DoD Awards Northrop Grumman $16.1M for CIRCM B-Kits, Facing Limited Competition
Contract Overview
Contract Amount: $16,089,137 ($16.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-11-14
End Date: 2027-08-31
Contract Duration: 1,020 days
Daily Burn Rate: $15.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: COMMON INFRARED COUNTERMEASURE (CIRCM) FULL RATE PRODUCTION ORDER OF 10 B-KITS
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $16.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: COMMON INFRARED COUNTERMEASURE (CIRCM) FULL RATE PRODUCTION ORDER OF 10 B-KITS Key points: 1. The Department of the Army awarded Northrop Grumman a $16.1M order for Common Infrared Countermeasure (CIRCM) B-Kits. 2. This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. 3. The award was 'NOT COMPETED', raising concerns about price discovery and potential taxpayer impact. 4. The duration of the contract is 1020 days, ending August 31, 2027.
Value Assessment
Rating: questionable
The contract is a firm fixed price delivery order. Without competitive bidding, it's difficult to assess if the $16.1M price is optimal compared to similar systems or previous CIRCM procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition scenario. This lack of competition may lead to higher prices than if multiple vendors were considered, potentially impacting the government's ability to secure the best value.
Taxpayer Impact: The absence of competition raises concerns about whether taxpayers are receiving the most cost-effective solution for these critical countermeasure systems.
Public Impact
Enhances survivability of Army aircraft against missile threats. Supports ongoing military operations and readiness. Potential for increased costs due to lack of competition. Impacts the defense industrial base, specifically in advanced electronic warfare systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Critical defense system procurement
- Supports aircraft survivability
Sector Analysis
This procurement falls within the defense sector, specifically for advanced electronic warfare systems. Benchmarks for similar countermeasure systems are often proprietary or difficult to ascertain due to the specialized nature and limited number of suppliers.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific delivery order, which is common for highly specialized defense systems.
Oversight & Accountability
The Department of the Army is responsible for oversight. The 'NOT COMPETED' status warrants scrutiny to ensure fair pricing and justification for the lack of competition, potentially through internal DoD reviews or GAO protests.
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 competitive bidding
- Potential for cost overruns
- Limited transparency in pricing
- Sole-source award raises value concerns
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 $16.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. COMMON INFRARED COUNTERMEASURE (CIRCM) FULL RATE PRODUCTION ORDER OF 10 B-KITS
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 $16.1 million.
What is the period of performance?
Start: 2024-11-14. End: 2027-08-31.
What is the justification for not competing this significant procurement of CIRCM B-Kits?
The justification for not competing this procurement is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without further information, it's difficult to assess the validity of this justification and its impact on achieving best value.
What is the risk associated with a sole-source award for critical defense systems like CIRCM?
The primary risk of a sole-source award for critical defense systems is the potential for inflated pricing due to the absence of competitive pressure. This can lead to inefficient use of taxpayer funds. Additionally, it can stifle innovation by limiting opportunities for other capable companies to enter the market or offer alternative solutions, potentially impacting long-term technological advancement and supply chain resilience.
How does this award impact the overall effectiveness of the CIRCM program?
This award directly contributes to the operational effectiveness of the CIRCM program by providing essential B-Kits, which are crucial components for the system's functionality. However, the lack of competition raises questions about the cost-effectiveness of this contribution. If the price is not optimized, resources that could be used for other defense priorities or to procure more units may be constrained, indirectly affecting the program's overall reach and impact.
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: $16,089,137
Exercised Options: $16,089,137
Current Obligation: $16,089,137
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $-1,009,675
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: 2024-11-14
Current End Date: 2027-08-31
Potential End Date: 2027-08-31 12:08:00
Last Modified: 2025-09-19
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