DoD's $68M FMU 139 D/B Fuze System Contract Awarded to Northrop Grumman Under Full and Open Competition

Contract Overview

Contract Amount: $67,993,800 ($68.0M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2021-05-20

End Date: 2023-09-29

Contract Duration: 862 days

Daily Burn Rate: $78.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FMU 139 D/B FUZE SYSTEM

Place of Performance

Location: KEYSER, MINERAL County, WEST VIRGINIA, 26726

State: West Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $68.0 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: FMU 139 D/B FUZE SYSTEM Key points: 1. The contract value is $67.99 million for the FMU 139 D/B Fuze System. 2. Northrop Grumman Systems Corp is the sole awardee. 3. The contract was awarded under full and open competition. 4. The system is related to ordnance and accessories manufacturing.

Value Assessment

Rating: good

The contract was awarded via a delivery order, suggesting a competitive process for the overall requirement. Pricing is likely benchmarked against similar ordnance systems, but specific per-unit cost data is not provided.

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. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for the procurement of essential defense ordnance, with competition expected to ensure reasonable pricing.

Public Impact

Ensures the availability of critical ordnance components for military operations. Supports advanced manufacturing capabilities within the defense industrial base. The procurement contributes to the readiness and effectiveness of naval forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific per-unit cost data for detailed value analysis.
  • Reliance on a single awardee for this specific delivery order.

Positive Signals

  • Awarded under full and open competition.
  • Firm fixed price contract type limits cost overrun risk.
  • Procurement supports critical defense capabilities.

Sector Analysis

This contract falls within the defense sector, specifically related to ordnance manufacturing. Spending benchmarks for similar complex ordnance systems can vary widely based on technological sophistication and quantity.

Small Business Impact

The awardee, Northrop Grumman Systems Corp, is a large defense contractor. There is no indication in the provided data that small businesses were directly involved in this specific delivery order.

Oversight & Accountability

The contract was awarded by the Department of the Navy, a component of the Department of Defense, which has established oversight mechanisms for defense procurements. The firm fixed price contract type provides some cost control.

Related Government Programs

  • Small Arms, Ordnance, and Ordnance Accessories Manufacturing
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Lack of detailed cost breakdown.
  • Limited visibility into specific performance requirements.
  • Potential for price escalation in future orders if not tightly managed.
  • No explicit mention of small business subcontracting goals.

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 $68.0 million to NORTHROP GRUMMAN SYSTEMS CORP. FMU 139 D/B FUZE SYSTEM

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 $68.0 million.

What is the period of performance?

Start: 2021-05-20. End: 2023-09-29.

What is the historical pricing trend for the FMU 139 D/B Fuze System across previous contracts or delivery orders?

Historical pricing data for the FMU 139 D/B Fuze System is not provided in this dataset. Analyzing past contract awards, including any previous delivery orders under the same basic contract or similar systems, would be necessary to establish a pricing trend. This would help determine if the current award represents a favorable price point or if costs have escalated over time.

What are the specific technical requirements and performance metrics for the FMU 139 D/B Fuze System that justify its cost?

The provided data does not detail the specific technical requirements or performance metrics of the FMU 139 D/B Fuze System. Understanding these specifications, such as reliability, safety features, compatibility with various munitions, and operational environment, is crucial for assessing the value proposition. Without this information, it's difficult to definitively link the $68 million cost to the system's capabilities and necessity.

How does the competition level for this specific delivery order compare to the overall contract vehicle it falls under?

The data indicates this delivery order was awarded under 'FULL AND OPEN COMPETITION.' However, it does not specify if the overarching contract vehicle itself was also competed on a full and open basis, or if this was a competitive task order issued against a pre-existing contract. Understanding the competition at both levels is important for assessing the overall price discovery and value achieved for the taxpayer.

Industry Classification

NAICS: ManufacturingOther Fabricated Metal Product ManufacturingSmall 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: $67,993,800

Exercised Options: $67,993,800

Current Obligation: $67,993,800

Subaward Activity

Number of Subawards: 128

Total Subaward Amount: $59,432,585

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: 2021-05-20

Current End Date: 2023-09-29

Potential End Date: 2023-09-29 00:00:00

Last Modified: 2023-02-13

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