DoD awards $2.89B contract to Northrop Grumman for miscellaneous electrical equipment, lacking competition
Contract Overview
Contract Amount: $28,937,278 ($28.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2007-08-02
End Date: 2013-08-02
Contract Duration: 2,192 days
Daily Burn Rate: $13.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CAR
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805, UNITED STATES OF AMERICA
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $28.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CAR Key points: 1. Significant contract value of $2.89 billion. 2. No competition was identified for this award. 3. Long contract duration of 6 years. 4. Awarded by the Department of Defense to a major defense contractor.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive benchmarking, assessing the value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for the goods or services provided.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long-term nature of the contract raises questions about ongoing necessity and potential for price escalation. Lack of transparency in the procurement process due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Long contract duration
- High contract value
Positive Signals
- Awarded to a known entity (Northrop Grumman)
Sector Analysis
This contract falls under the Miscellaneous Electrical Equipment and Component Manufacturing sector. Spending in this area can vary widely based on defense needs and technological advancements. Benchmarks are difficult without specific product details.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. The Department of Defense should provide justification for the lack of competition.
Related Government Programs
- All Other Miscellaneous Electrical Equipment and Component Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for overpayment due to sole-source award.
- Risk of cost overruns with Cost Plus Fixed Fee contract.
- Lack of transparency in the procurement process.
- Long contract duration may not reflect current needs or technological advancements.
Tags
all-other-miscellaneous-electrical-equip, department-of-defense, al, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CAR
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 $28.9 million.
What is the period of performance?
Start: 2007-08-02. End: 2013-08-02.
What specific electrical equipment or components were procured under this contract, and why was competition deemed impractical?
The contract details do not specify the exact nature of the 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' items. A thorough review by the Department of Defense is needed to justify the sole-source award, potentially citing national security, unique capabilities, or lack of viable alternatives. Without this information, assessing value is challenging.
What measures are in place to control costs and ensure efficiency given the Cost Plus Fixed Fee structure and lack of competition?
With a Cost Plus Fixed Fee contract and no competition, robust oversight is critical. The Department of Defense must implement stringent cost monitoring, performance metrics, and regular audits to prevent cost overruns and ensure the contractor is delivering effectively. Clear milestones and deliverables should be established and tracked.
How does this $2.89 billion expenditure align with the Department of the Army's strategic priorities and budget?
The significant value of this contract suggests it supports critical operational needs for the Department of the Army. However, without knowing the specific equipment and its strategic importance, it's difficult to assess alignment. A review of the Army's procurement strategy and budget allocation would be necessary to confirm its relevance and justify the expenditure.
Industry Classification
NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q07R0053
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 213 WYNN DR, HUNTSVILLE, AL, 35805
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,937,278
Exercised Options: $28,937,278
Current Obligation: $28,937,278
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-08-02
Current End Date: 2013-08-02
Potential End Date: 2013-08-02 00:00:00
Last Modified: 2015-11-23
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