DoD Awards Northrop Grumman $19.4M for AN/ALQ-218/240 System Support
Contract Overview
Contract Amount: $19,445,819 ($19.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-12-06
End Date: 2026-12-05
Contract Duration: 729 days
Daily Burn Rate: $26.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING, LOGISTIC, AND REPAIR SUPPORT FOR AN/ALQ-218 AND AN/ALQ-240 SYSTEMS.
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $19.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ENGINEERING, LOGISTIC, AND REPAIR SUPPORT FOR AN/ALQ-218 AND AN/ALQ-240 SYSTEMS. Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on specialized electronic warfare system support. 3. Long-term contract duration of 729 days. 4. High value for niche engineering and repair services.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type allows for cost reimbursement plus a fixed fee, which can lead to cost overruns if not managed carefully. The awarded amount is significant for specialized support.
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 compared to a competitive environment.
Taxpayer Impact: Taxpayer funds are allocated without competitive bidding, potentially resulting in a less optimal price for the services rendered.
Public Impact
Supports critical electronic warfare capabilities for naval aviation. Ensures operational readiness of advanced sensor systems. Funds a major defense contractor for specialized technical services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Cost-plus contract type carries inherent risk of cost escalation.
- Lack of small business participation noted.
Positive Signals
- Supports critical national defense systems.
- Long-term contract provides stability for specialized services.
Sector Analysis
This contract falls within the defense sector, specifically focusing on the manufacturing and support of complex electronic warfare systems. Spending benchmarks for such specialized engineering and repair services are typically high due to the technical expertise and proprietary nature of the systems.
Small Business Impact
The contract data indicates no small business participation. This is common for highly specialized sole-source contracts awarded to large prime contractors, potentially limiting opportunities for smaller, innovative firms in this niche.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the fixed fee is reasonable and that costs are managed effectively throughout the contract period. Robust performance metrics are essential.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award
- Cost-plus contract type
- No small business participation
- High value for specialized services
Tags
search-detection-navigation-guidance-aer, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ENGINEERING, LOGISTIC, AND REPAIR SUPPORT FOR AN/ALQ-218 AND AN/ALQ-240 SYSTEMS.
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 $19.4 million.
What is the period of performance?
Start: 2024-12-06. End: 2026-12-05.
What is the justification for the sole-source award, and was a full and open competition truly not feasible?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For specialized systems like the AN/ALQ-218/240, the original equipment manufacturer or a highly specialized entity may possess the necessary technical data and expertise. However, a thorough review should confirm that no other qualified sources exist or could be developed within a reasonable timeframe.
How will the government ensure cost control and value for money under this Cost Plus Fixed Fee contract?
Effective cost control under a CPFF contract relies on stringent government oversight, detailed cost tracking, and performance monitoring. The government should establish clear milestones, review incurred costs regularly, and ensure the fixed fee remains appropriate for the scope of work. Benchmarking against similar support contracts and negotiating fair labor rates are also crucial to achieving value for taxpayer money.
What is the long-term strategy for ensuring competitive sourcing for future support of these systems?
The long-term strategy should involve market research to identify potential competitors and foster competition where feasible. This could include breaking down future requirements into smaller, more accessible contract vehicles, encouraging technology refresh initiatives that allow new entrants, or developing government in-house capabilities. Proactive planning is key to avoiding perpetual sole-source awards.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1580B W NURSERY RD, LINTHICUM HEIGHTS, MD, 21090
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: $27,216,224
Exercised Options: $26,972,074
Current Obligation: $19,445,819
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N0016421GWS42
IDV Type: BOA
Timeline
Start Date: 2024-12-06
Current End Date: 2026-12-05
Potential End Date: 2026-12-05 00:00:00
Last Modified: 2026-01-14
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