DoD's $14.1M Radio & TV Communication Equipment Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $14,111,911 ($14.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2005-09-30
End Date: 2007-12-20
Contract Duration: 811 days
Daily Burn Rate: $17.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE
Sector: IT
Official Description: 200512!008700!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05DL608 !A!N! !N!0001 ! !20050930!20070930!068943042!008255408!016435559!N!XETRON CORPORATION !460 W CRESCENTVILLE RD !CINCINNATI !OH!45246!15000!061!39!CINCINNATI !HAMILTON !OHIO !+000014111911!N!N!000000000000!5820!RADIO & TV COMM EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !233 !SINCGARS !334220!E! !5!A!S! ! ! !20200930!B! ! !B! !D!N!J!1!001!N!1A!A!Y!F! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: CINCINNATI, BUTLER County, OHIO, 45246, UNITED STATES OF AMERICA
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $14.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200512!008700!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05DL608 !A!N! !N!0001 ! !20050930!20070930!068943042!008255408!016435559!N!XETRON CORPORATION !460 W CRESCENTVILLE RD !CINCINNATI !OH!45246!15000!061!39!CINCINNATI !HAMI… Key points: 1. Contract awarded for Radio & TV Communication Equipment, with a value of $14.1 million. 2. Northrop Grumman Systems Corporation is the prime contractor. 3. The contract was not competed, raising potential concerns about price discovery. 4. The sector is Electronics and Communication Equipment, with a NAICS code of 334220.
Value Assessment
Rating: fair
The contract value of $14.1 million for specialized communication equipment appears within a reasonable range for similar government procurements. However, without detailed cost breakdowns or competitive bids, a precise valuation is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and may result in higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition could lead to taxpayers paying a premium for this equipment.
Public Impact
This contract supports the Department of Defense's communication capabilities. The equipment procured is essential for broadcasting and wireless communications. The award to a single vendor may impact market dynamics for this specific equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Contract duration of over two years without clear justification for non-competition.
- Potential for overpayment due to lack of competitive bidding.
Positive Signals
- Procurement of critical communication equipment.
- Established contractor with experience in the field.
Sector Analysis
The Electronics and Communication Equipment Manufacturing sector (NAICS 334220) is vital for national defense and public safety. Spending in this sector can vary significantly based on technological advancements and specific agency needs.
Small Business Impact
This contract does not appear to involve small business participation, as it was awarded directly to a large corporation. Further analysis would be needed to determine if subcontracting opportunities were explored.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and necessity. Oversight should focus on the justification for not competing the contract and the final price paid.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Potential for reduced innovation due to single-vendor reliance.
- Limited transparency in the procurement process.
- Contract duration and value warrant detailed cost analysis.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200512!008700!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05DL608 !A!N! !N!0001 ! !20050930!20070930!068943042!008255408!016435559!N!XETRON CORPORATION !460 W CRESCENTVILLE RD !CINCINNATI !OH!45246!15000!061!39!CINCINNATI !HAMILTON !OHIO !+000014111911!N!N!000000000000!5820!RADIO & TV COMM EQUIPMENT, EXCEPT AIRBORNE !A7 !ELECTRONICS AND COMMUNICATION EQUIP !233 !SINCGARS !334220!E! !5!A!S! ! ! !202
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 $14.1 million.
What is the period of performance?
Start: 2005-09-30. End: 2007-12-20.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a detailed justification, such as the unique capabilities of a single provider or urgent national security needs. Without this justification, it's difficult to assess if the government explored all viable options or if a competitive process could have yielded better terms.
How does the $14.1 million contract value compare to industry benchmarks for similar Radio & TV Communication Equipment, especially given the lack of competition?
Benchmarking is challenging without knowing the exact specifications of the equipment. However, sole-source contracts often carry a price premium. The $14.1 million value should be compared against historical sole-source awards for comparable systems and, if possible, against prices for commercially available, similar-functionality equipment to gauge potential overpayment.
What is the long-term strategic value of this specific equipment, and how does it align with the Department of Defense's future communication needs?
The strategic value depends on the specific capabilities of the 'SINCGARS' system mentioned. If it represents a critical, proprietary technology essential for current operations and future modernization plans, the sole-source award might be strategically justified. However, if it's a legacy system or has readily available alternatives, the long-term value and the decision to procure it this way warrant further investigation.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless 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: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 460 W CRESCENTVILLE RD, CINCINNATI, OH, 45246
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15P7T05DL608
IDV Type: IDC
Timeline
Start Date: 2005-09-30
Current End Date: 2007-12-20
Potential End Date: 2007-12-20 00:00:00
Last Modified: 2016-02-19
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