DoD's $52M contract for Small Arms, Ordnance Accessories Manufacturing awarded to Northrop Grumman
Contract Overview
Contract Amount: $51,976,291 ($52.0M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2019-05-28
End Date: 2022-10-03
Contract Duration: 1,224 days
Daily Burn Rate: $42.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FUNDING IN SUPPORT OF CLIN 0101
Place of Performance
Location: KEYSER, MINERAL County, WEST VIRGINIA, 26726
Plain-Language Summary
Department of Defense obligated $52.0 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: FUNDING IN SUPPORT OF CLIN 0101 Key points: 1. Contract awarded to a single, large defense contractor. 2. Fixed-price contract type may limit cost overruns. 3. Long duration (1224 days) suggests a significant, ongoing need. 4. No small business participation noted.
Value Assessment
Rating: fair
The award amount of $51.9M over approximately 3.4 years is difficult to benchmark without specific product details. However, for a large defense contractor, this amount is within a typical range for specialized manufacturing support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were likely considered. The fixed-price nature of the contract aims to ensure price discovery and cost control.
Taxpayer Impact: Taxpayer funds are being used for essential defense manufacturing, with competition intended to secure a reasonable price.
Public Impact
Supports the Department of the Navy's operational readiness. Contributes to the defense industrial base, specifically in ordnance manufacturing. Potential for job creation within the awarded company's facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Limited transparency on specific deliverables and performance metrics.
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract type.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on small arms and ordnance accessories. Spending in this area is critical for military readiness and is often characterized by high-value, specialized contracts with established defense primes.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This suggests that the prime contractor, Northrop Grumman, is handling the entire scope of work, potentially missing opportunities for subcontracting to smaller, specialized firms.
Oversight & Accountability
Awarded as a delivery order under a larger contract, oversight would likely be managed by the Department of the Navy's contracting officers. Accountability for performance and adherence to the firm fixed price terms rests with Northrop Grumman.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of small business involvement.
- Limited transparency on specific deliverables.
- No per-unit cost benchmark available for validation.
- Potential for cost creep if scope is not tightly managed despite fixed price.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, wv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.0 million to NORTHROP GRUMMAN SYSTEMS CORP. FUNDING IN SUPPORT OF CLIN 0101
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 $52.0 million.
What is the period of performance?
Start: 2019-05-28. End: 2022-10-03.
What specific ordnance accessories are being manufactured, and how do they align with current military requirements?
The specific ordnance accessories are not detailed in the provided data. Understanding the exact nature of these items is crucial for assessing their relevance to current military needs and the overall value of the contract. Further investigation into the contract's statement of work would be necessary to determine the precise items and their strategic importance.
What was the competitive landscape like during the full and open competition for this contract?
While the contract states 'full and open competition,' the provided data does not detail the number of bids received or the specific competitors. Understanding the competitive intensity is key to evaluating whether the pricing achieved truly reflects market value. A robust competition typically drives down costs and ensures the best value for the government.
How does the per-unit cost of these ordnance accessories compare to industry benchmarks or previous contracts?
A per-unit cost benchmark is not available ('cpu': 'N/A'). Without detailed product specifications and quantities, it's impossible to calculate a meaningful per-unit cost for comparison. Benchmarking would require access to the contract's detailed pricing structure and potentially data from similar procurements of comparable ordnance accessories.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0001914R0025
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 210 STATE ROUTE 956, ROCKET CENTER, 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: $51,976,291
Exercised Options: $51,976,291
Current Obligation: $51,976,291
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $1,614,823
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0001915D0030
IDV Type: IDC
Timeline
Start Date: 2019-05-28
Current End Date: 2022-10-03
Potential End Date: 2022-10-03 00:00:00
Last Modified: 2022-11-29
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