Northrop Grumman Awarded $11.7M for LN-251M Navigation Systems by NAVAIR
Contract Overview
Contract Amount: $11,690,152 ($11.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-04-19
End Date: 2026-04-28
Contract Duration: 739 days
Daily Burn Rate: $15.8K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: GMOD - NAVAIR (PMA 209) - LN-251M - D
Place of Performance
Location: WOODLAND HILLS, LOS ANGELES County, CALIFORNIA, 91367
Plain-Language Summary
Department of Defense obligated $11.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: GMOD - NAVAIR (PMA 209) - LN-251M - D Key points: 1. Contract awarded to a single, large business prime. 2. Focus on specialized navigation systems for aeronautical and nautical use. 3. Potential for cost overruns given Cost Plus Fixed Fee contract type. 4. Limited competition raises questions about price discovery and value.
Value Assessment
Rating: fair
The $11.7M award for the LN-251M system is difficult to benchmark without detailed cost breakdowns. The Cost Plus Fixed Fee (CPFF) structure suggests potential for costs to exceed initial estimates, impacting overall value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Without competition, the government may not have achieved the best possible price or terms, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this $11.7M award means taxpayers may be paying a premium for these navigation systems.
Public Impact
Ensures continued availability of critical navigation technology for naval aviation. Supports a major defense contractor, potentially impacting industry concentration. Limited transparency on cost drivers due to sole-source, CPFF contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- No small business participation indicated
Positive Signals
- Addresses a specific defense need
- Long-term contract duration
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on navigation instruments. Spending in this area is critical for national security but often involves complex, high-cost systems with limited vendor options.
Small Business Impact
The data indicates no small business participation in this contract. This sole-source award to a large prime contractor bypasses opportunities for small businesses to contribute to this specific procurement.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. Transparency regarding cost build-ups under the CPFF structure is crucial for accountability.
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
- Lack of competition
- Cost Plus Fixed Fee contract type
- No small business participation
- Potential for cost overruns
- Limited transparency on pricing
Tags
search-detection-navigation-guidance-aer, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. GMOD - NAVAIR (PMA 209) - LN-251M - D
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 $11.7 million.
What is the period of performance?
Start: 2024-04-19. End: 2026-04-28.
What is the justification for the sole-source award, and were alternative solutions considered?
The justification for a sole-source award typically involves unique capabilities or proprietary technology. Without competition, it's essential to verify that the government thoroughly explored all options and that Northrop Grumman's offering is truly the only viable solution to meet the specific requirements of the LN-251M system.
How will the government ensure cost control and value for money with a Cost Plus Fixed Fee contract?
Effective oversight is key. The government must diligently monitor Northrop Grumman's costs, scrutinize the fixed fee, and ensure performance metrics are met. Regular audits and detailed cost reviews are necessary to prevent cost overruns and ensure the final price reflects fair value for the delivered navigation systems.
What is the long-term strategic impact of awarding navigation system contracts solely to large, established primes?
Sole-source awards to large primes can stifle innovation and limit competition in the long run. It may reduce the incentive for developing alternative technologies or nurturing smaller, innovative companies. This can lead to higher prices and potentially slower technological advancement in critical defense areas.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 21240 BURBANK BLVD, WOODLAND HILLS, CA, 91367
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: $11,790,830
Exercised Options: $11,790,830
Current Obligation: $11,690,152
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA857619D0001
IDV Type: IDC
Timeline
Start Date: 2024-04-19
Current End Date: 2026-04-28
Potential End Date: 2026-04-28 00:00:00
Last Modified: 2025-11-13
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)