DoD's $209M Joint Threat Emitter Contract Awarded to Northrop Grumman Under Full and Open Competition

Contract Overview

Contract Amount: $208,961,946 ($209.0M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2013-09-09

End Date: 2019-06-27

Contract Duration: 2,117 days

Daily Burn Rate: $98.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: JOINT THREAT EMITTER (JTE)

Place of Performance

Location: BUFFALO, ERIE County, NEW YORK, 14221

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $209.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: JOINT THREAT EMITTER (JTE) Key points: 1. Significant investment in advanced defense systems. 2. Northrop Grumman, a major defense contractor, secured the award. 3. Full and open competition suggests a competitive bidding process. 4. The contract spans multiple years, indicating a long-term need.

Value Assessment

Rating: good

The contract value of $209 million over approximately 6 years appears reasonable given the specialized nature of the Joint Threat Emitter system. Benchmarking against similar complex defense systems is difficult without more specific cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method is expected to drive competitive pricing and ensure the government receives fair value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely benefiting from a price discovery process that aims for efficiency.

Public Impact

Enhances military training and readiness by simulating advanced threats. Supports the development and deployment of sophisticated electronic warfare capabilities. Contributes to the technological superiority of U.S. defense forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the defense sector, specifically focusing on electronic warfare and simulation systems. Spending in this area is critical for maintaining military technological advantage and readiness against evolving threats.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial to ensure performance, quality, and adherence to contract terms.

Related Government Programs

Risk Flags

Tags

search-detection-navigation-guidance-aer, department-of-defense, ny, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $209.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. JOINT THREAT EMITTER (JTE)

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 $209.0 million.

What is the period of performance?

Start: 2013-09-09. End: 2019-06-27.

What is the specific technological advancement this Joint Threat Emitter provides over previous systems, and how does it justify the $209 million investment?

The Joint Threat Emitter (JTE) likely provides advanced capabilities in simulating a wider range of sophisticated enemy radar and electronic warfare threats. This allows for more realistic and effective training scenarios for military personnel, enhancing their preparedness against modern adversaries. The investment is justified by the need to maintain a technological edge and ensure combat readiness in a rapidly evolving threat landscape.

What are the primary risks associated with the long-term sustainment and potential obsolescence of the JTE system, given its 2013 award date?

The primary risks include the potential for the JTE system to become technologically obsolete as threat environments evolve, requiring costly upgrades or replacements. Long-term sustainment could also face challenges if key components become difficult to source or if the original manufacturer's support diminishes. Ensuring ongoing modernization and maintaining a robust supply chain are critical to mitigating these risks over the contract's lifespan.

How effectively does the firm fixed price contract type mitigate cost overruns for the government on this complex system?

The Firm Fixed Price (FFP) contract type is designed to transfer most of the cost risk to the contractor, Northrop Grumman. This means the government pays a set price regardless of the contractor's actual costs. While FFP is generally effective in controlling costs, complex defense systems can still experience cost overruns if unforeseen technical challenges arise, leading to contract modifications or disputes. However, it provides a strong baseline for cost predictability.

Industry Classification

NAICS: ManufacturingNavigational, Measuring, Electromedical, and Control Instruments ManufacturingSearch, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 1740 WEHRLE DR, BUFFALO, NY, 14221

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: $231,628,874

Exercised Options: $208,969,075

Current Obligation: $208,961,946

Actual Outlays: $6,022,945

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2013-09-09

Current End Date: 2019-06-27

Potential End Date: 2019-06-27 00:00:00

Last Modified: 2025-09-16

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