DoD awards Northrop Grumman $28.7M contract for Other Communications Equipment Manufacturing, awarded via sole-source
Contract Overview
Contract Amount: $28,673,498 ($28.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2009-09-14
End Date: 2011-11-30
Contract Duration: 807 days
Daily Burn Rate: $35.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BASIC EFFORT
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: BASIC EFFORT Key points: 1. Contract awarded to a single, large business vendor. 2. Significant contract value for specialized equipment. 3. Limited competition raises questions about price discovery. 4. Sector is Other Communications Equipment Manufacturing.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the $28.7 million price is reasonable compared to market rates for similar equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may have paid a premium due to the absence of competition. The specific equipment procured is not detailed, limiting public understanding of its necessity. Long contract duration (over 2 years) suggests a complex or critical need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency on specific equipment
Positive Signals
- Awarded to a known defense contractor
Sector Analysis
The 'Other Communications Equipment Manufacturing' sector involves the production of specialized communication devices. Benchmarks are difficult to establish without knowing the exact nature of the equipment, but sole-source awards in manufacturing can often be less cost-effective.
Small Business Impact
This contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Army. Oversight would focus on ensuring the contractor meets the cost-plus fixed fee requirements and delivers the specified equipment within the defined parameters.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for overpayment due to sole-source award.
- Cost-plus contract type can incentivize higher spending.
- Lack of transparency regarding the specific equipment procured.
- No small business participation noted.
Tags
other-communications-equipment-manufactu, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. BASIC EFFORT
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 $28.7 million.
What is the period of performance?
Start: 2009-09-14. End: 2011-11-30.
What was the justification for the sole-source award, and was it truly the only viable option?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. For this contract, the justification would need to be thoroughly documented by the Department of the Army, detailing why Northrop Grumman was uniquely capable and why alternatives were not feasible. Without this documentation, it's difficult to assess the validity of the sole-source decision.
How was the fixed fee determined in this Cost Plus Fixed Fee contract to ensure fairness?
In a Cost Plus Fixed Fee (CPFF) contract, the fixed fee is negotiated separately from the estimated costs. It represents the contractor's profit. The fee is typically based on factors like the complexity of the work, the contractor's performance risk, and the urgency of the requirement. The government aims to negotiate a fee that is fair and reasonable, incentivizing efficient performance without being excessive.
What is the specific nature of the 'Other Communications Equipment' and its strategic importance to the Department of Defense?
The specific nature of the 'Other Communications Equipment' is not detailed in the provided data. Understanding its strategic importance would require further investigation into the contract's statement of work and the Army's operational requirements. This information is crucial for assessing the necessity of the expenditure and the potential impact of any supply chain disruptions.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Titan II Inc.
Address: 2340 DULLES CORNER BOULEVARD, HERNDON, VA, 20171
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: $29,045,202
Exercised Options: $29,045,202
Current Obligation: $28,673,498
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-09-14
Current End Date: 2011-11-30
Potential End Date: 2011-11-30 00:00:00
Last Modified: 2025-12-31
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)