DoD awards Northrop Grumman $273.5M for XM1211 HE Proximity Cartridges for XM914 Chain Gun
Contract Overview
Contract Amount: $273,530,052 ($273.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-05-14
End Date: 2027-09-30
Contract Duration: 1,234 days
Daily Burn Rate: $221.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: LIGHTWEIGHT 30 XM1211 HIGH EXPLOSIVE PROXIMITY (HEP) CARTRIDGES. THE LIGHTWEIGHT (LW) 30MM XM1211 HIGH EXPLOSIVE PROXIMITY (HEP) URGENT MATERIEL RELEASE CARTRIDGE SUPPORTS GROUND-BASED PLATFORMS UTILIZING THE XM914 CHAIN GUN.
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442
Plain-Language Summary
Department of Defense obligated $273.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LIGHTWEIGHT 30 XM1211 HIGH EXPLOSIVE PROXIMITY (HEP) CARTRIDGES. THE LIGHTWEIGHT (LW) 30MM XM1211 HIGH EXPLOSIVE PROXIMITY (HEP) URGENT MATERIEL RELEASE CARTRIDGE SUPPORTS GROUND-BASED PLATFORMS UTILIZING THE XM914 CHAIN GUN. Key points: 1. The contract is for critical ammunition supporting ground-based platforms. 2. Northrop Grumman is the sole awardee, raising questions about competition. 3. The contract value is substantial, requiring careful oversight. 4. The ammunition type suggests a focus on modernizing combat capabilities.
Value Assessment
Rating: good
The contract value of $273.5M for specialized ammunition appears reasonable given the technical requirements and the sole-source nature of the award. Benchmarking against similar advanced ordnance contracts would provide further validation.
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. This approach may have impacted price discovery, potentially leading to higher costs than a fully open process.
Taxpayer Impact: Taxpayers are funding advanced munitions for military platforms. The limited competition aspect warrants scrutiny to ensure cost-effectiveness.
Public Impact
Enhances firepower for ground-based military platforms. Supports modernization of combat systems utilizing the XM914 Chain Gun. Ensures supply of critical ammunition for defense operations. Potential for increased effectiveness in combat scenarios.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises cost concerns.
- Sole awardee may reduce innovation incentives.
- Economic price adjustment clause could increase final cost.
Positive Signals
- Addresses urgent materiel release requirement.
- Supports critical defense platform functionality.
- Award to established defense contractor.
Sector Analysis
This spending falls within the defense sector, specifically ammunition manufacturing. Benchmarks for similar advanced ordnance contracts are difficult to ascertain publicly but are typically high due to R&D and specialized manufacturing.
Small Business Impact
The awardee, Northrop Grumman Systems Corporation, is a large business. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for oversight. The 'urgent materiel release' designation suggests a need for expedited processes, which can sometimes bypass standard oversight.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition
- Sole awardee
- Economic price adjustment
- Urgent materiel release status
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mn, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $273.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LIGHTWEIGHT 30 XM1211 HIGH EXPLOSIVE PROXIMITY (HEP) CARTRIDGES. THE LIGHTWEIGHT (LW) 30MM XM1211 HIGH EXPLOSIVE PROXIMITY (HEP) URGENT MATERIEL RELEASE CARTRIDGE SUPPORTS GROUND-BASED PLATFORMS UTILIZING THE XM914 CHAIN GUN.
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 $273.5 million.
What is the period of performance?
Start: 2024-05-14. End: 2027-09-30.
What was the justification for excluding other sources, and what analysis was performed to ensure fair and reasonable pricing under limited competition?
The justification for excluding other sources is critical given the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation. A thorough review of the source selection documentation is needed to understand the technical or proprietary reasons for this limitation. Furthermore, the agency must demonstrate that a robust price analysis was conducted to ensure the negotiated price was fair and reasonable, despite the lack of direct competition.
What are the specific performance risks associated with the XM1211 cartridge, and how are they being mitigated by the contractor and the DoD?
Performance risks for advanced munitions like the XM1211 cartridge could include reliability issues, premature detonation, or failure to achieve desired effects. Mitigation strategies likely involve rigorous testing protocols, quality assurance measures during manufacturing, and clear performance specifications outlined in the contract. The 'urgent materiel release' status might imply some risks were accepted for speed, necessitating close monitoring post-delivery.
How does the integration of the XM1211 cartridge into the XM914 Chain Gun contribute to overall combat effectiveness and justify the investment?
The XM1211 cartridge is designed to enhance the lethality and versatility of the XM914 Chain Gun, a key component on various ground platforms. Its High Explosive Proximity (HEP) capability likely offers improved target effect against personnel and light armored vehicles. The investment is justified if it provides a significant tactical advantage, fills a critical capability gap, and demonstrably improves mission success rates compared to existing munitions.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W519TC23R0004
Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 4700 NATHAN LN N, MINNEAPOLIS, MN, 55442
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: $273,530,052
Exercised Options: $273,530,052
Current Obligation: $273,530,052
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $41,476,172
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W519TC24D0007
IDV Type: IDC
Timeline
Start Date: 2024-05-14
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-12-11
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