DoD awards Northrop Grumman $18.85M contract for 424 VLSAS canisters to Lithuania
Contract Overview
Contract Amount: $18,851,235 ($18.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-26
End Date: 2027-11-26
Contract Duration: 791 days
Daily Burn Rate: $23.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS REQUIREMENT IS FOR THE PROCUREMENT OF 424 VLSAS CANISTERS IN SUPPORT OF THE GOVERNMENT OF LITHUANIA.
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442
Plain-Language Summary
Department of Defense obligated $18.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THIS REQUIREMENT IS FOR THE PROCUREMENT OF 424 VLSAS CANISTERS IN SUPPORT OF THE GOVERNMENT OF LITHUANIA. Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for VLSAS canisters. 2. Total contract value is $18.85 million. 3. The contract is for supporting the government of Lithuania. 4. The contract duration is 791 days. 5. This is a definitive contract with a firm fixed price.
Value Assessment
Rating: fair
The contract value of $18.85 million for 424 VLSAS canisters appears to be within a reasonable range, though specific per-unit cost benchmarks are not readily available for this specialized defense equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source procurement. This limits price discovery and potentially leads to higher costs compared to a competitive process.
Taxpayer Impact: Taxpayer funds are being used to procure defense equipment for an allied nation, with limited transparency on cost-effectiveness due to the lack of competition.
Public Impact
Supports U.S. foreign military sales and strengthens alliances. Procurement of critical defense equipment for a NATO ally. Potential impact on the readiness of Lithuanian defense forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to sole-source nature
Positive Signals
- Supports allied defense capabilities
- Firm fixed price contract limits cost overruns
Sector Analysis
This contract falls within the defense manufacturing sector, specifically related to explosives and missile components. Spending in this area is driven by national security needs and international commitments.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The definitive contract structure provides a framework for oversight. However, the limited competition aspect warrants scrutiny to ensure fair pricing and value for taxpayer money.
Related Government Programs
- Explosives Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Potential for price escalation
- Lack of transparency on justification for limited competition
- Reliance on a single supplier
Tags
explosives-manufacturing, department-of-defense, mn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THIS REQUIREMENT IS FOR THE PROCUREMENT OF 424 VLSAS CANISTERS IN SUPPORT OF THE GOVERNMENT OF LITHUANIA.
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 Army).
What is the total obligated amount?
The obligated amount is $18.9 million.
What is the period of performance?
Start: 2025-09-26. End: 2027-11-26.
What is the specific justification for the limited competition for these VLSAS canisters?
The justification for limited competition is not provided in the data. Typically, such justifications might include proprietary technology, unique capabilities, or urgent national security needs that only a specific contractor can meet. Further investigation would be required to understand the rationale behind this sole-source award.
How does the unit cost of these VLSAS canisters compare to similar international procurements?
Without access to comparable international procurement data for VLSAS canisters, it is difficult to establish a precise benchmark. The firm fixed price nature of the contract offers some cost control, but the lack of competition prevents a direct comparison to assess if the price is optimal.
What is the long-term strategic value of supplying these canisters to Lithuania?
Supplying VLSAS canisters to Lithuania enhances their defense capabilities, contributing to NATO's collective security and regional stability. This aligns with U.S. foreign policy objectives of supporting allies and deterring potential adversaries in Eastern Europe.
Industry Classification
NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › Explosives Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 4700 NATHAN LN N, MINNEAPOLIS, MN, 55442
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: $18,851,235
Exercised Options: $18,851,235
Current Obligation: $18,851,235
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2025-09-26
Current End Date: 2027-11-26
Potential End Date: 2027-11-26 12:11:00
Last Modified: 2025-09-26
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