DoD awards $16.2M contract for physical properties testing equipment to Northrop Grumman
Contract Overview
Contract Amount: $16,257,197 ($16.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2006-09-07
End Date: 2011-09-30
Contract Duration: 1,849 days
Daily Burn Rate: $8.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200612!500385!1700!N68335!NAVAL AIR ENGINEERING STATION !N6833506C0420 !A!N! !N! ! !20060907!20080506!005128988!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!600 HICKS RD !ROLLING MEADOW !IL!60008!65338!031!17!ROLLING MEADOWS !COOK !ILLINOIS !+000009800000!N!N!000000251000!6635!PHYSICAL PROPERTIES TESTING EQUIPMENT !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !334519!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y!1719!N68335!0001! !
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $16.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200612!500385!1700!N68335!NAVAL AIR ENGINEERING STATION !N6833506C0420 !A!N! !N! ! !20060907!20080506!005128988!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!600 HICKS RD !ROLLING MEADOW !IL!60008!65338!031!17!ROLLING MEADOWS !COOK… Key points: 1. Contract awarded to a single, large business, raising potential competition concerns. 2. The equipment is for physical properties testing, a niche but critical area for defense readiness. 3. Fixed-price contract type suggests price certainty, but the lack of competition may have inflated costs. 4. Spending is concentrated in Illinois, with potential for broader defense sector impact.
Value Assessment
Rating: questionable
The contract value of $16.2M for physical properties testing equipment appears high without competitive benchmarking. The lack of competition makes it difficult to assess if this price is reasonable compared to similar procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely resulted in a higher price than a competed contract, increasing taxpayer burden.
Public Impact
Supports critical testing capabilities for naval aviation engineering. Potential for increased costs due to lack of competitive bidding. Concentrates spending within a specific geographic region (Illinois). Impacts the defense industrial base for specialized testing equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Supports critical defense infrastructure
- Firm fixed-price contract
Sector Analysis
This contract falls under the 'Other Measuring and Controlling Device Manufacturing' sector, specifically for physical properties testing equipment. Benchmarks for this niche sector are difficult to establish without competitive data, but defense spending in specialized equipment can be substantial.
Small Business Impact
The contract was awarded to a large business, Northrop Grumman Systems Corporation, with no indication of small business participation. This suggests a missed opportunity to support small businesses in this specialized manufacturing area.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value. Further review of the justification for not competing the contract is recommended.
Related Government Programs
- Other Measuring and Controlling Device Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Sole-source award limits price discovery.
- Potential for missed small business opportunities.
- Requires strong oversight to ensure fair value.
Tags
other-measuring-and-controlling-device-m, department-of-defense, il, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200612!500385!1700!N68335!NAVAL AIR ENGINEERING STATION !N6833506C0420 !A!N! !N! ! !20060907!20080506!005128988!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!600 HICKS RD !ROLLING MEADOW !IL!60008!65338!031!17!ROLLING MEADOWS !COOK !ILLINOIS !+000009800000!N!N!000000251000!6635!PHYSICAL PROPERTIES TESTING EQUIPMENT !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !334519!E! !3! ! ! ! ! !999
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $16.3 million.
What is the period of performance?
Start: 2006-09-07. End: 2011-09-30.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions explored?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other sources. Without access to the specific contract file, it's impossible to determine the exact reason. However, exploring alternative solutions, even if ultimately deemed unsuitable, is a standard part of the procurement process to ensure best value.
How does the $16.2M price compare to industry benchmarks for similar physical properties testing equipment, considering the lack of competition?
Direct comparison is challenging due to the sole-source nature of this award. In a competitive environment, multiple bids would establish a market price. Without this, assessing value requires detailed cost analysis by the agency or comparison to highly similar, previously competed contracts, which may not exist for this specific equipment.
What is the long-term strategic value of this specific testing equipment to the Naval Air Engineering Station, and are there plans for future competitive procurements?
The strategic value lies in ensuring the reliability and performance of naval aviation systems through rigorous testing. Future competitive procurements would depend on the evolving needs of the station, technological advancements, and whether the equipment's capabilities become more standardized or widely available from multiple manufacturers.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device 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 (UEI: 967356127)
Address: 600 HICKS RD, ROLLING MEADOW, IL
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2006-09-07
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2013-08-26
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