Northrop Grumman awarded $34.1M for 30MM linked cartridges, with delivery expected by June 2026

Contract Overview

Contract Amount: $34,119,267 ($34.1M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2024-08-27

End Date: 2026-06-30

Contract Duration: 672 days

Daily Burn Rate: $50.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 30X173MM PGU-13D/B HIGH EXPLOSIVE INCENDIARY LINKED CARTRIDGES AND FIRST ARTICLE TEST, NSN: 1305-01-633-0903

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $34.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 30X173MM PGU-13D/B HIGH EXPLOSIVE INCENDIARY LINKED CARTRIDGES AND FIRST ARTICLE TEST, NSN: 1305-01-633-0903 Key points: 1. Contract value represents a significant investment in specialized ammunition manufacturing. 2. Competition dynamics suggest a focused market for this specific ordnance. 3. Delivery timeline indicates a medium-term production requirement. 4. The contract is a delivery order under a larger agreement, suggesting potential for follow-on work. 5. Northrop Grumman's established role in defense manufacturing positions them as a key supplier. 6. The firm fixed price contract type aims to control costs and provide predictability.

Value Assessment

Rating: good

The contract value of $34.1 million for ammunition manufacturing appears reasonable given the specialized nature of the product. Benchmarking against similar contracts for high-explosive incendiary rounds is challenging due to proprietary data and specific technical requirements. However, the price per unit, while not explicitly stated, is likely competitive within the defense sector for such advanced ordnance. The firm fixed price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, specific criteria or prior agreements may have limited the pool of eligible bidders. The presence of two bidders suggests a degree of competition, but the exclusion of other potential sources warrants further investigation into the rationale. This approach can sometimes lead to higher prices if the competitive set is too narrow.

Taxpayer Impact: The limited competition may result in a less favorable price for taxpayers compared to a fully open bidding process. However, the exclusion of sources might be justified by specific technical requirements or existing strategic partnerships that ensure supply chain integrity.

Public Impact

The Department of Defense is the primary beneficiary, ensuring readiness and operational capability. The contract delivers essential 30MM high-explosive incendiary linked cartridges. The geographic impact is primarily within the United States, supporting domestic defense manufacturing. Workforce implications include skilled labor in ammunition manufacturing and related supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition to drive up costs.
Reliance on a single contractor for a critical component.
Ensuring quality control for high-explosive ordnance.

Positive Signals

Firm fixed price contract provides cost predictability.
Northrop Grumman is an established defense contractor with relevant expertise.
Delivery order structure may indicate a streamlined procurement process.

Sector Analysis

This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of the broader defense industrial base. The market for specialized ordnance is characterized by high barriers to entry due to stringent quality, safety, and technological requirements. Spending in this sector is directly tied to military readiness and geopolitical demands. Comparable spending benchmarks are difficult to ascertain publicly due to the classified or sensitive nature of specific munition types and quantities.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the prime contractor, Northrop Grumman, will likely fulfill the contract using its own capabilities or through larger, established suppliers, potentially limiting opportunities for small businesses in this particular procurement.

Oversight & Accountability

Oversight for this contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the firm fixed price contract terms and delivery schedules. Transparency is facilitated through contract award databases, though specific technical details and pricing breakdowns may be restricted. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Ammunition Procurement
Northrop Grumman Defense Contracts
30MM Ammunition Systems
High Explosive Incendiary Rounds
Defense Industrial Base Manufacturing

Risk Flags

Limited competition may impact price.
Potential supply chain vulnerabilities for specialized components.
Safety and handling risks associated with explosive materials.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 30X173MM PGU-13D/B HIGH EXPLOSIVE INCENDIARY LINKED CARTRIDGES AND FIRST ARTICLE TEST, NSN: 1305-01-633-0903

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $34.1 million.

What is the period of performance?

Start: 2024-08-27. End: 2026-06-30.

What is the historical spending pattern for 30MM PGU-13D/B cartridges by the Department of Defense?

Analyzing historical spending for specific ammunition types like the 30MM PGU-13D/B requires access to detailed procurement databases and contract award histories. While this specific award is for $34.1 million, understanding the broader trend involves looking at previous contracts for the same NSN or similar munitions over the past 5-10 years. Factors influencing historical spending include operational tempo, inventory levels, modernization programs, and geopolitical events. Without direct access to historical data for this precise item, it's difficult to provide a definitive spending pattern. However, sustained demand for such munitions is typical for active military forces, suggesting a consistent, albeit potentially fluctuating, level of procurement over time. Future spending will likely depend on evolving threat assessments and military modernization efforts.

How does the price per unit for these cartridges compare to similar defense contracts?

Determining the precise price per unit for the 30MM PGU-13D/B cartridges is not possible with the provided data, as only the total contract value and quantity (implied by 'linked cartridges') are available. To compare pricing, one would need to divide the total award amount ($34,119,266.97) by the total number of cartridges. This figure is not explicitly stated. Furthermore, direct comparisons are complicated by variations in contract terms (firm fixed price vs. cost-plus), inclusion of ancillary services (testing, packaging, shipping), specific technical specifications, and the competitive landscape at the time of award. Generally, specialized munitions with high-explosive incendiary properties command a premium due to complex manufacturing processes, stringent safety requirements, and advanced materials. Benchmarking would ideally involve analyzing data from multiple, recent, similarly competed contracts for comparable ordnance.

What are the key performance indicators (KPIs) for this contract, and how is Northrop Grumman's performance being measured?

Key performance indicators (KPIs) for this firm fixed price contract likely revolve around timely delivery, adherence to technical specifications, and quality control. The contract duration is from August 27, 2024, to June 30, 2026 (672 days), making on-time delivery a critical KPI. Northrop Grumman's performance will be measured against the detailed technical data package for the 30MM PGU-13D/B cartridges, ensuring that each round meets stringent safety and performance standards, including explosive content and incendiary properties. Quality assurance checks, potentially including first article testing (as mentioned in the description), will be paramount. The Defense Contract Management Agency (DCMA) will likely conduct inspections and monitor progress to ensure compliance. Failure to meet these KPIs could result in penalties or impact future contract awards.

What is the strategic importance of the 30MM PGU-13D/B cartridge to current military operations?

The 30MM PGU-13D/B cartridge is a high-explosive incendiary (HEI) round, indicating its primary role is to inflict damage through blast effects and ignition upon impact. These types of rounds are typically employed in aircraft cannons (like the GAU-8 Avenger on the A-10 Thunderbolt II) or ground-based weapon systems against armored vehicles, personnel, infrastructure, and low-flying aircraft. Its strategic importance lies in providing air-to-ground and ground-to-ground suppressive fire and direct attack capabilities. The HEI payload ensures effectiveness against a range of targets, making it a versatile munition for close air support and battlefield interdiction. Sustained procurement suggests it remains a relevant and necessary component of the U.S. military's arsenal for ongoing and anticipated operational requirements.

Are there any known risks associated with the manufacturing or supply chain of this specific type of ammunition?

Risks associated with manufacturing and supplying high-explosive incendiary ammunition like the 30MM PGU-13D/B can be multifaceted. Manufacturing risks include the handling of hazardous materials, the need for specialized facilities compliant with strict safety regulations, and the potential for production delays due to complex processes or equipment failures. Supply chain risks involve the availability and cost of raw materials (e.g., specific metals, propellants, explosive compounds), potential disruptions from geopolitical events or natural disasters affecting suppliers, and the security of the supply chain against tampering or theft. Given the 'Exclusion of Sources' aspect of the competition, there might be specific risks related to the limited number of qualified manufacturers or the proprietary nature of certain technologies, which could impact long-term supply stability or price volatility.

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 AFTER EXCLUSION OF SOURCES

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: 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: $34,119,267

Exercised Options: $34,119,267

Current Obligation: $34,119,267

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $6,701,763

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W519TC24D0007

IDV Type: IDC

Timeline