DoD Awards $10.8M for Long Term Display Systems to Northrop Grumman
Contract Overview
Contract Amount: $10,840,828 ($10.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-05-13
End Date: 2026-08-31
Contract Duration: 2,301 days
Daily Burn Rate: $4.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: LONG TERM DISPLAY - CDR-TRR
Place of Performance
Location: SYKESVILLE, CARROLL County, MARYLAND, 21784
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $10.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LONG TERM DISPLAY - CDR-TRR Key points: 1. Significant contract value of $10.8 million for specialized display systems. 2. Sole-source award to Northrop Grumman indicates limited competition. 3. Potential risk associated with single-vendor reliance for critical components. 4. Spending falls within the broader IT and Defense sectors.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar display system contracts is difficult without more specific technical details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in higher taxpayer expenditure than if the contract had been awarded through a more open bidding process.
Public Impact
Ensures continued availability of critical display technology for naval operations. Supports a major defense contractor, potentially impacting the defense industrial base. Lack of transparency in the award process may raise public scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Cost Plus Fixed Fee contract type carries inherent cost escalation risk.
- Long contract duration increases exposure to potential performance issues.
Positive Signals
- Ensures supply of essential long-term display systems.
- Supports a key defense contractor's operations.
Sector Analysis
This contract falls under the IT and Defense sectors, specifically related to specialized display manufacturing. Spending benchmarks for such niche systems are highly variable and depend on technological complexity and scale.
Small Business Impact
The awardee is Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of small business participation in this specific award, suggesting limited opportunities for small businesses.
Oversight & Accountability
The Department of the Navy is the awarding agency. Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure performance aligns with the contract's objectives and taxpayer interests.
Related Government Programs
- Fluid Power Cylinder and Actuator Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Cost Plus Fixed Fee contract is susceptible to cost overruns.
- Long contract duration increases risk of obsolescence or performance degradation.
- Sole-source award limits opportunities for innovation from other vendors.
Tags
fluid-power-cylinder-and-actuator-manufa, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LONG TERM DISPLAY - CDR-TRR
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 $10.8 million.
What is the period of performance?
Start: 2020-05-13. End: 2026-08-31.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Without specific details, it's difficult to assess if alternative competitive strategies were thoroughly explored. Agencies are generally required to justify sole-source awards to ensure fair and reasonable pricing and maximize competition where feasible.
How will the Cost Plus Fixed Fee structure be managed to mitigate potential cost overruns and ensure value for money?
Effective management of a Cost Plus Fixed Fee (CPFF) contract requires robust oversight, detailed cost tracking, and clear performance metrics. The government must actively monitor incurred costs, ensure they are reasonable and allocable, and verify that the fixed fee is earned based on performance. Regular audits and milestone reviews are essential to control spending and prevent scope creep.
What are the specific performance metrics and deliverables for these long-term display systems, and how will their effectiveness be measured?
Performance metrics for long-term display systems would likely include reliability, durability, resolution, power consumption, and operational lifespan under specified environmental conditions. Effectiveness would be measured against the mission requirements of the Department of the Navy, ensuring the displays provide clear, accurate, and timely information critical for operational success. Deliverables would include the physical systems, documentation, and potentially training or support.
Industry Classification
NAICS: Manufacturing › Other General Purpose Machinery Manufacturing › Fluid Power Cylinder and Actuator Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6833519R0033
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7301 SYKESVILLE RD, SYKESVILLE, MD, 21784
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: $10,840,828
Exercised Options: $10,840,828
Current Obligation: $10,840,828
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $550,152
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6833520G3037
IDV Type: BOA
Timeline
Start Date: 2020-05-13
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 00:00:00
Last Modified: 2025-12-18
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)