DoD's $152.7M contract for Other Communications Equipment Manufacturing awarded to Northrop Grumman Systems Corporation
Contract Overview
Contract Amount: $460,513,090 ($460.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2001-03-16
End Date: 2007-09-28
Contract Duration: 2,387 days
Daily Burn Rate: $192.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: 200106!000028!5700!GV47 !ESC/JSK !F1962801C0015 !A!N!*!N! !20010316!20050531!152670030!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!2000 W NASA BLVD !MELBOURNE !FL!32902!43975!009!12!MELBOURNE !BREVARD !FLORIDA !+000038219323!N!N!000000000000!AC64!RDTE/ELECTRONICS & COMMUNICATION EQ-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION !3GNP!AN/FSD JOINT STARS !334290!*!*!1! ! ! !*!*!*!B!*!*!A! !D !N!L!1!001!N!1G!A!Y!D! ! !N!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! ! ! ! !0001!
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904, UNITED STATES OF AMERICA
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $460.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200106!000028!5700!GV47 !ESC/JSK !F1962801C0015 !A!N!*!N! !20010316!20050531!152670030!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!2000 W NASA BLVD !MELBOURNE !FL!32902!43975!009!12!MELBOURNE !BREVARD !FLORIDA !+000038219323!N!N!000000000000!AC64!RDTE/ELECTRONICS & COMMU… Key points: 1. The contract value is $152.7 million, awarded on March 16, 2001, with an end date of September 28, 2007. 2. Northrop Grumman Systems Corporation, a large business, received this contract. 3. The contract was not competed, raising potential concerns about price discovery and value. 4. The sector is Defense, specifically 'Other Communications Equipment Manufacturing'.
Value Assessment
Rating: questionable
The contract value of $152.7 million for 'Other Communications Equipment Manufacturing' is substantial. Without specific unit details or benchmarks for similar 'AN/FSD JOINT STARS' equipment, a direct pricing assessment is difficult. However, the lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was 'NOT COMPETED', indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition in this $152.7 million contract likely resulted in higher costs for taxpayers compared to a competitively awarded contract.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The specific 'AN/FSD JOINT STARS' equipment's necessity and cost-effectiveness are unclear without competitive analysis. Long contract duration (2001-2007) for specialized equipment could indicate evolving technological needs or potential for cost overruns.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency on specific equipment details
Positive Signals
- Awarded to a known defense contractor
- Specific product line identified
Sector Analysis
This contract falls within the Defense sector, specifically in the manufacturing of 'Other Communications Equipment'. Spending in this area is critical for national security, but often involves specialized, high-cost components where competition can be challenging.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the government received fair value. Accountability for the pricing and justification for the sole-source award should be scrutinized.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Limited transparency on specific equipment value
- Long contract duration may indicate cost inefficiencies
- No clear small business participation
Tags
other-communications-equipment-manufactu, department-of-defense, fl, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $460.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200106!000028!5700!GV47 !ESC/JSK !F1962801C0015 !A!N!*!N! !20010316!20050531!152670030!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!2000 W NASA BLVD !MELBOURNE !FL!32902!43975!009!12!MELBOURNE !BREVARD !FLORIDA !+000038219323!N!N!000000000000!AC64!RDTE/ELECTRONICS & COMMUNICATION EQ-DEMO/VALID !A7 !ELECTRONICS AND COMMUNICATION !3GNP!AN/FSD JOINT STARS !334290!*!*!1! ! ! !*!*!*!B!*!*!A! !D !N!L!1!001!N!1G!A!Y!D! ! !N!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! ! ! ! !0001!
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $460.5 million.
What is the period of performance?
Start: 2001-03-16. End: 2007-09-28.
What was the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to understand the specific justification (e.g., unique capabilities, urgent need) and the government's price negotiation and validation process. Without this, it's difficult to assess if fair and reasonable pricing was achieved.
What is the operational significance and current relevance of the 'AN/FSD JOINT STARS' equipment procured under this contract?
The 'AN/FSD JOINT STARS' likely refers to a specific component or system within the Joint STARS program, which provides intelligence, surveillance, and reconnaissance capabilities. Understanding its operational role and whether it has been superseded by newer technology is crucial for assessing the long-term value and effectiveness of this $152.7 million investment.
How does the unit cost, if determinable, compare to similar communication equipment procured by the DoD or other agencies during the same period?
Determining a precise per-unit cost is challenging without more granular data on the quantity of items procured and their specific configurations. However, given the sole-source nature and the lack of competitive benchmarking, it is probable that the unit costs were higher than if the contract had been competed. Further analysis would require detailed procurement records.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2000 W NASA BLVD, MELBOURNE, FL, 32904
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2001-03-16
Current End Date: 2007-09-28
Potential End Date: 2007-09-28 00:00:00
Last Modified: 2015-06-26
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