DoD awards $131M for Medium Caliber Ammunition to Northrop Grumman, with full and open competition
Contract Overview
Contract Amount: $130,975,569 ($131.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-09-24
End Date: 2026-07-31
Contract Duration: 2,867 days
Daily Burn Rate: $45.7K/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: MEDIUM CALIBER AMMUNITION
Place of Performance
Location: RADFORD, RADFORD CITY County, VIRGINIA, 24143
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $131.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MEDIUM CALIBER AMMUNITION Key points: 1. Significant contract value of $131M for essential defense supplies. 2. Northrop Grumman is a major defense contractor, indicating established capabilities. 3. Full and open competition after exclusion of sources suggests a structured procurement process. 4. The contract spans several years, indicating long-term demand and planning.
Value Assessment
Rating: good
The contract value of $131M for medium caliber ammunition appears reasonable given the duration and nature of the product. Benchmarking against similar large-scale ammunition procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while competition was sought, specific sources were initially identified or excluded. This could impact price discovery if the exclusion was not fully justified.
Taxpayer Impact: The competitive process, even with exclusions, aims to secure fair pricing for taxpayers. The final price will reflect the negotiated terms based on the bids received.
Public Impact
Ensures a steady supply of critical ammunition for military operations. Supports defense industrial base capacity and related jobs. Impacts readiness and operational effectiveness of armed forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition due to source exclusion.
- Long contract duration may not fully capture market price fluctuations.
- Lack of specific unit cost data makes granular price analysis difficult.
Positive Signals
- Significant investment in a key defense capability.
- Procurement process aims for competitive pricing.
- Contract awarded to a reputable defense contractor.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically ammunition production. Spending benchmarks for this category are highly dependent on geopolitical factors and military readiness requirements.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation from small businesses in this contract. Further analysis would be needed to determine if small businesses are involved.
Oversight & Accountability
The Department of Defense's contracting process, including full and open competition after exclusion of sources, is subject to oversight by various bodies to ensure fairness and fiscal responsibility.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for limited competition.
- Long-term contract duration.
- Lack of detailed cost breakdown.
- No explicit small business participation noted.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $131.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. MEDIUM CALIBER AMMUNITION
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 $131.0 million.
What is the period of performance?
Start: 2018-09-24. End: 2026-07-31.
What is the specific justification for excluding certain sources in this 'full and open competition after exclusion of sources' procurement, and how did this impact the final price?
The justification for excluding sources typically relates to specialized capabilities, existing contracts, or specific technical requirements that only a limited number of entities can meet. Without detailed documentation, it's difficult to ascertain the precise impact on price. However, such exclusions can sometimes lead to higher prices compared to unrestricted full and open competition if the pool of bidders is significantly reduced.
How does the per-unit cost of this medium caliber ammunition compare to industry benchmarks or historical DoD contracts for similar items?
Currently, specific per-unit cost data is not provided in the available information, making a direct benchmark comparison impossible. To assess value, one would need to analyze the unit price against historical contract data for the same or similar ammunition types, considering factors like quantity, inflation, and specific technical requirements.
What are the key performance indicators (KPIs) and quality assurance measures in place to ensure the effectiveness and reliability of the delivered ammunition?
Effective oversight of ammunition contracts typically involves stringent quality assurance protocols, including material testing, performance validation, and adherence to military specifications. Key performance indicators would likely focus on on-time delivery, defect rates, and compliance with all technical requirements to ensure the ammunition meets operational standards.
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, PLYMOUTH, 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: $130,975,569
Exercised Options: $130,975,569
Current Obligation: $130,975,569
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $2,163,945
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J18D0092
IDV Type: IDC
Timeline
Start Date: 2018-09-24
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 12:07:00
Last Modified: 2025-09-25
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