Northrop Grumman awarded $32.8M contract for Wideband Remote Monitoring System, a sole-source procurement

Contract Overview

Contract Amount: $32,758,680 ($32.8M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2012-09-21

End Date: 2015-09-30

Contract Duration: 1,104 days

Daily Burn Rate: $29.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: WIDEBAND REMOTE MONITORING SYSTEM (WRMS)

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: WIDEBAND REMOTE MONITORING SYSTEM (WRMS) Key points: 1. Contract value of $32.8M for a three-year period suggests a significant investment in monitoring capabilities. 2. Sole-source nature raises questions about potential lack of competitive pressure on pricing and innovation. 3. The 'DEFINITIVE CONTRACT' type indicates a long-term agreement with specific terms and conditions. 4. Awarded to Northrop Grumman, a major defense contractor, implying a focus on established capabilities. 5. The contract's duration of 1104 days (approx. 3 years) aligns with typical system deployment and sustainment cycles. 6. The NAICS code 334220 points to the manufacturing of radio and television broadcasting and wireless communications equipment.

Value Assessment

Rating: questionable

Benchmarking the value of this $32.8 million contract is challenging without specific performance metrics or comparable systems. However, the sole-source award to Northrop Grumman for a definitive contract suggests a pre-negotiated price. The absence of competition means there's no direct market comparison to assess if the price represents optimal value for money. Further analysis would require understanding the system's capabilities and comparing its cost to similar, competitively procured systems if available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one responsible source is available or when a compelling justification for other than full and open competition exists. The lack of multiple bidders means there was no direct price discovery through a competitive bidding process, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competition, there is less pressure on the contractor to offer the lowest possible price.

Public Impact

The Department of the Army is the primary beneficiary, receiving the Wideband Remote Monitoring System. The system is intended to enhance wireless communications and broadcasting equipment capabilities. The contract's geographic impact is likely focused on military installations or operational areas where the system is deployed. Workforce implications may include specialized technical roles for installation, maintenance, and operation of the monitoring system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Lack of transparency in the justification for sole-source procurement.
Contract duration and value may not reflect the most innovative or cost-efficient solutions available on the market.

Positive Signals

Award to a major defense contractor like Northrop Grumman suggests access to established expertise and technology.
Definitive contract provides a stable framework for system deployment and sustainment.
Focus on wireless communications equipment manufacturing aligns with critical defense needs.

Sector Analysis

The contract falls within the Information Technology and Defense sectors, specifically related to wireless communications equipment manufacturing. The market for such systems is driven by defense needs for secure and reliable remote monitoring. Benchmarking against similar defense communication system procurements would be necessary for a comprehensive value assessment, but the sole-source nature complicates direct comparisons.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans for small businesses. The award to a large prime contractor like Northrop Grumman suggests that small business participation, if any, would likely be through subcontracts awarded by the prime.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a definitive contract, it likely includes specific reporting and oversight mechanisms. Transparency regarding the justification for the sole-source award and the system's performance metrics would be key to assessing accountability.

Related Government Programs

Defense Communications Systems
Wireless Network Infrastructure
Electronic Warfare Systems
Intelligence, Surveillance, and Reconnaissance (ISR) Equipment

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. WIDEBAND REMOTE MONITORING SYSTEM (WRMS)

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 $32.8 million.

What is the period of performance?

Start: 2012-09-21. End: 2015-09-30.

What specific capabilities does the Wideband Remote Monitoring System (WRMS) provide to the Department of the Army?

The provided data indicates the contract is for the 'WIDEBAND REMOTE MONITORING SYSTEM (WRMS)' and falls under NAICS code 334220 (Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing). While the exact capabilities are not detailed, it can be inferred that the WRMS likely involves the deployment of advanced wireless communication equipment for monitoring purposes. This could include surveillance, signal intelligence, or network status monitoring across various operational environments. The 'wideband' aspect suggests the system is designed to handle a broad spectrum of frequencies or high data throughput, crucial for modern military communications and intelligence gathering.

What is the justification for awarding this contract on a sole-source basis to Northrop Grumman?

The data explicitly states the contract was 'NOT COMPETED' and is a 'sole-source' award. The specific justification for this determination is not provided in the data. Typically, sole-source awards are made when only one responsible source is capable of providing the required goods or services, or when there is a critical need that cannot be met through competitive means. Reasons can include unique technological capabilities, proprietary information, or urgent requirements where competition would cause unacceptable delays. Without further documentation, the precise rationale remains unknown, but it implies a belief by the Department of the Army that Northrop Grumman was the only viable option.

How does the $32.8 million contract value compare to similar monitoring systems procured by the Department of Defense?

Direct comparison of the $32.8 million contract value for the Wideband Remote Monitoring System (WRMS) is difficult without knowing the specific technical specifications, scope of work, and duration of comparable systems. Furthermore, the sole-source nature of this award means it was not subject to competitive pricing pressures. To benchmark effectively, one would need to identify other competitively procured wideband monitoring systems with similar capabilities and deployment scales within the Department of Defense. Analyzing the cost per operational hour, per unit deployed, or per capability delivered for those competitive contracts would provide a more accurate value assessment than this sole-source figure alone.

What is Northrop Grumman's track record with similar wideband monitoring or communication systems for the Department of Defense?

Northrop Grumman is a major defense contractor with extensive experience in aerospace, defense, and information systems. They have a well-established track record of developing and delivering complex communication, surveillance, and intelligence systems for the Department of Defense. While specific details on their past performance with 'wideband remote monitoring systems' are not in the provided data, their portfolio includes a wide range of electronic warfare, radar, and communication technologies that are likely relevant. Their history suggests a capacity to handle large, technologically advanced contracts, though the performance and value of specific past contracts would require further investigation.

What are the potential risks associated with a sole-source contract of this magnitude?

The primary risk associated with a sole-source contract of this magnitude ($32.8 million) is the potential for reduced value for money due to the lack of competitive pressure. Without competing bids, the government may pay a higher price than if multiple contractors had vied for the contract. There's also a risk of complacency from the contractor, potentially leading to less innovation or slower response times compared to a competitive environment. Furthermore, the justification for sole-source procurement needs to be robust to ensure it's not masking a failure to adequately plan or conduct market research to identify potential competitors.

What is the historical spending trend for Wideband Remote Monitoring Systems or similar technologies by the Department of the Army?

The provided data only pertains to this single $32.8 million contract awarded in 2012. To understand historical spending trends for Wideband Remote Monitoring Systems (WRMS) or similar technologies by the Department of the Army, a broader analysis of federal procurement databases would be necessary. This would involve searching for contracts with similar product/service codes (like NAICS 334220 or relevant PSC codes), keywords, and agencies over several fiscal years. Without this broader dataset, it's impossible to determine if this contract represents an increase, decrease, or stable level of spending in this technology area.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171

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: $32,915,530

Exercised Options: $32,915,530

Current Obligation: $32,758,680

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $735,800

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline