DoD Awards Northrop Grumman $8.5M for Medium Caliber Ammunition Delivery Order
Contract Overview
Contract Amount: $8,540,713 ($8.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-09-24
End Date: 2026-10-31
Contract Duration: 2,959 days
Daily Burn Rate: $2.9K/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: 20MM PGU-30 A/B TP-T BULK PACK (BP) CARTRIDGE (AA28) MEDIUM CALIBER AMMUNITION DELIVERY ORDER AWARD.
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442
Plain-Language Summary
Department of Defense obligated $8.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 20MM PGU-30 A/B TP-T BULK PACK (BP) CARTRIDGE (AA28) MEDIUM CALIBER AMMUNITION DELIVERY ORDER AWARD. Key points: 1. The award is for a delivery order under a larger contract, indicating ongoing procurement needs. 2. Northrop Grumman, a major defense contractor, secured this order. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The procurement falls under the Ammunition (except Small Arms) Manufacturing sector.
Value Assessment
Rating: fair
The contract is a delivery order, making direct price comparison difficult without knowing the base contract's terms. However, the fixed-price nature suggests an attempt at cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a limited competition, potentially impacting price discovery. The specific reasons for excluding other sources are not detailed.
Taxpayer Impact: Taxpayer funds are being used for essential military supplies. The limited competition may result in a higher price than under full and open competition.
Public Impact
Ensures the supply of critical ammunition for military operations. Supports the Department of Defense's readiness and operational capabilities. Contributes to the defense industrial base and associated jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Lack of transparency on source exclusion criteria.
Positive Signals
- Firm Fixed Price contract shifts cost risk.
- Delivery order under an existing contract structure.
Sector Analysis
This procurement falls within the Ammunition (except Small Arms) Manufacturing sector. Spending in this sector is critical for national defense, with benchmarks often tied to military readiness levels and geopolitical factors.
Small Business Impact
The awardee, Northrop Grumman Systems Corporation, is a large business. There is no indication that small businesses were involved as subcontractors in this specific delivery order.
Oversight & Accountability
Delivery orders under larger contracts can sometimes receive less granular oversight than new contract awards. Accountability relies on the terms of the base contract and the Department of the Army's monitoring.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Lack of detailed pricing information
- Potential for higher costs due to source exclusion
- Long contract duration (2018-2026)
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mn, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 20MM PGU-30 A/B TP-T BULK PACK (BP) CARTRIDGE (AA28) MEDIUM CALIBER AMMUNITION DELIVERY ORDER AWARD.
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 $8.5 million.
What is the period of performance?
Start: 2018-09-24. End: 2026-10-31.
What was the justification for excluding other sources in this 'limited' full and open competition?
The justification for excluding other sources is not provided in the data. Typically, such exclusions might be based on specific technical requirements, existing supply chain integration, or urgent need that only certain pre-qualified vendors can meet. Understanding this rationale is crucial for assessing if the limited competition truly served the government's best interest or if it inadvertently restricted potential cost savings.
How does the unit price of this ammunition compare to similar contracts awarded under full and open competition?
Direct unit price comparison is not possible with the provided data, as it lacks per-unit cost details and the specifics of the base contract. However, the 'limited' competition structure suggests a potential for higher pricing compared to a scenario with broader participation. Further analysis would require access to the base contract and historical pricing data for comparable ammunition types.
What is the long-term strategic value of this specific ammunition type to the DoD?
The strategic value lies in its role as medium caliber ammunition, likely used in various platforms for ground and potentially air support. Its consistent procurement indicates ongoing operational requirements. The long-term value is tied to maintaining force readiness, supporting training exercises, and ensuring adequate stockpiles for potential contingencies, reflecting a sustained investment in core military capabilities.
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: $8,540,713
Exercised Options: $8,540,713
Current Obligation: $8,540,713
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $133,440
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: 2026-10-31
Potential End Date: 2026-10-31 12:10:00
Last Modified: 2025-12-18
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