DoD awards $131.5M contract for Ammunition Manufacturing to Northrop Grumman
Contract Overview
Contract Amount: $131,505,546 ($131.5M)
Contractor: Northrop Grumman Innovation Systems LLC
Awarding Agency: Department of Defense
Start Date: 2002-09-04
End Date: 2007-10-31
Contract Duration: 1,883 days
Daily Burn Rate: $69.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: JANESVILLE, ROCK County, WISCONSIN, 53548, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $131.5 million to NORTHROP GRUMMAN INNOVATION SYSTEMS LLC for work described as: Key points: 1. Contract awarded to a large, established defense contractor. 2. Significant contract value suggests a critical need for ammunition. 3. The contract type (Firm Fixed Price) shifts risk to the contractor. 4. The sector is Defense, specifically ammunition manufacturing.
Value Assessment
Rating: fair
The contract value of $131.5M over 5 years is substantial. Without specific unit cost data or benchmarks for similar ammunition manufacturing contracts, a precise value assessment is difficult. However, the duration and scope suggest a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition scenario. This suggests that while competition was sought, specific circumstances or requirements may have restricted the pool of eligible bidders, potentially impacting price discovery.
Taxpayer Impact: The substantial award amount indicates a significant taxpayer investment. The limited competition aspect raises questions about whether the most cost-effective solution was secured for taxpayers.
Public Impact
Ensures supply of critical ammunition for military operations. Supports jobs within the defense manufacturing sector. Potential for long-term reliance on a single supplier for specific ammunition types.
Waste & Efficiency Indicators
Waste Risk Score: 69 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Long contract duration could reduce flexibility.
- Dependence on a single contractor for essential supplies.
Positive Signals
- Firm Fixed Price contract transfers cost overrun risk.
- Ensures a consistent supply of necessary ammunition.
- Contract awarded to a known entity with relevant experience.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing of ammunition. Spending in this area is critical for national security and is often subject to specialized procurement processes due to the nature of the products and the primary customer being the government.
Small Business Impact
The data indicates this contract was not awarded to a small business. Large defense contracts often involve complex manufacturing processes and economies of scale that may favor larger corporations, potentially limiting opportunities for small businesses in this specific procurement.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve program management, quality assurance, and financial tracking to ensure contract terms and delivery schedules are met.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns despite FFP due to complex manufacturing.
- Risk of supply chain disruptions affecting ammunition availability.
- Limited competition may reduce long-term cost savings.
- National security implications if supply is compromised.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, wi, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $131.5 million to NORTHROP GRUMMAN INNOVATION SYSTEMS LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN INNOVATION SYSTEMS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $131.5 million.
What is the period of performance?
Start: 2002-09-04. End: 2007-10-31.
What specific types of ammunition are covered under this contract, and how do their unit costs compare to industry benchmarks?
The contract specifies 'Ammunition (except Small Arms) Manufacturing.' Without detailed line item data, it's impossible to determine the exact types of ammunition. Unit cost comparisons are also not feasible without this breakdown. Further analysis would require access to the contract's detailed specifications and pricing schedules to benchmark against similar government or commercial procurements.
What were the specific reasons for excluding other potential sources, and did this exclusion significantly impact the final contract price?
The contract notes 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This implies that initial broad competition was considered, but specific requirements or circumstances led to the exclusion of certain sources. The exact reasons (e.g., unique capabilities, national security concerns, prior investment) are not detailed. The impact on price is difficult to quantify without a comparison to a fully open competition scenario.
How effectively has Northrop Grumman met the delivery and quality requirements for this ammunition contract over its duration?
Assessing the effectiveness of Northrop Grumman's performance requires reviewing contract performance reports, delivery records, and any quality assurance data associated with this specific contract. Without access to these post-award performance metrics, it's impossible to definitively state how effectively they met requirements. Historical performance data for the contractor in similar roles could offer some insight.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 5050 LINCOLN DRIVE, EDINA, MN, 55436
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-09-04
Current End Date: 2007-10-31
Potential End Date: 2007-10-31 00:00:00
Last Modified: 2015-09-02
More Contracts from Northrop Grumman Innovation Systems LLC
- 199812!2100!0718!AE30 !U.S. Army Armament RD&E Center !daae3098c1094 !A!*!* !19980821!19990712!618705925!618705925!618705925!n!06424!alliant Techsystems Inc !600 2ND ST NE !hopkins !mn!55343!18188!053!27!edina !hennepin !minnesota !0001!+000002906000!n!n!000000000000!1315!ammunition, 75 MM Through 125 MM !A6 !ammunition !1000!NOT Discernable or Classified !8731!3!*!*!*!B!A!*!A !n!v!2!002!n!1g!a!y!z!* !* !n!c!*!a!a!a!a!a!*!* !*!n!a!b!n!*!*!*!*!*! — $147.9M (Department of Defense)
- 199911!2100!0725!AA09 !U.S. Army Industrial Operations !daaa0999c0066 !A!*!* !19990831!20020228!618705925!618705925!618705925!n!0mvu4!alliant Techsystems Inc !600 2ND ST NE !hopkins !mn!55343!30140!053!27!hopkins !hennepin !minnesota !0001!+000000084038!y!n!000000000000!1305!ammunition, Through 30 MM !A6 !ammunition !1000!NOT Discernable or Classified !3483!3!*!*!*!B!A!*!A !n!j!2!002!n!3a!a!n!a!* !* !n!c!*!a!a!a!a!a!*!* !*!n!a!c!n!*!*!*!*!*! — $145.0M (Department of Defense)
- 200011!2100!000776!AE30 !tacom - Picatinny !daae3000c1065 !A!*!* !20000804!20040831!618705925!618705925!618705925!n!0mvu4!alliant Techsystems Inc !600 2ND ST NE !hopkins !mn!55343!30140!053!27!hopkins !hennepin !minnesota !0001!+000007480000!n!n!000000000000!ad13!rdte/Ammunition-Adv Tech DEV !c9e!all Other Supplies and Equipme!1000!not Discernable or Classified !3484!3!*!*!*!B!A!*!D !n!r!1!001!n!1g!z!y!z!* !* !n!c!*!a!a!a!a!a!a!* !*!n!a!d!n!*!*!*!*!*! — $111.9M (Department of Defense)
- 200205!000060!5700!GM15 !aac/Wmk !F0863502C0049 !A!N! !N! !20020222!20040228!618705925!618705925!618705925!n!alliant Techsystems !5050 Lincoln Drive !edina !mn!55436!37825!105!55!janesville !rock !wisconsin !+000007330182!n!n!000000000000!1095!miscellaneous Weapons !A5 !weapons !3000!NOT Discernable or Classified !332993!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!j!2!004!b! !A!Y!A! ! !N!C!N! ! ! !c!d!a!a!000!a!c!y! ! ! ! ! ! !0001! — $88.7M (Department of Defense)
- 200212!001233!2100!AE30 !tacom - Picatinny !daae3002c1118 !A!N! !N! !20020924!20040624!618705925!618705925!618705925!n!alliant Techsystems !5050 Lincoln Drive !edina !mn!55436!51730!053!27!plymouth !hennepin !minnesota !+000015571435!n!n!000000000000!ac55!rdte/Weapons-Eng/Manuf Develop !A6 !ammunition !1000!NOT Discernable or Classified !332993!E! !3! ! ! ! ! !99990909!B! ! !A! !d!u!v!1!001!n!1a!c!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!y! ! ! ! ! ! !0001! — $79.4M (Department of Defense)
View all Northrop Grumman Innovation Systems LLC 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)