DoD awards $56.7M for 30x173MM PGU-13D/B Ammunition to Northrop Grumman, impacting Air Force readiness
Contract Overview
Contract Amount: $56,712,989 ($56.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-08-07
End Date: 2024-12-31
Contract Duration: 1,607 days
Daily Burn Rate: $35.3K/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: 30X173MM PGU-13D/B AMMUNITION FOR UNITED STATES AIR FORCE, NSN: 1305-01-579-2134
Place of Performance
Location: RADFORD, RADFORD CITY County, VIRGINIA, 24143
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $56.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 30X173MM PGU-13D/B AMMUNITION FOR UNITED STATES AIR FORCE, NSN: 1305-01-579-2134 Key points: 1. High-value contract for critical Air Force munitions. 2. Northrop Grumman is a major defense contractor. 3. Potential risks include supply chain disruptions and cost overruns. 4. Ammunition manufacturing sector is vital for national defense.
Value Assessment
Rating: good
The contract value of $56.7M for PGU-13D/B ammunition appears reasonable given the quantity and specialized nature. Benchmarking against similar large-caliber ammunition contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may lead to higher prices than full and open competition due to reduced market pressure.
Taxpayer Impact: Taxpayer funds are used for essential defense procurement. While competition was limited, the price is assessed as reasonable, mitigating excessive cost impact.
Public Impact
Ensures continued operational capability for U.S. Air Force aircraft. Supports the defense industrial base and associated jobs. Ammunition availability is critical for training and combat readiness. Potential for follow-on contracts based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the best price.
- Reliance on a single source for critical components.
- Potential for schedule delays impacting Air Force readiness.
Positive Signals
- Northrop Grumman has a strong track record in defense manufacturing.
- Firm Fixed Price contract provides cost certainty.
- Long-term contract ensures supply continuity.
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of the defense industrial base. Spending benchmarks for this sector are highly dependent on geopolitical factors and specific munition types.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award, suggesting missed opportunities for SMB engagement.
Oversight & Accountability
The Department of Defense's contracting process includes oversight mechanisms. However, the limited competition aspect warrants scrutiny to ensure fair pricing and prevent potential waste.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may result in higher costs.
- Potential for supply chain disruptions affecting delivery.
- Dependence on a single contractor for critical munitions.
- Lack of small business participation.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 30X173MM PGU-13D/B AMMUNITION FOR UNITED STATES AIR FORCE, NSN: 1305-01-579-2134
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 $56.7 million.
What is the period of performance?
Start: 2020-08-07. End: 2024-12-31.
What is the specific reason for excluding other sources in this 'full and open competition after exclusion of sources' award?
The exclusion of sources typically occurs when only one or a limited number of responsible contractors can fulfill the requirement due to factors like proprietary technology, unique capabilities, or urgent needs. Understanding the specific justification is crucial for assessing the necessity of limited competition and its impact on price discovery.
How does the unit cost of this ammunition compare to similar contracts awarded by other military branches or allied nations?
Benchmarking the unit cost against comparable ammunition contracts is essential for validating the 'good' value assessment. Variations in pricing can be attributed to different contract types, quantities, production scales, and market conditions. A detailed comparison would reveal if the $56.7M award represents a competitive price point.
What are the potential risks associated with Northrop Grumman's ability to meet the delivery schedule given the contract duration and potential supply chain vulnerabilities?
The contract duration extends to December 2024, with a significant value. Risks include potential disruptions in the supply chain for raw materials or components, manufacturing capacity constraints, and unforeseen production challenges. Proactive monitoring and risk mitigation strategies by the DoD are necessary to ensure timely delivery.
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: $56,712,989
Exercised Options: $56,712,989
Current Obligation: $56,712,989
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: 2020-08-07
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 12:12:00
Last Modified: 2024-11-25
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