DoD's $73.5M contract for system configurations awarded to Northrop Grumman, lacking competition
Contract Overview
Contract Amount: $73,468,178 ($73.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-02-24
End Date: 2022-11-30
Contract Duration: 1,010 days
Daily Burn Rate: $72.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SYSTEM CONFIGURATION SETS
Place of Performance
Location: WOODLAND HILLS, LOS ANGELES County, CALIFORNIA, 91367
Plain-Language Summary
Department of Defense obligated $73.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SYSTEM CONFIGURATION SETS Key points: 1. Significant contract value of $73.5 million. 2. Sole-source award to Northrop Grumman Systems Corporation. 3. High risk due to lack of competition and cost-plus contract type. 4. Sector is Defense, specifically Navigation and Guidance Systems.
Value Assessment
Rating: questionable
The contract is Cost Plus Fixed Fee, which can lead to higher costs without strong oversight. Benchmarking is difficult without competitive data, but the lack of competition suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a sole-source award, meaning there was no competition. This significantly limits price discovery and potentially inflates costs for taxpayers.
Taxpayer Impact: The lack of competition and cost-plus nature of the contract raise concerns about taxpayer value for money.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on a single contractor for critical system configurations. Potential for cost overruns given the contract type and sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
- Potential for cost overruns
Positive Signals
- Contract awarded to a known defense contractor
- Addresses critical system needs for the Navy
Sector Analysis
This contract falls within the Defense sector, specifically manufacturing instruments for search, detection, navigation, guidance, and aeronautical/nautical systems. Spending in this sub-sector can be high due to specialized technology and R&D requirements.
Small Business Impact
This contract was awarded to a large corporation, Northrop Grumman Systems Corporation. There is no indication of small business participation in this specific award.
Oversight & Accountability
The sole-source nature and cost-plus contract type necessitate robust oversight from the Department of the Navy to ensure cost control and prevent waste, fraud, and abuse.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Limited transparency
- No small business participation indicated
Tags
search-detection-navigation-guidance-aer, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SYSTEM CONFIGURATION SETS
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 $73.5 million.
What is the period of performance?
Start: 2020-02-24. End: 2022-11-30.
What specific justification was provided for awarding this contract on a sole-source basis?
The provided data does not include the specific justification for the sole-source award. Typically, such justifications would cite reasons like unique capabilities, urgent needs, or lack of alternative sources. Without this information, it's difficult to fully assess the necessity of bypassing competition.
How are cost efficiencies being ensured under this Cost Plus Fixed Fee (CPFF) contract?
CPFF contracts aim to control costs by establishing a fixed fee for the contractor's effort, in addition to reimbursing allowable costs. However, the effectiveness relies heavily on the government's ability to monitor and control the direct and indirect costs incurred by the contractor. Robust auditing and performance metrics are crucial.
What is the potential impact on future technological advancements if competition is consistently avoided in this area?
Consistently avoiding competition can stifle innovation by reducing the incentive for contractors to develop novel, cost-effective solutions. It may also lead to vendor lock-in and prevent the government from benefiting from potentially superior technologies or lower prices offered by emerging competitors.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6893613R0055
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 21240 BURBANK BLVD, WOODLAND HILLS, CA, 91367
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: $75,741,714
Exercised Options: $75,741,714
Current Obligation: $73,468,178
Actual Outlays: $28,535,408
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $2,428,700
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6893615D0013
IDV Type: IDC
Timeline
Start Date: 2020-02-24
Current End Date: 2022-11-30
Potential End Date: 2022-11-30 00:00:00
Last Modified: 2024-05-08
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)