DoD Awards Northrop Grumman $15.77M for CIRCM Field Support and Logistics Services
Contract Overview
Contract Amount: $15,772,180 ($15.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-04-01
End Date: 2026-03-31
Contract Duration: 364 days
Daily Burn Rate: $43.3K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: COMMON INFRARED COUNTERMEASURE SYSTEM (CIRCM) FIELD SUPPORT REPRESENTATIVE (FSR) SERVICES AND INTERIM CONTRACT LOGISTICS SUPPORT (ICLS) TASK ORDER FY 25.
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $15.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: COMMON INFRARED COUNTERMEASURE SYSTEM (CIRCM) FIELD SUPPORT REPRESENTATIVE (FSR) SERVICES AND INTERIM CONTRACT LOGISTICS SUPPORT (ICLS) TASK ORDER FY 25. Key points: 1. Contract awarded to Northrop Grumman for essential support of the Common Infrared Countermeasure System (CIRCM). 2. The contract focuses on field representative services and interim contract logistics support. 3. This is a sole-source award, raising questions about competition and potential price discovery. 4. The sector is dominated by large defense contractors, with limited opportunities for smaller players.
Value Assessment
Rating: questionable
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar support contracts 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 may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this sole-source award means taxpayers may not be receiving the best possible price for these critical support services.
Public Impact
Ensures continued operational readiness of critical aircraft defense systems. Supports U.S. Army aviation units with specialized technical expertise. Potential for increased costs due to sole-source nature of the award. Impacts the supply chain for specialized aerospace components and services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can incentivize higher spending.
- Lack of transparency in pricing.
Positive Signals
- Essential support for critical defense system.
- Ensures operational readiness of aviation assets.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on specialized electronic systems. Spending in this area is often characterized by long-term contracts and limited competition due to high technical barriers to entry.
Small Business Impact
The awardee is a large defense contractor, and the nature of this specialized support likely presents limited opportunities for small businesses to participate directly. Subcontracting opportunities may exist but are not detailed here.
Oversight & Accountability
The Department of the Army is responsible for oversight. The sole-source nature of the award warrants close scrutiny to ensure fair pricing and effective service delivery.
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.
- Lack of transparency in pricing.
- Potential for cost overruns.
- Limited small business participation.
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 $15.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. COMMON INFRARED COUNTERMEASURE SYSTEM (CIRCM) FIELD SUPPORT REPRESENTATIVE (FSR) SERVICES AND INTERIM CONTRACT LOGISTICS SUPPORT (ICLS) TASK ORDER FY 25.
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 $15.8 million.
What is the period of performance?
Start: 2025-04-01. End: 2026-03-31.
What is the justification for the sole-source award, and what steps are being taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by the contractor. The Department of the Army should have documented this justification. To ensure fair and reasonable pricing, they would typically conduct a should-cost analysis or use historical pricing data, though transparency on these specific actions is often limited in public contract announcements.
How will the performance of Northrop Grumman be monitored to ensure effective delivery of CIRCM support services?
Performance monitoring will likely involve key performance indicators (KPIs) outlined in the contract, such as response times for field support, availability of technical expertise, and successful resolution of issues. The Army Contracting Command and program office will be responsible for tracking these metrics and conducting regular performance reviews with the contractor.
What is the long-term strategy for CIRCM field support, and will future requirements be competed?
The long-term strategy for CIRCM support is not detailed in this award notice. However, it is standard practice for the Department of Defense to eventually compete requirements once initial development and support phases are established, unless specific justifications for continued sole-source awards persist. Future solicitations should be monitored for competitive opportunities.
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: $15,772,180
Exercised Options: $15,772,180
Current Obligation: $15,772,180
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $452,045
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: 2025-04-01
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-01-06
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