DoD awards Northrop Grumman $27.5M for HE DUAL PURPOSE-SELF DESTRUCT Cartridges
Contract Overview
Contract Amount: $27,537,766 ($27.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-07-28
End Date: 2027-02-28
Contract Duration: 1,676 days
Daily Burn Rate: $16.4K/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: LW30 XM1198 HIGH EXPLOSIVE DUAL PURPOSE-SELF DESTRUCT CARTRIDGES: NSN" 1305-01-677-3767
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442
Plain-Language Summary
Department of Defense obligated $27.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LW30 XM1198 HIGH EXPLOSIVE DUAL PURPOSE-SELF DESTRUCT CARTRIDGES: NSN" 1305-01-677-3767 Key points: 1. The Department of the Army awarded a significant contract for specialized ammunition. 2. Northrop Grumman Systems Corporation is the sole awardee, indicating a specific capability. 3. The contract spans nearly five years, suggesting a long-term need. 4. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a complex procurement history or specialized nature of the item.
Value Assessment
Rating: fair
The contract value of $27.5M over approximately 5 years appears reasonable for specialized ammunition. Benchmarking against similar complex ordnance contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while competition was sought, certain sources were excluded, potentially limiting the competitive landscape and impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used for critical defense materiel. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.
Public Impact
Ensures readiness for Army operations by providing essential ammunition. Supports a major defense contractor, potentially impacting jobs and the defense industrial base. The specialized nature of the ammunition may have implications for training and operational safety.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about potential overpricing.
- Lack of transparency in source exclusion could mask inefficiencies.
- Long contract duration may not account for technological advancements.
Positive Signals
- Addresses a critical defense requirement.
- Secures a known supplier for specialized munitions.
- Provides long-term supply stability.
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector. Spending in this sector is driven by defense readiness requirements and technological advancements in ordnance.
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 award.
Oversight & Accountability
The Department of the Army is responsible for oversight. The contract type (FIRM FIXED PRICE) provides some cost control, but the limited competition warrants scrutiny of performance and pricing.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may lead to higher costs.
- Exclusion of sources requires justification for fairness and value.
- Long-term contract duration could be subject to price fluctuations.
- Lack of small business participation.
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 $27.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LW30 XM1198 HIGH EXPLOSIVE DUAL PURPOSE-SELF DESTRUCT CARTRIDGES: NSN" 1305-01-677-3767
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 $27.5 million.
What is the period of performance?
Start: 2022-07-28. End: 2027-02-28.
What specific technical or security reasons led to the exclusion of certain sources in this competition?
The exclusion of sources in a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' typically stems from unique technical requirements, proprietary technology, security concerns, or specific performance capabilities that only a limited number of contractors can meet. Detailed documentation within the contract file should justify these exclusions and demonstrate that the chosen source offers the best value despite the narrowed field.
How does the per-unit cost of these cartridges compare to similar, non-self-destructing high-explosive rounds?
A direct comparison of per-unit cost is challenging without specific data on the 'self-destruct' feature's complexity and manufacturing overhead. However, specialized features generally increase costs. If the self-destruct mechanism adds significant expense without a commensurate increase in tactical advantage or safety, it could represent a value concern for taxpayers.
What is the projected operational effectiveness gain from using self-destructing cartridges compared to standard high-explosive rounds?
Self-destructing cartridges are designed to mitigate risks associated with unexploded ordnance (UXO), enhancing safety for friendly forces and civilians, and reducing long-term environmental hazards. The effectiveness gain is measured in reduced collateral damage, improved operational tempo by minimizing UXO clearance, and enhanced force protection. Quantifying this gain often involves risk assessments and post-mission analyses.
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: $27,537,766
Exercised Options: $27,537,766
Current Obligation: $27,537,766
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: 2022-07-28
Current End Date: 2027-02-28
Potential End Date: 2027-02-28 12:02:00
Last Modified: 2025-12-08
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)