DoD's $107M Growler AEA Block II Phase 2 Head Start Hardware/Software Development Awarded to Northrop Grumman

Contract Overview

Contract Amount: $10,721,830 ($10.7M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2025-11-06

End Date: 2026-05-05

Contract Duration: 180 days

Daily Burn Rate: $59.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AIRBORNE ELECTRONIC ATTACK (AEA) GROWLER BLOCK II PHASE 2 HEAD START HARDWARE AND SOFTWARE/FIRMWARE DEVELOPMENT

Place of Performance

Location: POINT MUGU NAWC, VENTURA County, CALIFORNIA, 93042

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $10.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: AIRBORNE ELECTRONIC ATTACK (AEA) GROWLER BLOCK II PHASE 2 HEAD START HARDWARE AND SOFTWARE/FIRMWARE DEVELOPMENT Key points: 1. This contract focuses on critical hardware and software development for the Airborne Electronic Attack (AEA) system. 2. Northrop Grumman is the sole awardee, indicating a lack of competition for this specific phase. 3. The 'Head Start' designation suggests an accelerated timeline or early-stage development, potentially increasing risk. 4. Engineering Services (NAICS 541330) is the relevant sector for this type of specialized development.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee (CPFF), which offers less price certainty than fixed-price contracts. Without a benchmark or more details on the scope, assessing value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning there was no open competition. This limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The sole-source nature of this award raises concerns about taxpayer value, as competitive bidding could have potentially secured a lower price.

Public Impact

Enhances critical electronic warfare capabilities for naval aviation. Supports the development of advanced hardware and software for the Growler aircraft. Potential for long-term sustainment and upgrade contracts for Northrop Grumman. Impacts the technological edge of U.S. naval forces in electronic attack.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Cost-plus contract type offers less cost certainty.
Potential for scope creep in development phases.
Lack of readily available benchmark data for similar contracts.

Positive Signals

Addresses a critical defense capability.
Awarded to an experienced contractor in the AEA domain.
Supports ongoing modernization of naval aviation assets.

Sector Analysis

This contract falls under Engineering Services, a sector often characterized by specialized expertise and R&D. Spending in this area is crucial for maintaining technological superiority but requires careful oversight due to its complexity and potential for cost overruns.

Small Business Impact

The awardee is Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award, which is common for highly specialized sole-source defense contracts.

Oversight & Accountability

The sole-source nature necessitates robust oversight from the Department of the Navy to ensure cost control and adherence to the contract's objectives. Regular reviews of cost proposals and performance metrics are essential.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competitive pricing.
Cost Plus Fixed Fee contract type increases cost risk.
Potential for scope creep in early development phases.
Lack of transparency in price justification due to sole-source nature.
Dependence on a single contractor for critical technology development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. AIRBORNE ELECTRONIC ATTACK (AEA) GROWLER BLOCK II PHASE 2 HEAD START HARDWARE AND SOFTWARE/FIRMWARE DEVELOPMENT

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 $10.7 million.

What is the period of performance?

Start: 2025-11-06. End: 2026-05-05.

What specific technical advancements does this 'Head Start' phase aim to achieve, and how do they justify the sole-source award?

The 'Head Start' phase likely focuses on foundational research, prototyping, or early-stage development of novel hardware and software components for the AEA system. Justification for a sole-source award would typically hinge on the unique intellectual property, specialized expertise, or prior development work already completed by Northrop Grumman, making it impractical or excessively costly to transition to another vendor at this stage.

Given the CPFF contract type and sole-source nature, what mechanisms are in place to mitigate cost overruns and ensure fair pricing?

The Department of the Navy must implement stringent cost monitoring and control measures. This includes detailed review of Northrop Grumman's cost proposals, establishing realistic cost ceilings, and requiring regular performance reports. Incentive clauses, if applicable, could also be used to encourage cost efficiency. However, the inherent limitations of CPFF and sole-source awards mean that proactive government oversight is paramount.

How does this development phase align with the broader strategic goals for the AEA Growler program, and what are the long-term implications for its effectiveness?

This phase is critical for advancing the AEA Growler's capabilities, ensuring it remains effective against evolving threats. Successful completion will likely lead to improved electronic attack performance, enhanced survivability, and expanded operational envelopes. The long-term implications include maintaining a technological advantage in electronic warfare, supporting fleet readiness, and potentially influencing future defense spending priorities for similar systems.

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: N6893616R0069

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 925 OYSTER BAY RD, BETHPAGE, NY, 11714

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,375,887

Exercised Options: $29,375,887

Current Obligation: $10,721,830

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6893619D0007

IDV Type: IDC

Timeline