DoD Awards $165.7M for CIRCM B Kits to Northrop Grumman, Sole-Source Contract
Contract Overview
Contract Amount: $165,758,324 ($165.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-11-14
End Date: 2027-07-31
Contract Duration: 989 days
Daily Burn Rate: $167.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CIRCM B KITS
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $165.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CIRCM B KITS Key points: 1. Significant contract value of $165.7 million. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Contract duration extends to July 2027, indicating long-term need. 4. Focus on Search, Detection, Navigation systems highlights critical defense capabilities.
Value Assessment
Rating: questionable
The contract value of $165.7 million for CIRCM B Kits is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar systems or potential alternatives.
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 potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these critical defense systems.
Public Impact
Ensures continued availability of critical helicopter protection systems. Supports advanced navigation and detection technology for military aircraft. Potential for increased costs due to sole-source nature impacts defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Critical defense system
- Long-term contract
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on advanced navigation and detection systems for military aircraft. Spending benchmarks in this area are often high due to technological complexity and specialized requirements.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this sole-source contract award.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the government is receiving the best possible value and that the contractor is meeting all performance requirements.
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
- Lack of competition
- Potential for overpricing
- Limited transparency in pricing
- Long-term commitment without competitive validation
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 $165.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CIRCM 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 $165.8 million.
What is the period of performance?
Start: 2024-11-14. End: 2027-07-31.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of viable alternatives. Without further details, it's difficult to ascertain the specific reasons, but agencies must demonstrate that competition was not feasible or would not be in the government's best interest.
What are the potential risks associated with a sole-source contract of this magnitude?
The primary risks include inflated pricing due to the absence of competitive pressure, potential for complacency from the sole provider, and a lack of innovation that might arise from market competition. There's also a risk that the government becomes overly reliant on a single supplier.
How will the effectiveness of the CIRCM B Kits be measured under this contract?
Effectiveness will likely be measured through contractor performance metrics, adherence to technical specifications, delivery schedules, and operational performance of the kits in real-world scenarios. The Department of Defense will establish key performance indicators (KPIs) to track the system's reliability and mission success.
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: $165,758,324
Exercised Options: $165,758,324
Current Obligation: $165,758,324
Actual Outlays: $30,629,571
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $-11,190,663
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: 2027-07-31
Potential End Date: 2027-07-31 12:07:00
Last Modified: 2025-09-18
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