DoD Awards Northrop Grumman $17.3M for AN/APR-39 Radar Signal Detecting Set Services
Contract Overview
Contract Amount: $17,343,603 ($17.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-08-23
End Date: 2026-02-15
Contract Duration: 907 days
Daily Burn Rate: $19.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: AN/APR-39 RADAR SIGNAL DETECTING SET (RDTS) SERVICES TASK ORDER
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $17.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: AN/APR-39 RADAR SIGNAL DETECTING SET (RDTS) SERVICES TASK ORDER Key points: 1. Contract awarded to a single, large defense contractor. 2. Focus on specialized radar signal detection systems. 3. Potential for cost overruns due to Cost Plus Incentive Fee structure. 4. Sector is critical for military situational awareness.
Value Assessment
Rating: fair
The contract is a Cost Plus Incentive Fee type, which can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar radar system services is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these specialized radar services.
Public Impact
Ensures continued operational capability for critical radar systems. Supports advanced military intelligence and threat detection. Impacts readiness of Army aviation units relying on this equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type carries inherent cost risk.
- Long contract duration increases exposure to price fluctuations.
Positive Signals
- Essential technology for national defense.
- Contractor has established expertise in this niche.
- Incentive fee structure may encourage performance.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on electronic warfare and radar systems. Spending in this area is driven by evolving threats and the need for advanced situational awareness capabilities.
Small Business Impact
The awardee is a large corporation, and there is no indication of small business participation in this specific contract. Opportunities for small businesses may exist further down the supply chain.
Oversight & Accountability
The Cost Plus Incentive Fee structure requires robust oversight to ensure cost control and contractor performance. The Department of Defense should monitor expenditures closely against performance metrics.
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
- Cost-plus contract type
- Long contract duration
- Lack of transparency on performance metrics
Tags
search-detection-navigation-guidance-aer, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. AN/APR-39 RADAR SIGNAL DETECTING SET (RDTS) SERVICES TASK ORDER
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 $17.3 million.
What is the period of performance?
Start: 2023-08-23. End: 2026-02-15.
What is the projected cost savings or efficiency gains anticipated from the incentive fee structure in this contract?
The incentive fee structure is designed to reward the contractor for meeting or exceeding performance targets while potentially controlling costs. However, without specific target metrics and baseline cost estimates, it's difficult to quantify the exact savings. The effectiveness relies heavily on the government's ability to set challenging yet achievable goals and monitor progress rigorously.
How does the lack of competition for this radar system service impact the government's ability to secure competitive pricing in the future?
Sole-source awards can diminish competitive pressure, potentially leading to higher prices over time as the contractor faces less market scrutiny. To mitigate this, the government should explore options for future competition, such as encouraging new entrants or breaking down the requirement into smaller, more contestable components if feasible.
What are the key performance indicators (KPIs) tied to the incentive fee, and how will their achievement be measured?
The specific KPIs are not detailed in the provided data. Typically, for such contracts, KPIs might include system reliability, response time, maintenance turnaround, or successful integration with other platforms. Robust measurement mechanisms and independent verification are crucial to ensure the incentive fee is earned based on genuine performance improvements and not just cost accumulation.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $22,931,596
Exercised Options: $17,343,603
Current Obligation: $17,343,603
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $180,193
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W58RGZ23D0058
IDV Type: IDC
Timeline
Start Date: 2023-08-23
Current End Date: 2026-02-15
Potential End Date: 2026-02-15 00:00:00
Last Modified: 2026-01-21
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