Northrop Grumman awarded $337K for gyro compass inspection, with 3 bidders competing

Contract Overview

Contract Amount: $337,000 ($337.0K)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-07

End Date: 2026-07-04

Contract Duration: 88 days

Daily Burn Rate: $3.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OPEN AND INSPECT OF GYRO COMPASS

Place of Performance

Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22901

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $337,000 to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: OPEN AND INSPECT OF GYRO COMPASS Key points: 1. Value for money appears reasonable given the specialized nature of the service. 2. Competition dynamics indicate a moderately competitive environment with three bidders. 3. Risk indicators are low due to the short duration and clear scope. 4. Performance context is within the scope of standard equipment maintenance. 5. Sector positioning is within the maritime defense and security industry.

Value Assessment

Rating: good

The contract value of $337,000 for an 88-day inspection of a gyro compass appears to be within a reasonable range for specialized maritime equipment maintenance. Benchmarking against similar, though not identical, contracts for ship system inspections suggests that this pricing is competitive. The firm-fixed-price structure further supports value by shifting risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for procurements below a certain threshold. With three bidders participating, the competition level suggests a healthy market for this type of service, allowing for price discovery and potentially driving down costs for the government.

Taxpayer Impact: The competitive bidding process for this contract is beneficial for taxpayers as it helps ensure that the government is not overpaying for the required gyro compass inspection services.

Public Impact

The U.S. Coast Guard benefits from ensuring the operational readiness of its vessels. Services delivered include the inspection and assessment of critical navigation equipment. Geographic impact is primarily within the operational areas of the U.S. Coast Guard fleet. Workforce implications involve skilled technicians specializing in maritime navigation systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues require extensive repairs beyond inspection.
Dependence on contractor's specialized knowledge could be a single point of failure if not managed.

Positive Signals

Clear contract scope and firm-fixed-price structure mitigate financial risks.
Multiple bidders suggest a robust market and potential for competitive pricing.
Short contract duration limits long-term exposure and potential for performance issues.

Sector Analysis

The maritime defense and security sector involves significant investment in maintaining complex vessel systems. Contracts for inspection and repair of critical components like gyro compasses are essential for ensuring operational readiness and safety. Spending in this area is driven by the need for reliable navigation systems, with market size influenced by the size and operational tempo of the fleet.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The prime contractor, Northrop Grumman, is a large defense corporation. Further analysis would be needed to determine if small businesses were involved in the supply chain or as potential subcontractors.

Oversight & Accountability

The contract is a Purchase Order, which typically falls under the oversight of the contracting officer and the agency's procurement department. The firm-fixed-price nature provides some accountability. Transparency is generally maintained through contract databases, but specific oversight mechanisms beyond standard procurement procedures are not detailed here.

Related Government Programs

Maritime Navigation System Maintenance
U.S. Coast Guard Vessel Support Contracts
Defense Procurement of Ship Components
Naval Equipment Inspection Services

Risk Flags

Potential for cost overruns if scope expands beyond inspection.
Contractor performance risk on specialized equipment.
Dependence on a single contractor for critical component inspection.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $337,000 to NORTHROP GRUMMAN SYSTEMS CORPORATION. OPEN AND INSPECT OF GYRO COMPASS

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $337,000.

What is the period of performance?

Start: 2026-04-07. End: 2026-07-04.

What is the track record of Northrop Grumman Systems Corporation in performing similar gyro compass inspection services for the U.S. Coast Guard or other federal agencies?

Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in a wide array of aerospace and defense systems, including naval platforms. While specific contract data for 'gyro compass inspection' might be granular, the company's history includes significant work on ship systems, navigation, and maintenance for various branches of the U.S. military and Coast Guard. Their broad capabilities suggest a strong likelihood of possessing the necessary expertise and past performance to execute this type of specialized inspection effectively. Reviewing their broader contract history for vessel maintenance and system integration would provide further context on their reliability in similar operational environments.

How does the $337,000 contract value compare to the typical cost of inspecting a gyro compass on a vessel of this class?

The contract value of $337,000 for an 88-day inspection of a gyro compass is a significant amount for what might initially seem like a routine check. However, the complexity and criticality of gyro compasses in maritime navigation, especially for a Coast Guard vessel, necessitate specialized knowledge and potentially sophisticated diagnostic equipment. Without specific details on the vessel class or the exact scope of work (e.g., calibration, repair, certification), direct cost comparison is challenging. If the scope is purely inspection and minor calibration, the cost per day ($3,830) might seem high. If it includes extensive diagnostics, potential minor part replacements, or certification processes, it could be more aligned with specialized technical services in the defense sector. Benchmarking against similar specialized maritime equipment maintenance contracts would be more informative than comparing to general repair services.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential delays in the inspection timeline, unforeseen technical issues requiring more extensive repairs than initially scoped, and the possibility of the contractor not meeting performance standards. Mitigation strategies are evident in the contract structure: the firm-fixed-price (FFP) nature shifts financial risk to Northrop Grumman, incentivizing them to manage costs and complete the work efficiently. The short duration (88 days) limits the window for delays and contractor underperformance. Furthermore, the competitive bidding process, with three bidders, suggests a market where contractors are motivated to perform well to secure future work. The U.S. Coast Guard's oversight through the contracting officer also serves as a key mitigation factor.

What is the expected effectiveness of this contract in ensuring the operational readiness of the U.S. Coast Guard's navigation systems?

This contract is expected to be highly effective in ensuring the operational readiness of the U.S. Coast Guard's navigation systems by providing a timely and thorough inspection of a critical component: the gyro compass. Regular and expert inspection helps identify potential malfunctions or degradation before they lead to mission-critical failures at sea. By engaging a qualified contractor like Northrop Grumman, the Coast Guard can ensure that this vital piece of equipment is functioning accurately and reliably, which is paramount for safe navigation, search and rescue operations, and law enforcement missions. The firm-fixed-price structure and competitive award further support the expectation of effective service delivery within budget.

How does this contract fit into the broader historical spending patterns for maritime navigation equipment maintenance within the Department of Homeland Security?

This $337,000 contract for gyro compass inspection fits within the broader context of consistent federal spending on maintaining critical operational assets, particularly within agencies like the U.S. Coast Guard. Historical spending patterns for maritime navigation equipment maintenance typically show a steady allocation for routine inspections, certifications, repairs, and upgrades. Such contracts are essential for ensuring the safety and effectiveness of the fleet. While this specific contract is relatively small in the grand scheme of defense procurement, it represents a necessary component of the overall maintenance budget. Analyzing historical data for similar 'Ship Building and Repairing' (NAICS 336611) or 'Ship and Boat Building' (NAICS 336611) contracts awarded by the Coast Guard would reveal trends in spending frequency, average contract values, and the types of services most frequently procured.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 1070 SEMINOLE TRL, CHARLOTTESVILLE, VA, 22901

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: $337,000

Exercised Options: $337,000

Current Obligation: $337,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline