DoD Awards Northrop Grumman $155M for CIRCM Production, Sole-Source Contract
Contract Overview
Contract Amount: $155,109,291 ($155.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-04-30
End Date: 2023-07-31
Contract Duration: 822 days
Daily Burn Rate: $188.7K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: COMMON INFRARED COUNTERMEASURE (CIRCM) FULL RATE PRODUCTION
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $155.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: COMMON INFRARED COUNTERMEASURE (CIRCM) FULL RATE PRODUCTION Key points: 1. Significant award for critical infrared countermeasure systems. 2. Sole-source nature raises questions about price competition. 3. Potential for cost overruns due to lack of competitive pressure. 4. Focus on advanced defense technology within the aerospace sector.
Value Assessment
Rating: questionable
The award amount of $155M for CIRCM full-rate production appears substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential alternatives or previous contract phases.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. This limits price discovery and may lead to higher costs for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition in this sole-source award could result in higher overall spending for the Department of Defense and taxpayers.
Public Impact
Enhances military aircraft survivability against infrared threats. Supports ongoing modernization efforts within the U.S. Army. Ensures continued availability of advanced defensive technology for warfighters.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source procurement
- Lack of competitive pricing
- Potential for cost escalation
Positive Signals
- Critical defense system
- Supports warfighter safety
- Addresses advanced threat capabilities
Sector Analysis
This award falls within the aerospace and defense sector, specifically focusing on advanced electronic warfare and countermeasure systems. Spending in this area is driven by evolving global threats and the need for technological superiority.
Small Business Impact
The data indicates this contract was awarded to a large prime contractor, Northrop Grumman. There is no direct information provided on small business participation or subcontracting opportunities within this specific award.
Oversight & Accountability
Oversight of sole-source contracts is crucial to ensure fair pricing and prevent waste. The Department of Defense should actively monitor performance and costs to maintain accountability for this significant expenditure.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for cost overruns due to limited oversight.
- Dependency on a single contractor.
- Need for robust performance validation.
Tags
search-detection-navigation-guidance-aer, department-of-defense, il, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $155.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. COMMON INFRARED COUNTERMEASURE (CIRCM) FULL RATE PRODUCTION
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 $155.1 million.
What is the period of performance?
Start: 2021-04-30. End: 2023-07-31.
What is the historical cost performance of CIRCM production under previous contracts, and how does this award compare?
Historical cost data from prior CIRCM production phases would be essential for a comprehensive value assessment. Comparing the per-unit cost and total expenditure against previous contract performance, adjusted for inflation and scope changes, would reveal trends. Without this, it's challenging to determine if the $155M represents good value or a potential increase in cost efficiency.
What are the specific justifications for awarding this contract on a sole-source basis, and have alternatives been considered?
Sole-source awards typically require strong justification, such as unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Understanding the specific rationale provided by the Department of Defense for not competing this CIRCM production contract is vital. Investigating whether alternative solutions or potential competitors were evaluated, even if ultimately deemed unsuitable, would shed light on the necessity of this procurement approach.
How will the effectiveness of the CIRCM system be measured and validated post-delivery to ensure it meets operational requirements?
The effectiveness of the CIRCM system is paramount given its role in protecting aircrews. Post-delivery validation should involve rigorous testing, operational assessments, and feedback from end-users. Key performance indicators related to threat detection, jamming capabilities, and system reliability must be tracked. Ensuring that the system consistently performs as intended in real-world scenarios is critical to justifying the significant investment.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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: 600 HICKS RD, ROLLING MEADOWS, IL, 60008
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: $155,109,291
Exercised Options: $155,109,291
Current Obligation: $155,109,291
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $51,919,998
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ21D0028
IDV Type: IDC
Timeline
Start Date: 2021-04-30
Current End Date: 2023-07-31
Potential End Date: 2023-07-31 12:07:00
Last Modified: 2023-07-05
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