DoD awards $25M for Laser Range Finders to Northrop Grumman, with 259 units procured
Contract Overview
Contract Amount: $25,032,702 ($25.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2017-08-18
End Date: 2020-05-29
Contract Duration: 1,015 days
Daily Burn Rate: $24.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LASER RANGE FINDER, NSN 1240-01-643-6552. QTY: 259; OPTION: 100% NOT EXERCISED AT TIME OF AWARD.
Place of Performance
Location: APOPKA, ORANGE County, FLORIDA, 32703
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $25.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LASER RANGE FINDER, NSN 1240-01-643-6552. QTY: 259; OPTION: 100% NOT EXERCISED AT TIME OF AWARD. Key points: 1. The contract for Laser Range Finders was awarded to a single, large defense contractor. 2. The procurement value is $25,032,702.24 for 259 units. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Optical Instrument and Lens Manufacturing, a specialized area within defense.
Value Assessment
Rating: fair
The per-unit cost is approximately $96,651. This appears high compared to commercial off-the-shelf laser rangefinders, which typically range from a few hundred to a few thousand dollars. Without specific technical requirements, it's difficult to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and may result in higher costs for taxpayers. The lack of competition prevents comparison with other potential suppliers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium due to the absence of competitive bidding.
Public Impact
Military personnel will receive advanced targeting equipment. The contract supports a major defense contractor and its supply chain. The high unit cost could impact the overall budget for similar equipment. Lack of competition may set a precedent for future sole-source procurements in this category.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High unit cost compared to commercial alternatives
- No small business participation noted
Positive Signals
- Procurement of essential defense equipment
- Contract awarded to a known defense supplier
Sector Analysis
The Optical Instrument and Lens Manufacturing sector is critical for defense, providing specialized equipment. Benchmarks for military-grade laser rangefinders are not readily available, but the unit cost here is significantly higher than commercial equivalents.
Small Business Impact
There is no indication of small business participation in this contract. The award went directly to a large prime contractor, Northrop Grumman Systems Corporation.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, part of the Department of Defense. Oversight would typically involve contract management and performance monitoring by the agency to ensure delivery and quality.
Related Government Programs
- Optical Instrument and Lens Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits price competition.
- High unit cost compared to commercial benchmarks.
- Potential for overpayment due to lack of competition.
- No small business participation identified.
- Lack of transparency regarding specific technical requirements driving cost.
Tags
optical-instrument-and-lens-manufacturin, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LASER RANGE FINDER, NSN 1240-01-643-6552. QTY: 259; OPTION: 100% NOT EXERCISED AT TIME OF AWARD.
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 $25.0 million.
What is the period of performance?
Start: 2017-08-18. End: 2020-05-29.
What specific technical requirements justify the high unit cost of these laser rangefinders compared to commercial options?
The significant price difference suggests these may be highly specialized, ruggedized, or integrated systems with unique military specifications not found in commercial products. Detailed technical documentation and justification for the sole-source award would be needed to understand the specific requirements driving the cost. Without this, it's difficult to ascertain if the price reflects true value or a premium due to lack of competition.
What are the risks associated with awarding a sole-source contract for this type of equipment?
The primary risk is paying an inflated price due to the absence of competitive pressure. There's also a risk of reduced innovation and a lack of incentive for the contractor to improve efficiency or offer better value over time. Furthermore, it limits the government's ability to explore alternative solutions or suppliers that might offer better performance or lower costs.
How effective is this procurement in meeting the Department of Defense's needs for laser rangefinders?
Effectiveness hinges on whether the procured laser rangefinders meet the intended operational requirements and perform as expected. While the contract was awarded, the lack of competition and potentially high unit cost raise questions about the overall value and efficiency of this specific procurement method. Further analysis of performance metrics and user feedback would be necessary to fully assess effectiveness.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Optical Instrument and Lens Manufacturing
Product/Service Code: FIRE CONTROL EQPT.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: SPRDL116R0045
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2787 S ORANGE BLOSSOM TRL, APOPKA, FL, 32703
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: $25,032,702
Exercised Options: $25,032,702
Current Obligation: $25,032,702
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-08-18
Current End Date: 2020-05-29
Potential End Date: 2020-05-29 12:05:00
Last Modified: 2019-12-17
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