DoD Awards Northrop Grumman $11.5M for Infrared Countermeasure System Support
Contract Overview
Contract Amount: $11,504,276 ($11.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-03-27
End Date: 2025-12-31
Contract Duration: 644 days
Daily Burn Rate: $17.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: COMMON INFRARED COUNTERMEASURE SYSTEM FISCAL YEAR 2024 FIELD SERVICE REPRESENTATIVE AND INTERIM CONTRACTOR LOGISTICS (FSR/ICLS) SUPPORT
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $11.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: COMMON INFRARED COUNTERMEASURE SYSTEM FISCAL YEAR 2024 FIELD SERVICE REPRESENTATIVE AND INTERIM CONTRACTOR LOGISTICS (FSR/ICLS) SUPPORT Key points: 1. Contract awarded to a single, established provider for specialized system support. 2. Focus on field service and logistics for critical defense technology. 3. Potential for cost overruns due to Cost Plus Incentive Fee structure. 4. Sector is dominated by large, established defense contractors.
Value Assessment
Rating: fair
The $11.5M award for FSR/ICLS support is a significant investment. Benchmarking is difficult without specific performance metrics, but the CPIF contract type suggests a focus on achieving cost efficiencies while maintaining performance.
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 not yield the most competitive pricing for the government.
Taxpayer Impact: The lack of competition for this sole-source award means taxpayers may not be receiving the best possible price for these essential support services.
Public Impact
Ensures continued operational readiness of critical infrared countermeasure systems. Supports advanced military aircraft and personnel safety. Maintains technological advantage in defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost Plus Incentive Fee can lead to higher costs if not managed.
- Long contract duration (644 days) increases exposure to price fluctuations.
Positive Signals
- Supports critical defense technology.
- Awarded to an experienced contractor.
- Ensures operational readiness.
Sector Analysis
This contract falls within the Defense sector, specifically supporting advanced navigation and guidance systems. Spending in this area is typically high due to the complexity and critical nature of the technology.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of small business participation in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective performance. The Department of the Army is responsible for monitoring contractor performance and expenditures.
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
- Cost Plus Incentive Fee structure
- Potential for contractor complacency
- Vendor lock-in
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 $11.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. COMMON INFRARED COUNTERMEASURE SYSTEM FISCAL YEAR 2024 FIELD SERVICE REPRESENTATIVE AND INTERIM CONTRACTOR LOGISTICS (FSR/ICLS) SUPPORT
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 $11.5 million.
What is the period of performance?
Start: 2024-03-27. End: 2025-12-31.
What is the projected cost savings or efficiency gain expected from the incentive fee structure in this CPIF contract?
The specific cost savings or efficiency gains tied to the incentive fee are not detailed in the provided data. CPIF contracts aim to incentivize the contractor to control costs below a target, with shared savings if achieved. However, the effectiveness relies heavily on the baseline cost estimates and the specific incentive clauses negotiated by the Department of the Army.
What are the risks associated with relying on a sole-source provider for critical defense system support over an extended period?
Sole-source awards carry risks of inflated pricing due to lack of competition, potential for complacency from the contractor, and vendor lock-in. For critical defense systems, this can impact long-term affordability and technological advancement if the sole provider does not innovate or maintain competitive pricing.
How does the performance of this FSR/ICLS support impact the overall effectiveness and readiness of the supported military platforms?
Effective Field Service Representative and Interim Contractor Logistics Support are crucial for maintaining the operational readiness of complex defense systems like infrared countermeasures. Poor support can lead to system downtime, reduced mission capability, and increased risk to personnel and assets. Conversely, excellent support ensures high availability and optimal performance.
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: 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: $11,504,276
Exercised Options: $11,504,276
Current Obligation: $11,504,276
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $1,405,253
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: 2024-03-27
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-09-11
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