Army Awards $27.5M for 95 XM813 Cannons to Northrop Grumman, Not Competed
Contract Overview
Contract Amount: $27,520,835 ($27.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-03-30
End Date: 2025-01-31
Contract Duration: 1,038 days
Daily Burn Rate: $26.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ESTABLISHING DELIVERY ORDER FOR ORDERING PERIOD 3 FOR 95 XM813 CANNONS.
Place of Performance
Location: MESA, MARICOPA County, ARIZONA, 85215
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $27.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ESTABLISHING DELIVERY ORDER FOR ORDERING PERIOD 3 FOR 95 XM813 CANNONS. Key points: 1. Significant award for heavy ordnance, indicating continued investment in military hardware. 2. Sole-source award raises questions about price discovery and potential for overpayment. 3. Long-term contract (2025) suggests sustained need for these cannons. 4. Focus on a specific weapon system highlights specialized defense procurement.
Value Assessment
Rating: questionable
The award amount of $27.5 million for 95 cannons is difficult to benchmark without specific per-unit cost data. The lack of competition makes it challenging to assess if the price is fair and reasonable compared to potential market alternatives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman Systems Corporation. This limits price discovery and may result in a higher cost to the government than if competitive bids were solicited.
Taxpayer Impact: The lack of competition on this $27.5 million contract means taxpayers may not be receiving the best possible price for these essential military assets.
Public Impact
Taxpayers fund the acquisition of advanced military hardware for the U.S. Army. The procurement supports a major defense contractor, potentially impacting jobs and the defense industrial base. This spending contributes to the U.S. military's artillery capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
Positive Signals
- Procurement of critical defense equipment
- Long-term contract provides stability
Sector Analysis
This procurement falls within the Defense sector, specifically related to ordnance manufacturing. Defense spending on major weapon systems like cannons is a significant portion of the federal budget, often characterized by long procurement cycles and specialized contractors.
Small Business Impact
The contract was awarded directly to Northrop Grumman Systems Corporation and does not indicate any subcontracting to small businesses. The primary manufacturer is a large defense prime contractor.
Oversight & Accountability
The award was made via a delivery order under an existing contract. Oversight would focus on ensuring the terms of the original contract are met and that the delivery meets specifications and timelines. The sole-source nature warrants scrutiny.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Sole-source award
- Potential for price escalation
- Limited transparency on justification
- No small business participation evident
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, az, 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. ESTABLISHING DELIVERY ORDER FOR ORDERING PERIOD 3 FOR 95 XM813 CANNONS.
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: 2022-03-30. End: 2025-01-31.
What is the justification for the sole-source award of the XM813 cannons to Northrop Grumman?
The provided data states the contract was 'NOT COMPETED,' implying a sole-source justification. Typically, sole-source awards require a documented justification, such as unique capabilities, urgent need, or lack of viable alternatives. Without this justification, it's difficult to assess the necessity of bypassing the competitive process.
What is the projected per-unit cost of the XM813 cannons, and how does it compare to industry benchmarks?
The data provides a total award amount of $27,520,835 for 95 cannons. This yields a per-unit cost of approximately $289,693. Benchmarking this figure requires access to proprietary pricing data for similar advanced artillery systems, which is not publicly available. The lack of competition further complicates a fair comparison.
What are the specific performance requirements and delivery timelines for these cannons?
The contract has a duration of 1038 days, with a start date of March 30, 2022, and an end date of January 31, 2025. While the award is for '95 XM813 Cannons,' specific performance metrics, technical specifications, and detailed delivery schedules are not included in the provided data. These details would be crucial for assessing the effectiveness of the procurement.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $27,520,835
Exercised Options: $27,520,835
Current Obligation: $27,520,835
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $543,202
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56HZV20D0108
IDV Type: IDC
Timeline
Start Date: 2022-03-30
Current End Date: 2025-01-31
Potential End Date: 2025-01-31 00:00:00
Last Modified: 2025-04-26
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