DoD Awards Northrop Grumman $14.5M for Circuit Boards, Ending in 2029
Contract Overview
Contract Amount: $14,497,803 ($14.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-12-10
End Date: 2029-12-28
Contract Duration: 1,479 days
Daily Burn Rate: $9.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR NSN 5841-01-543-6979
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $14.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DELIVERY ORDER FOR NSN 5841-01-543-6979 Key points: 1. Significant contract value of $14.5M for essential defense components. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Long contract duration (2029) may impact price competitiveness. 4. Focus on bare printed circuit board manufacturing, a critical defense sub-sector.
Value Assessment
Rating: questionable
Pricing is not available for comparison. The firm fixed price contract type suggests price certainty, but the lack of competition makes it difficult to assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This is a sole-source award, meaning competition was not sought. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition in this sole-source award may result in higher costs for the Department of Defense, impacting taxpayer funds.
Public Impact
Ensures supply of critical bare printed circuit boards for defense systems. Potential for increased costs due to sole-source nature of the award. Long-term contract provides stability for defense manufacturing capabilities. Limited transparency on pricing due to lack of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of pricing data
- Long contract duration
Positive Signals
- Critical component for defense
- Established supplier
Sector Analysis
This contract falls within the Defense sector, specifically for electronic components. Benchmarks for bare printed circuit board manufacturing vary widely based on complexity and volume, but $14.5M over nearly 5 years for a sole-source award warrants scrutiny.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature limits opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award necessitates robust oversight to ensure fair pricing and performance. The Defense Logistics Agency should actively monitor contract execution and explore future competitive opportunities.
Related Government Programs
- Bare Printed Circuit Board Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source procurement limits competition and potentially increases costs.
- Lack of available pricing data hinders value assessment.
- Long contract duration may not reflect current market prices.
- No indication of small business participation.
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 $14.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. DELIVERY ORDER FOR NSN 5841-01-543-6979
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 $14.5 million.
What is the period of performance?
Start: 2025-12-10. End: 2029-12-28.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for this sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. The agency should have thoroughly explored if competition was feasible before resorting to a sole-source procurement to ensure the best value for the government.
How does the unit cost of these bare printed circuit boards compare to industry benchmarks or previous similar contracts?
Without specific unit cost data or access to previous contract information, a direct comparison is impossible. Given the sole-source nature and the absence of competitive pricing, it is difficult to ascertain if the unit cost is reasonable. Further analysis would require detailed cost breakdowns and market research.
What measures are in place to ensure the quality and timely delivery of these critical components under a long-term, sole-source contract?
The contract type is Firm Fixed Price, which places the cost risk on the contractor. However, the Defense Logistics Agency must implement stringent quality assurance surveillance plans and performance monitoring to ensure Northrop Grumman meets delivery schedules and quality standards throughout the contract's duration.
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: $14,497,803
Exercised Options: $14,497,803
Current Obligation: $14,497,803
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: 2025-12-10
Current End Date: 2029-12-28
Potential End Date: 2029-12-28 12:12:00
Last Modified: 2026-01-08
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