DoD Awards $28.7M to Northrop Grumman for Huntsman Secure Network Radio Hardware
Contract Overview
Contract Amount: $28,669,559 ($28.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2019-08-30
End Date: 2021-09-30
Contract Duration: 762 days
Daily Burn Rate: $37.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HARDWARE FOR THE HUNTSMAN SECURE NETWORK RADIO.
Place of Performance
Location: MADISON, MADISON County, ALABAMA, 35756
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $28.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: HARDWARE FOR THE HUNTSMAN SECURE NETWORK RADIO. Key points: 1. Significant contract value for specialized hardware. 2. Sole-source award raises questions about competition and pricing. 3. Potential for cost overruns due to lack of competitive pressure. 4. IT hardware procurement within the Defense sector.
Value Assessment
Rating: questionable
The contract value of $28.7 million for computer systems design services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar secure network hardware contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying a premium for this hardware.
Public Impact
Ensures critical communication hardware for military operations. Lack of transparency in pricing due to sole-source nature. Potential impact on future defense hardware procurement strategies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Critical defense hardware acquisition
- Supports secure communication networks
Sector Analysis
This contract falls under IT hardware procurement within the Defense sector. Spending benchmarks for specialized secure network hardware can vary widely, but sole-source awards often exceed competitive benchmarks.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both 'ss' and 'sb' are false. This represents a missed opportunity for small business participation in defense contracting.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is fair and reasonable, and that the hardware meets all specified requirements.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for inflated pricing.
- Lack of transparency in cost justification.
- No small business participation.
Tags
computer-systems-design-services, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. HARDWARE FOR THE HUNTSMAN SECURE NETWORK RADIO.
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 $28.7 million.
What is the period of performance?
Start: 2019-08-30. End: 2021-09-30.
What is the justification for the sole-source award of this contract?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further details, it's presumed the Department of the Army determined Northrop Grumman was the only viable provider for the Huntsman Secure Network Radio hardware at the time of award.
How does the lack of competition impact the risk of cost overruns?
A lack of competition significantly increases the risk of cost overruns. Without competing bids, the contractor faces less pressure to optimize costs, potentially leading to inflated pricing and higher expenditures than if the contract had been competed.
What is the long-term effectiveness of procuring critical hardware via sole-source contracts?
While sole-source contracts can ensure timely acquisition of critical or unique items, their long-term effectiveness is questionable if they become a routine practice. Over-reliance can stifle innovation, reduce market competition, and lead to sustained higher costs for the government.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
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: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,669,559
Exercised Options: $28,669,559
Current Obligation: $28,669,559
Subaward Activity
Number of Subawards: 325
Total Subaward Amount: $207,008,857
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W31P4Q19D0041
IDV Type: IDC
Timeline
Start Date: 2019-08-30
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2025-04-24
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