DoD Awards $25M for B-1 LOA RADAR to Northrop Grumman, Sole-Source Contract
Contract Overview
Contract Amount: $25,068,426 ($25.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-12-19
End Date: 2025-12-31
Contract Duration: 377 days
Daily Burn Rate: $66.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: B-1 LOA RADAR
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $25.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: B-1 LOA RADAR Key points: 1. Significant award for critical radar system components. 2. Sole-source award raises questions about price competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Sector: Defense, specifically electronic component manufacturing.
Value Assessment
Rating: questionable
The contract's value of $25M for radar components is substantial. Without competitive pricing data, it's difficult to assess if this represents fair value. The benchmark of $6,649 per unit is high, suggesting potential overpricing.
Cost Per Unit: $6,649
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and negotiation leverage for the government, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these critical radar components.
Public Impact
Ensures continued operational readiness for B-1 bombers. Supports advanced radar technology crucial for defense. Potential impact on future defense procurement strategies if sole-source awards become common.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High per-unit cost benchmark
Positive Signals
- Critical defense system support
- Long-term contract duration
Sector Analysis
This award falls within the Defense sector, specifically supporting electronic component manufacturing for military aircraft. Spending in this area is critical for maintaining national security and technological superiority.
Small Business Impact
The awardee is Northrop Grumman Systems Corporation, a large business. There is no indication that small businesses were involved in this specific contract, which is common for large sole-source defense procurements.
Oversight & Accountability
The Department of Defense and the Defense Logistics Agency are responsible for oversight. The sole-source nature of this award warrants close scrutiny to ensure fair pricing and effective use of funds.
Related Government Programs
- Other Electronic Component Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits price competition.
- High per-unit cost benchmark.
- Lack of transparency in pricing justification.
- Potential for cost overruns without competitive pressure.
Tags
other-electronic-component-manufacturing, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. B-1 LOA RADAR
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 $25.1 million.
What is the period of performance?
Start: 2024-12-19. End: 2025-12-31.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met through competition. The government should have thoroughly explored if any other vendors could provide comparable radar components or if the existing vendor's technology was truly indispensable. Without this information, it's hard to confirm if this was the most cost-effective approach.
How does the $6,649 per-unit cost compare to similar radar components or previous procurements?
The per-unit cost of $6,649 appears high, especially for electronic components. A thorough benchmark analysis against similar commercial or military radar components, as well as historical pricing for this specific system, is crucial. If this price is significantly higher than comparable items, it indicates a potential overpayment and warrants further investigation into the cost drivers.
What measures are in place to ensure the effectiveness and reliability of the B-1 LOA RADAR system under this contract?
Given the critical nature of radar systems for military aircraft, robust quality assurance and testing protocols are essential. The contract should include clear performance standards, acceptance criteria, and warranties. The Defense Logistics Agency's oversight should focus on ensuring that Northrop Grumman meets these specifications to guarantee the system's effectiveness and the taxpayer's investment.
Industry Classification
NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7575 COLSHIRE DR TOWER 1, MCLEAN, VA, 22102
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: $25,068,426
Exercised Options: $25,068,426
Current Obligation: $25,068,426
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $747,907
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SPRHA124D0001
IDV Type: IDC
Timeline
Start Date: 2024-12-19
Current End Date: 2025-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2026-03-25
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