DoD awards $46.5M contract for special ammunition and weapons systems to Northrop Grumman
Contract Overview
Contract Amount: $46,549,900 ($46.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-02-07
End Date: 2024-11-01
Contract Duration: 268 days
Daily Burn Rate: $173.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SPECIAL AMMUNITION AND WEAPONS SYSTEMS REQUIREMENTS
Place of Performance
Location: RADFORD, RADFORD CITY County, VIRGINIA, 24141
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $46.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SPECIAL AMMUNITION AND WEAPONS SYSTEMS REQUIREMENTS Key points: 1. Contract value represents a significant investment in specialized ordnance capabilities. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract duration of 268 days indicates a focused, short-term requirement. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Northrop Grumman's selection highlights its established role in defense manufacturing. 6. The specific NAICS code points to a niche within the broader ammunition manufacturing sector.
Value Assessment
Rating: good
The contract value of $46.5 million for specialized ammunition and weapons systems appears reasonable given the nature of defense procurement. Benchmarking against similar, complex ordnance systems is challenging without more specific technical details. However, the firm fixed-price structure suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator of value if the contractor manages performance effectively. The relatively short duration of the delivery order (268 days) implies a specific, time-bound need rather than a long-term sustainment effort.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bidders identified, the competition level appears moderate. This suggests that while multiple companies were aware of and potentially interested in the requirement, the market for this specific type of specialized ammunition and weapons system may be concentrated among a few key players. The presence of competition, even if limited to two bidders, generally supports price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: Full and open competition, even with a limited number of bidders, provides taxpayers with assurance that the government sought the best possible price and value. It helps prevent sole-source situations where prices could be inflated due to lack of alternatives.
Public Impact
The primary beneficiaries are the U.S. Army warfighters who will receive advanced ammunition and weapons systems. The contract will deliver specialized ordnance critical for specific combat or training scenarios. Geographic impact is likely concentrated around military installations where these systems are deployed or utilized. Workforce implications may include specialized manufacturing roles at Northrop Grumman and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition if only two bidders participated in a specialized market.
- Reliance on a single contractor for critical, specialized ordnance could pose supply chain risks.
- The specific nature of 'special ammunition' may involve unique safety or handling protocols that require rigorous oversight.
Positive Signals
- Full and open competition process, even with few bidders, is a positive signal.
- Firm fixed-price contract type transfers cost risk to the contractor.
- Northrop Grumman is a well-established defense contractor with a track record in weapons systems.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on ammunition (except small arms) manufacturing. The market for specialized ordnance is often characterized by high barriers to entry due to technological complexity, stringent quality requirements, and long development cycles. Major defense contractors like Northrop Grumman dominate this space. Spending in this category is driven by evolving military requirements, technological advancements, and geopolitical factors. Comparable spending benchmarks are difficult without knowing the exact nature of the 'special ammunition and weapons systems.'
Small Business Impact
The data indicates that small business participation was not a primary focus for this specific contract, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting goals for small businesses. This suggests that the prime contract is likely being fulfilled by a large defense contractor, and any small business involvement would be at the discretion of Northrop Grumman, potentially through their broader supply chain. Without specific subcontracting plans, the direct impact on the small business ecosystem for this particular award is likely minimal.
Oversight & Accountability
Oversight for this contract will primarily fall under the Department of Defense, specifically the Department of the Army, which is the contracting agency. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Department of Defense Ammunition Procurement
- Weapons Systems Development and Production
- Northrop Grumman Defense Contracts
- Army Ordnance Programs
- Specialized Munitions Manufacturing
Risk Flags
- Potential supply chain vulnerability for specialized components.
- Risk of manufacturing delays due to complexity.
- Need for rigorous quality assurance on advanced ordnance.
Tags
defense, department-of-defense, department-of-the-army, ammunition, weapons-systems, northrop-grumman, firm-fixed-price, full-and-open-competition, delivery-order, specialized-ordnance, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SPECIAL AMMUNITION AND WEAPONS SYSTEMS REQUIREMENTS
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 $46.5 million.
What is the period of performance?
Start: 2024-02-07. End: 2024-11-01.
What is the specific type of 'special ammunition and weapons systems' being procured under this contract?
The provided data does not specify the exact nature of the 'special ammunition and weapons systems.' The NAICS code 332993, 'Ammunition (except Small Arms) Manufacturing,' indicates a broad category. 'Special' could refer to advanced warheads, guided munitions, non-standard caliber ammunition, or integrated weapon platforms. Without further details, it's difficult to assess the technical sophistication or specific application. This lack of specificity is common in publicly available contract award notices for national security reasons, but it limits detailed analysis of the technology and its implications.
How does the $46.5 million contract value compare to historical spending on similar ammunition systems by the Department of the Army?
Direct comparison of the $46.5 million value to historical spending on 'special ammunition and weapons systems' is challenging without precise identification of the system type. The Department of the Army procures a wide array of munitions, from standard artillery shells to highly specialized guided missiles and advanced infantry support weapons. Northrop Grumman has secured numerous contracts for various defense systems, some significantly larger and some smaller than this award. To provide a meaningful comparison, one would need to identify comparable systems procured over the last 5-10 years, considering factors like quantity, technological complexity, and contract type. Publicly available data suggests that major weapons system procurements can range from tens of millions to billions of dollars.
What are the key performance indicators (KPIs) or milestones associated with this delivery order?
The provided contract data does not explicitly list the key performance indicators (KPIs) or specific milestones for this delivery order. However, standard KPIs for ammunition and weapons systems contracts typically include on-time delivery, adherence to quality specifications (e.g., defect rates, performance testing), and compliance with safety and handling protocols. Given the firm fixed-price nature and the short duration (268 days), timely delivery of conforming articles is likely a primary performance metric. The contract likely includes detailed technical specifications and acceptance criteria that the contractor must meet for successful completion and final payment.
What is Northrop Grumman's track record with the Department of the Army for similar types of contracts?
Northrop Grumman Systems Corporation has a long-standing and extensive track record as a prime contractor for the Department of Defense, including the Department of the Army. They are a major provider of various defense systems, including aerospace, defense electronics, and information systems. While the specific 'special ammunition and weapons systems' are not detailed, Northrop Grumman has been involved in the development and production of munitions, missile systems, and related technologies. Their history includes numerous large-scale contracts, indicating a capability to manage complex defense procurements. Analysis of their past performance on similar contracts would typically involve reviewing contract performance reports (CPARS) and historical award data for reliability, quality, and timeliness.
Are there any identified risks associated with the performance or delivery of these specialized systems?
Potential risks associated with this contract could include supply chain disruptions for specialized components, manufacturing complexities leading to delays or quality issues, and the inherent risks of developing or producing advanced ordnance. The firm fixed-price contract shifts financial risk to Northrop Grumman, but performance failures could still impact Army readiness. Given the nature of 'special ammunition,' there might also be risks related to technology maturation, integration with existing platforms, or evolving threat environments requiring design modifications. The relatively short delivery order duration suggests a need for rapid fulfillment, which can sometimes increase execution risk if not managed properly.
What is the strategic importance of these special ammunition and weapons systems to the Department of the Army's current operational needs?
The strategic importance of these 'special ammunition and weapons systems' likely relates to addressing specific, evolving threats or enhancing the Army's capabilities in niche operational environments. 'Special' often implies systems that offer enhanced lethality, precision, range, or effectiveness against particular targets compared to standard munitions. This could include counter-insurgency operations, urban warfare, or engagements requiring standoff capabilities. The award to a major contractor like Northrop Grumman suggests a requirement that is technologically advanced and critical enough to warrant significant investment, aligning with the Army's modernization efforts and readiness objectives.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 415 CONSTITUTION RD BLDG 229, RADFORD, VA, 24141
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: $46,549,900
Exercised Options: $46,549,900
Current Obligation: $46,549,900
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: W52P1J22D0006
IDV Type: IDC
Timeline
Start Date: 2024-02-07
Current End Date: 2024-11-01
Potential End Date: 2024-11-01 12:11:00
Last Modified: 2025-02-25
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