DoD Awards Northrop Grumman $144M for CIRCM FRP Delivery Order
Contract Overview
Contract Amount: $144,000,847 ($144.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-02-02
End Date: 2024-07-31
Contract Duration: 910 days
Daily Burn Rate: $158.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CIRCM FRP DELIVERY ORDER 02
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $144.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CIRCM FRP DELIVERY ORDER 02 Key points: 1. Significant award to a major defense contractor for a critical system. 2. Limited competition likely due to specialized nature of CIRCM. 3. Potential for cost overruns or schedule delays in complex defense programs. 4. Spending concentrated in the Defense sector, specifically aircraft systems.
Value Assessment
Rating: fair
The award amount of $144M for a delivery order appears substantial. Benchmarking against similar complex electronic warfare system contracts would be necessary to assess pricing effectiveness. Without more granular data on system components and labor hours, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED,' indicating a limited or sole-source approach. This limits price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive process. The specific justification for not competing is crucial.
Taxpayer Impact: The lack of competition raises concerns about taxpayer value. Without competitive pressure, the government may not be securing the best possible price for this significant investment.
Public Impact
Impacts military readiness and aviation safety through advanced threat detection. Supports a major defense contractor, potentially sustaining jobs in the aerospace sector. Highlights ongoing investment in sophisticated electronic warfare capabilities for the U.S. Army.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost growth in complex defense systems
- Long performance period (910 days)
Positive Signals
- Award to established prime contractor
- Addresses critical defense capability (CIRCM)
Sector Analysis
This spending falls within the Defense sector, specifically related to advanced aircraft systems and electronic warfare. Benchmarks for similar complex system development and delivery orders are typically in the hundreds of millions, making this award significant but not necessarily out of line without further context.
Small Business Impact
The awardee is Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of small business participation in this specific delivery order based on the provided data. Subcontracting opportunities for small businesses may exist but are not detailed here.
Oversight & Accountability
Oversight would focus on contract performance, adherence to schedule, and quality of deliverables. The Department of the Army's contracting and program management offices are responsible for ensuring accountability and value for taxpayer money on this delivery order.
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
- Lack of competition
- Potential for cost overruns
- Long contract duration
- Complexity of the system
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 $144.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CIRCM FRP DELIVERY ORDER 02
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 $144.0 million.
What is the period of performance?
Start: 2022-02-02. End: 2024-07-31.
What is the specific justification for not competing this delivery order, and what steps are being taken to ensure fair pricing?
The justification for not competing is critical for understanding the limited competition. Agencies typically cite reasons like urgency, unique capabilities, or prior investments. To ensure fair pricing, the government should conduct robust price analysis, potentially using historical data, independent cost estimates, or certified cost and pricing data from the contractor.
What are the key performance metrics and risk mitigation strategies for this CIRCM FRP delivery order?
Key performance metrics likely include system functionality, reliability, integration with existing platforms, and timely delivery. Risk mitigation strategies should address technical challenges, supply chain disruptions, cybersecurity threats, and potential cost overruns. Regular program reviews and contractor performance assessments are essential for monitoring and managing these risks.
How does this investment in CIRCM align with broader DoD modernization goals and threat assessments?
This investment aligns with the DoD's goal of enhancing survivability for aviation assets against evolving threats, particularly infrared-guided missiles. CIRCM (Countermeasure and Receiver Control Module) is a critical component of protecting aircraft. Understanding the specific threat landscape and the system's effectiveness against current and future adversaries provides context for the necessity and value of this spending.
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: $144,000,847
Exercised Options: $144,000,847
Current Obligation: $144,000,847
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $51,472,543
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: 2022-02-02
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 12:07:00
Last Modified: 2023-08-15
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