DoD Awards Northrop Grumman $34.5M for Advanced Tactical Data Link Systems
Contract Overview
Contract Amount: $34,530,702 ($34.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2017-09-29
End Date: 2022-06-30
Contract Duration: 1,735 days
Daily Burn Rate: $19.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF LITENING POD COMMON OFP V4&ADVANCED TACTICAL DATA LINK (ATDL)
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $34.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF LITENING POD COMMON OFP V4&ADVANCED TACTICAL DATA LINK (ATDL) Key points: 1. Significant award to a major defense contractor. 2. Limited competition raises questions about price discovery. 3. Long contract duration (5 years) warrants close monitoring. 4. Engineering services sector sees substantial investment.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar advanced data link systems is difficult due to proprietary technology and limited public data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a sole-source or limited source justification. This limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The lack of competition may result in higher costs than if multiple vendors had bid, impacting taxpayer value.
Public Impact
Enhances military communication capabilities. Supports advanced tactical operations for the DoD. Long-term contract provides stability for the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Supports critical defense infrastructure
- Award to established contractor
Sector Analysis
This award falls within the Engineering Services sector, specifically related to defense systems integration and development. Spending in this area is often high due to the complexity and critical nature of military technology.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of small business subcontracting in the provided data.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust oversight to control costs and ensure performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Long contract duration
Tags
engineering-services, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF LITENING POD COMMON OFP V4&ADVANCED TACTICAL DATA LINK (ATDL)
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 $34.5 million.
What is the period of performance?
Start: 2017-09-29. End: 2022-06-30.
What is the justification for limiting competition on this critical data link system?
The justification for limited competition is not provided in the data. Typically, such justifications cite unique capabilities, proprietary technology, or urgent national security needs. Further investigation would be required to understand the specific reasons and assess if alternative solutions were adequately explored.
How does the Cost Plus Fixed Fee structure impact the risk of cost overruns for this contract?
Cost Plus Fixed Fee contracts shift some cost risk to the government. While the contractor is incentivized to control costs to achieve their fixed fee, the government bears the majority of the cost risk. Robust oversight and clear performance metrics are crucial to mitigate potential overruns.
What is the expected impact of this data link system on operational effectiveness for the DoD?
Advanced Tactical Data Links are crucial for real-time information sharing between platforms, enhancing situational awareness and command and control. This system likely improves the speed and accuracy of data transmission, leading to more effective joint operations and decision-making in complex combat environments.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6893616R0043
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 600 HICKS RD, ROLLING MEADOWS, IL, 60008
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: $34,734,421
Exercised Options: $34,734,421
Current Obligation: $34,530,702
Actual Outlays: $6,322,237
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $-3,523
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6893617D0017
IDV Type: IDC
Timeline
Start Date: 2017-09-29
Current End Date: 2022-06-30
Potential End Date: 2022-06-30 00:00:00
Last Modified: 2024-07-22
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)