Army awards $43.3M for M940 MPT-SD Ammunition to Northrop Grumman
Contract Overview
Contract Amount: $43,310,464 ($43.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-09-22
End Date: 2024-10-31
Contract Duration: 1,500 days
Daily Burn Rate: $28.9K/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 M940 MPT-SD (AC34) AMMUNITION FOR THE UNITED STATES ARMY, NSN: 1305-01-668-9908
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442
Plain-Language Summary
Department of Defense obligated $43.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 20MM M940 MPT-SD (AC34) AMMUNITION FOR THE UNITED STATES ARMY, NSN: 1305-01-668-9908 Key points: 1. Significant award for critical ammunition, supporting Army readiness. 2. Northrop Grumman, a major defense contractor, is the awardee. 3. Competition method indicates a potential for price optimization. 4. Ammunition manufacturing sector is vital for national defense.
Value Assessment
Rating: good
The award of $43.3M for ammunition appears reasonable given the quantity and nature of the product. Benchmarking against similar ammunition contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a specific justification for limiting the initial pool of bidders. This method can impact price discovery if not carefully managed.
Taxpayer Impact: Taxpayer funds are being used for essential military supplies, with the competition method aiming to secure a fair price.
Public Impact
Ensures continued supply of critical ammunition for U.S. Army operations. Supports defense industrial base and associated jobs. Impacts readiness and operational capabilities of the Army.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have impacted final price.
- Contract duration extends over several years, requiring ongoing monitoring.
Positive Signals
- Award to a reputable defense contractor.
- Clear product specification (M940 MPT-SD Ammunition).
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending in this area is directly tied to military readiness and geopolitical factors. Benchmarks are difficult without specific ammunition type comparisons.
Small Business Impact
The awardee, Northrop Grumman Systems Corporation, is a large business. There is no indication of small business participation in this specific award, which is common for large-scale defense contracts.
Oversight & Accountability
The Department of Defense and Department of the Army are responsible for oversight. The contract type (Firm Fixed Price) and delivery order structure suggest defined oversight mechanisms.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for price inflation due to limited competition.
- Long contract duration requires sustained oversight.
- Dependence on a single supplier for critical munitions.
- Geopolitical factors could impact supply chain stability.
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 $43.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 20MM M940 MPT-SD (AC34) AMMUNITION FOR THE UNITED STATES ARMY, NSN: 1305-01-668-9908
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 $43.3 million.
What is the period of performance?
Start: 2020-09-22. End: 2024-10-31.
What was the specific justification for excluding other sources in the full and open competition?
The justification for excluding other sources in the full and open competition is crucial for understanding the pricing dynamics. Without this information, it's difficult to ascertain if the limited competition resulted in a suboptimal price for the government. Further investigation into the exclusion rationale is warranted.
How does the per-unit cost of this ammunition compare to similar contracts awarded in the last two years?
A comparative analysis of the per-unit cost against similar ammunition contracts is essential for validating value for money. If this contract's unit price is significantly higher than comparable awards, it could indicate potential overpricing or unique contract requirements that need further scrutiny.
What are the key performance indicators (KPIs) for this contract to ensure effective delivery and quality?
Understanding the key performance indicators (KPIs) is vital for assessing the effectiveness of this contract. These metrics likely include delivery timelines, quality control standards for ammunition, and adherence to specifications. Robust KPIs ensure the Army receives reliable and effective munitions.
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: $43,310,464
Exercised Options: $43,310,464
Current Obligation: $43,310,464
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $1,290,664
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: 2020-09-22
Current End Date: 2024-10-31
Potential End Date: 2024-10-31 12:10:00
Last Modified: 2025-06-23
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