DoD's $22.9M H-1 System Configuration Sets Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $22,895,916 ($22.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-01-24
End Date: 2024-09-30
Contract Duration: 615 days
Daily Burn Rate: $37.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: H-1 SYSTEM CONFIGURATION SETS
Place of Performance
Location: WOODLAND HILLS, LOS ANGELES County, CALIFORNIA, 91367
Plain-Language Summary
Department of Defense obligated $22.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: H-1 SYSTEM CONFIGURATION SETS Key points: 1. Significant contract value of $22.9 million for system configuration sets. 2. Sole-source award to Northrop Grumman raises questions about competition. 3. Potential risk associated with limited competition and cost-plus contract type. 4. Spending falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs if not managed carefully. Benchmarking is difficult without more specific details on the configuration sets and their complexity compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. The lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition may result in taxpayers paying more than necessary for these system configuration sets.
Public Impact
Impacts the Department of the Navy's operational capabilities through specialized system configurations. Potential for cost overruns due to the CPFF contract type and lack of competition. Highlights reliance on a single contractor for critical system components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Supports critical defense systems
- Long-term contract duration
Sector Analysis
This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for maintaining advanced military technology and operational readiness.
Small Business Impact
The contract was awarded to Northrop Grumman, a large defense contractor. There is no indication of small business participation in this specific award, suggesting limited opportunities for smaller enterprises.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost control and adherence to contract terms. Accountability for performance and cost management will be critical given the CPFF structure.
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 may lead to inflated prices.
- Cost-plus contract type increases risk of cost overruns.
- Potential for vendor lock-in due to sole-source award.
- Limited transparency into specific system configurations and their necessity.
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 $22.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. H-1 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 $22.9 million.
What is the period of performance?
Start: 2023-01-24. End: 2024-09-30.
What specific system configuration sets are being procured, and what is their criticality to current naval operations?
The specific system configuration sets are not detailed in the provided data. However, given the contractor and the sector, they likely relate to advanced navigation, detection, or guidance systems for naval platforms. Their criticality would depend on the specific systems they support, potentially impacting surveillance, targeting, or operational command and control capabilities.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award is not provided. Typically, such awards are made when only one source can provide the required goods or services due to unique capabilities, proprietary technology, or urgent needs. Without competition, ensuring fair and reasonable pricing relies heavily on robust government cost analysis and negotiation.
How will the government monitor costs and performance under this Cost Plus Fixed Fee contract to mitigate potential overruns?
The government will likely employ stringent oversight mechanisms, including regular performance reviews, detailed cost tracking, and audits. Contract specialists will need to closely monitor expenditures against the fixed fee and ensure that all costs incurred are reasonable, allocable, and allowable according to the contract terms and federal acquisition regulations.
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: N6893621R0009
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: $28,261,503
Exercised Options: $28,261,503
Current Obligation: $22,895,916
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $1,590,627
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6893622D0028
IDV Type: IDC
Timeline
Start Date: 2023-01-24
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-10-14
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