DoD awards $33.9M for 30mm Programmable Airburst Munition-Tracer Cartridges to Northrop Grumman
Contract Overview
Contract Amount: $33,930,616 ($33.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2019-08-23
End Date: 2021-11-30
Contract Duration: 830 days
Daily Burn Rate: $40.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 30X173MM MK310 MOD 0 PROGRAMMABLE AIRBURST MUNITION - TRACER (PABM-T) CARTRIDGE, NSN:1305-01-673-4130 AND 30X173MM SETTER VERIFICATION DEVICE, NSN: 1305-01-675-2918
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442
Plain-Language Summary
Department of Defense obligated $33.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 30X173MM MK310 MOD 0 PROGRAMMABLE AIRBURST MUNITION - TRACER (PABM-T) CARTRIDGE, NSN:1305-01-673-4130 AND 30X173MM SETTER VERIFICATION DEVICE, NSN: 1305-01-675-2918 Key points: 1. The contract focuses on specialized ammunition for the Department of the Army. 2. Northrop Grumman, a major defense contractor, is the sole awardee. 3. The contract type is Firm Fixed Price, indicating price certainty. 4. Competition was limited after exclusion of sources, raising potential cost concerns.
Value Assessment
Rating: fair
The total award of $33.9 million for 830 days of performance appears reasonable for specialized munitions. However, without specific unit cost data or comparison to similar advanced ammunition programs, a definitive value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while some competition may have occurred, it was restricted, potentially limiting price discovery and leading to higher costs than a fully open competition.
Taxpayer Impact: The limited competition may result in taxpayers paying a premium for this specialized ammunition, as the government did not leverage the full potential of the market.
Public Impact
Ensures readiness for Army aviation and ground units requiring advanced airburst capabilities. Supports ongoing modernization efforts for infantry fighting vehicles and attack helicopters. Potential for follow-on contracts based on performance and future needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate costs.
- Sole awardee raises concerns about market responsiveness.
- Lack of detailed cost breakdown hinders value assessment.
Positive Signals
- Addresses critical warfighter needs for advanced munitions.
- Firm Fixed Price contract provides budget predictability.
- Northrop Grumman is an established defense contractor with relevant expertise.
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector. Spending in this area is critical for national defense, with significant government investment in advanced ordnance to maintain technological superiority.
Small Business Impact
The awardee, Northrop Grumman Systems Corporation, is a large business. There is no indication of small business participation in this specific contract, which is common for highly specialized defense procurements.
Oversight & Accountability
The Department of Defense, specifically the Department of the Army, is responsible for oversight. The 'Delivery Order' indicates this is part of a larger contract vehicle, suggesting existing oversight mechanisms are in place.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition.
- Sole awardee.
- Lack of transparency in pricing.
- Potential for cost overruns.
- Dependence on a single supplier.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mn, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 30X173MM MK310 MOD 0 PROGRAMMABLE AIRBURST MUNITION - TRACER (PABM-T) CARTRIDGE, NSN:1305-01-673-4130 AND 30X173MM SETTER VERIFICATION DEVICE, NSN: 1305-01-675-2918
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 $33.9 million.
What is the period of performance?
Start: 2019-08-23. End: 2021-11-30.
What is the specific justification for excluding other sources in the competition for these advanced munitions?
The justification for excluding other sources likely relates to proprietary technology, unique manufacturing capabilities, or specific performance requirements that only Northrop Grumman could meet at the time of award. Detailed technical specifications and the specialized nature of programmable airburst technology often limit the pool of qualified contractors, necessitating a more restricted competition to ensure mission capability.
How does the unit cost of this programmable airburst munition compare to similar advanced munitions from other nations or previous programs?
Without access to detailed cost breakdowns or benchmarks for comparable advanced munitions, it is difficult to definitively assess the unit cost. However, programmable airburst technology is inherently more complex and expensive than standard ammunition. The limited competition and sole awardee status may have contributed to a higher unit cost compared to more commoditized munitions.
What are the long-term strategic implications of relying on a single supplier for this critical ammunition component?
Relying on a single supplier for critical ammunition components like the PABM-T can create strategic vulnerabilities. It increases dependence on that supplier's production capacity, pricing, and continued viability. Should the supplier face disruptions or increase prices significantly, the military's ability to procure these essential munitions could be jeopardized, potentially impacting operational readiness.
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: 1
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: $33,930,616
Exercised Options: $33,930,616
Current Obligation: $33,930,616
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: 2019-08-23
Current End Date: 2021-11-30
Potential End Date: 2021-11-30 12:11:00
Last Modified: 2025-08-14
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