DoD Awards $14.7M for C Processors to Northrop Grumman, Lacking Competition
Contract Overview
Contract Amount: $14,673,890 ($14.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-29
End Date: 2029-03-30
Contract Duration: 1,278 days
Daily Burn Rate: $11.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER ON CONTRACT SPRBL1-22-D-0008 FOR C PROCESSORS. NSN: 5841-01-543-6979 COMMODITY NAME: C PROCESSOR
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $14.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DELIVERY ORDER ON CONTRACT SPRBL1-22-D-0008 FOR C PROCESSORS. NSN: 5841-01-543-6979 COMMODITY NAME: C PROCESSOR Key points: 1. Significant award for specialized C Processors, a critical component. 2. Sole-source award to Northrop Grumman raises questions about price discovery. 3. Long contract duration (2029) suggests a need for ongoing supply. 4. Lack of small business participation noted.
Value Assessment
Rating: questionable
The contract value of $14.7M is for a delivery order, making direct comparison difficult without knowing the quantity. However, the lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning competition was not sought. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.
Public Impact
Ensures continued supply of critical C Processors for defense applications. Potential for higher costs due to lack of competitive bidding. Limited transparency into the pricing justification. Northrop Grumman, a major defense contractor, is the sole awardee.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- No small business participation
Positive Signals
- Ensures supply of critical component
Sector Analysis
This award falls under the Defense sector, specifically related to electronic components. Spending benchmarks for specialized processors can vary widely based on technology and volume.
Small Business Impact
The contract explicitly states no small business participation. This indicates that opportunities for small businesses in this specific procurement were not pursued or available.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and justification. The Defense Logistics Agency should provide detailed rationale for the lack of competition.
Related Government Programs
- Bare Printed Circuit Board Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competitive bidding.
- Long contract duration may not reflect evolving technology.
- No small business participation.
- Lack of transparency on unit cost and quantity.
Tags
bare-printed-circuit-board-manufacturing, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. DELIVERY ORDER ON CONTRACT SPRBL1-22-D-0008 FOR C PROCESSORS. NSN: 5841-01-543-6979 COMMODITY NAME: C PROCESSOR
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $14.7 million.
What is the period of performance?
Start: 2025-09-29. End: 2029-03-30.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing without competition?
The justification for a sole-source award typically involves factors like unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. The Defense Logistics Agency should have conducted a price analysis, potentially using historical data, cost breakdowns, or market research, to determine if the negotiated price was fair and reasonable, even without competitive bids.
What is the specific quantity and unit cost of the C Processors being procured under this delivery order?
The provided data does not specify the quantity or unit cost for the C Processors. The total award amount is $14.7 million, but without the quantity, a per-unit cost benchmark cannot be established. This information is crucial for assessing value for money and identifying potential overpricing.
What is the expected impact of this sole-source contract on future competition for similar C Processors?
A sole-source award can stifle future competition by reinforcing the incumbent's market position and potentially creating barriers to entry for others. Without proactive measures to encourage competition in subsequent procurements, this contract could set a precedent, limiting future opportunities for other suppliers and potentially leading to sustained higher prices.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Bare Printed Circuit Board Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
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: $14,673,890
Exercised Options: $14,673,890
Current Obligation: $14,673,890
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRBL122D0008
IDV Type: IDC
Timeline
Start Date: 2025-09-29
Current End Date: 2029-03-30
Potential End Date: 2029-03-30 00:00:00
Last Modified: 2025-09-29
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