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

Positive Signals

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

Risk Flags

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: ManufacturingCommunications Equipment ManufacturingRadio 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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