DoD Awards Northrop Grumman $180M for Explosive Storage Magazines, Construction Sector
Contract Overview
Contract Amount: $18,086,522 ($18.1M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2020-09-28
End Date: 2026-08-28
Contract Duration: 2,160 days
Daily Burn Rate: $8.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: EXPLOSIVE STORAGE MAGAZINES ABL
Place of Performance
Location: BURLINGTON, MINERAL County, WEST VIRGINIA, 26710
Plain-Language Summary
Department of Defense obligated $18.1 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: EXPLOSIVE STORAGE MAGAZINES ABL Key points: 1. Significant contract value awarded to a major defense contractor. 2. Limited competition raises questions about price discovery and value for money. 3. Long contract duration (2020-2026) may not reflect current market conditions. 4. Construction sector spending benchmark needs further analysis for this specific asset type.
Value Assessment
Rating: questionable
The contract value of $180.8M for explosive storage magazines is substantial. Without comparable contract data or detailed cost breakdowns, it's difficult to assess if this represents excellent value. The lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED,' indicating a limited competition approach. This significantly restricts price discovery and may lead to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition likely results in a higher cost to taxpayers than if multiple vendors had bid on the project.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long-term nature of the contract could lock the government into potentially suboptimal pricing. Ensuring the quality and safety of explosive storage magazines is critical for military operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Potential for cost overruns
Positive Signals
- Awarded to a known defense contractor
- Addresses critical military infrastructure needs
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project scope and material costs. Benchmarking requires specific data on similar specialized construction projects.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as Northrop Grumman Systems Corp is a large corporation. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for limited competition was sound and that the pricing is reasonable. Post-award reviews should focus on performance and cost control.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Long contract duration could result in outdated pricing.
- Potential for cost overruns if not closely managed.
- Limited transparency on specific cost components.
- No clear indication of small business participation.
Tags
commercial-and-institutional-building-co, department-of-defense, wv, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.1 million to NORTHROP GRUMMAN SYSTEMS CORP. EXPLOSIVE STORAGE MAGAZINES ABL
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $18.1 million.
What is the period of performance?
Start: 2020-09-28. End: 2026-08-28.
What was the specific justification for not competing this contract, and were alternative solutions considered?
The justification for not competing this contract is not provided in the data. Typically, reasons for sole-sourcing or limited competition include urgent needs, unique capabilities, or lack of market availability. A thorough review would examine the documented rationale and confirm that no viable competitive alternatives existed at the time of award.
How does the cost per unit or square footage of these magazines compare to industry benchmarks for similar facilities?
Without specific cost breakdowns or detailed specifications for the explosive storage magazines, a direct per-unit or per-square-foot cost comparison is not possible. The 'br' value of 8373 might represent a benchmark or internal estimate, but its context and applicability to current market rates are unclear. Further analysis would require detailed project cost data.
What are the performance metrics and quality assurance measures in place to ensure the effectiveness and safety of these magazines?
The provided data does not detail the specific performance metrics or quality assurance measures for the explosive storage magazines. Given the critical nature of storing explosives, robust oversight, adherence to stringent safety standards (e.g., DoD, ATF regulations), and regular inspections are essential. The contract type (FIRM FIXED PRICE) implies the contractor is responsible for meeting defined specifications.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N4008519R9162
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 210 STATE ROUTE 956, KEYSER, WV, 26726
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: $18,086,522
Exercised Options: $18,086,522
Current Obligation: $18,086,522
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-09-28
Current End Date: 2026-08-28
Potential End Date: 2026-08-28 00:00:00
Last Modified: 2025-10-28
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