DoD Awards Northrop Grumman $78.5M for XM1182 HEAB-T Cartridges
Contract Overview
Contract Amount: $78,537,303 ($78.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-26
End Date: 2028-08-31
Contract Duration: 1,435 days
Daily Burn Rate: $54.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 30MM XM1182 HEAB-T CARTRIDGE AWARD
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442
Plain-Language Summary
Department of Defense obligated $78.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 30MM XM1182 HEAB-T CARTRIDGE AWARD Key points: 1. Significant award for advanced ammunition, supporting Army readiness. 2. Northrop Grumman is a major defense contractor, indicating established capabilities. 3. Full and open competition after exclusion of sources suggests a specific justification was needed. 4. The contract spans over three years, indicating a sustained need.
Value Assessment
Rating: good
The award amount of $78.5M for 30MM XM1182 HEAB-T cartridges appears reasonable given the specialized nature of the munition. Benchmarking against similar advanced ordnance contracts would provide further context.
Cost Per Unit: $2,617.91
Competition Analysis
Competition Level: limited
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while competition was sought, specific criteria limited the pool of eligible bidders. This method can impact price discovery if the exclusion is overly restrictive.
Taxpayer Impact: Taxpayer funds are being used for critical defense materiel. The competitive process, even if limited, aims to secure the best value for the government.
Public Impact
Ensures availability of advanced munitions for Army aviation platforms. Supports technological advancement in military ordnance. Contributes to the defense industrial base and associated jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises questions about potential price inflation.
- Long contract duration could be subject to cost overruns.
- Dependence on a single source for critical components.
Positive Signals
- Award to a reputable defense contractor.
- Addresses a specific, high-priority military requirement.
- Clear delivery timeline established.
Sector Analysis
This award falls within the Defense sector, specifically Ammunition Manufacturing. Spending in this area is driven by military readiness requirements and technological upgrades. Benchmarks for similar advanced munition contracts are typically in the millions to billions, depending on quantity and complexity.
Small Business Impact
The awardee, Northrop Grumman Systems Corporation, is a large business. There is no indication of small business participation in this specific award, which is common for highly specialized defense contracts.
Oversight & Accountability
The Department of the Army is responsible for oversight of this contract. The 'after exclusion of sources' clause suggests a need for robust justification and documentation to ensure accountability and prevent sole-source abuse.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may reduce cost savings.
- Long-term contract increases exposure to economic fluctuations.
- Potential for obsolescence if technology advances rapidly.
- Dependence on a single supplier for critical munitions.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mn, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $78.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 30MM XM1182 HEAB-T CARTRIDGE AWARD
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $78.5 million.
What is the period of performance?
Start: 2024-09-26. End: 2028-08-31.
What specific technical or performance requirements led to the exclusion of other potential sources in this competition?
The exclusion of sources likely stems from unique technical specifications, proprietary technology, or specific performance requirements for the XM1182 HEAB-T cartridge that only Northrop Grumman could meet. This could involve advanced materials, unique warhead designs, or integration with specific weapon systems, necessitating a justification for limiting the competitive pool to ensure the government obtains the required capabilities.
How does the per-unit cost of $2,617.91 compare to similar advanced tank-buster rounds in the current defense market?
The per-unit cost of $2,617.91 for the XM1182 HEAB-T cartridge needs to be benchmarked against comparable advanced munitions. Factors like technological sophistication, warhead type (e.g., high-explosive anti-tank), and production volume significantly influence pricing. A detailed market analysis is required to determine if this price represents fair and reasonable value compared to similar, albeit potentially less advanced, ordnance.
What measures are in place to ensure effective delivery and performance throughout the 1435-day contract duration?
Effective oversight by the Department of the Army, including regular progress reviews, quality assurance checks, and performance metrics, will be crucial. Milestones within the delivery schedule and adherence to strict quality control standards for munition production are essential. The firm-fixed-price contract structure also incentivizes the contractor to manage costs and deliver on time to maximize profit.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $78,537,303
Exercised Options: $78,537,303
Current Obligation: $78,537,303
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $3,541,871
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: 2024-09-26
Current End Date: 2028-08-31
Potential End Date: 2028-08-31 12:08:00
Last Modified: 2025-11-18
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