DoD's $19.6M Wideband Remote Monitoring Sensor contract awarded to Northrop Grumman without competition
Contract Overview
Contract Amount: $19,573,971 ($19.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2015-06-10
End Date: 2019-03-09
Contract Duration: 1,368 days
Daily Burn Rate: $14.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF WIDEBAND REMOTE MONITORING SENSOR (WRMS) INTEGRATION, INSTALLATION AND SYSTEMS ENGINEERING SERVICES
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $19.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF WIDEBAND REMOTE MONITORING SENSOR (WRMS) INTEGRATION, INSTALLATION AND SYSTEMS ENGINEERING SERVICES Key points: 1. Contract awarded to a single, large defense contractor. 2. No competition was utilized for this significant award. 3. The contract duration was substantial at 1368 days. 4. The sector is Satellite Telecommunications, a critical area for defense.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Without competitive pricing, it's difficult to assess if the $19.6M price represents good value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition for a nearly $20 million contract raises concerns about taxpayer value and whether a more cost-effective solution could have been secured.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The reliance on a single vendor for critical monitoring systems could pose a long-term risk. The Department of Defense's procurement process for this item warrants further scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- No small business participation indicated
Positive Signals
- Awarded to a known defense contractor
- Addresses a specific defense need (monitoring systems)
Sector Analysis
The Satellite Telecommunications sector is vital for modern defense operations, enabling communication and intelligence gathering. Spending in this area is typically high due to technological complexity and strategic importance.
Small Business Impact
There is no indication of small business participation in this contract. The award went to a large prime contractor, Northrop Grumman, suggesting opportunities for small businesses were either not sought or not included.
Oversight & Accountability
The sole-source nature of this contract raises questions about the oversight applied during the procurement process. Further review is needed to understand why competition was bypassed and if adequate justification was documented.
Related Government Programs
- Satellite Telecommunications
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award bypasses competitive pricing.
- Cost-plus contract type can lead to cost overruns.
- Lack of small business participation.
- Long contract duration without clear performance milestones.
- Potential for vendor lock-in.
Tags
satellite-telecommunications, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF WIDEBAND REMOTE MONITORING SENSOR (WRMS) INTEGRATION, INSTALLATION AND SYSTEMS ENGINEERING SERVICES
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 $19.6 million.
What is the period of performance?
Start: 2015-06-10. End: 2019-03-09.
What was the justification for awarding this contract on a sole-source basis, and were alternative solutions or vendors considered?
The provided data indicates the contract was 'NOT COMPETED'. Without further documentation, the specific justification for this sole-source award remains unclear. Typically, sole-source awards require a strong justification, such as unique capabilities, urgent need, or lack of market availability. It is essential to review the contract file to ascertain if these criteria were met and if any market research was conducted to explore competitive alternatives.
How does the Cost Plus Fixed Fee structure impact the risk of cost overruns for this $19.6M contract?
Cost Plus Fixed Fee (CPFF) contracts share cost risk between the government and the contractor. While the contractor's profit is fixed, they are reimbursed for allowable costs. This structure can incentivize contractors to control costs to maximize their profit margin. However, without robust oversight and clear performance metrics, there's still a risk of cost increases if the scope is not well-defined or if unforeseen issues arise, potentially leading to higher-than-expected government expenditure.
What is the long-term strategic implication of awarding a critical monitoring system contract without competition?
Awarding critical systems without competition can lead to vendor lock-in, reduced innovation, and potentially higher long-term costs as the government becomes dependent on a single provider. It also limits opportunities for other capable companies, including small businesses, to enter the market. This approach may also reduce the government's leverage in future negotiations and could pose a supply chain risk if the sole provider faces challenges.
Industry Classification
NAICS: Information › Satellite Telecommunications › Satellite Telecommunications
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: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1304 CONCOURSE DR STE 400, LINTHICUM HEIGHTS, MD, 21090
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: $19,573,971
Exercised Options: $19,573,971
Current Obligation: $19,573,971
Subaward Activity
Number of Subawards: 42
Total Subaward Amount: $136,163,517
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-06-10
Current End Date: 2019-03-09
Potential End Date: 2019-04-30 00:00:00
Last Modified: 2026-02-03
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