caliber gun systems, including their procurement quantities, award types (competitive vs. sole-source), and total costs, would be necessary to establish a spending pattern. Such an analysis would reveal trends in pricing, the prevalence of sole-source awards for specialized ordnance, and the overall budget allocated to naval armament programs over time.

What is the significance of including 'associated spare parts and special tooling' in this contract, and how does it impact the overall value?

The inclusion of 'associated spare parts and special tooling' is significant as it addresses the long-term sustainment and operational readiness of the MK 44 MOD 3 gun systems. Spare parts are crucial for maintaining the weapons in operational condition, minimizing downtime, and ensuring mission capability. Special tooling is often required for the assembly, disassembly, maintenance, and repair of complex weapon systems. While these additions increase the total contract value, they are essential for the effective utilization and longevity of the primary weapon systems. From a value perspective, having these integrated into the initial award can streamline logistics and ensure availability, potentially preventing more costly reactive procurement of parts and tools later.

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

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: $8,077,632

Exercised Options: $8,077,632

Current Obligation: $8,077,632

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0016423GJN16

IDV Type: BOA

Timeline