DoD awards $56.6M for 20MM PGU-27 ammunition to Northrop Grumman, with full and open competition
Contract Overview
Contract Amount: $56,584,767 ($56.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-09-24
End Date: 2022-11-30
Contract Duration: 1,528 days
Daily Burn Rate: $37.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 20MM PGU-27 DELIVERY ORDER AWARD.
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442
Plain-Language Summary
Department of Defense obligated $56.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 20MM PGU-27 DELIVERY ORDER AWARD. Key points: 1. The award represents a significant investment in ammunition manufacturing. 2. Northrop Grumman is a major defense contractor, indicating established capabilities. 3. The contract type (firm fixed price) aims to control costs. 4. Competition was conducted after exclusion of sources, requiring justification.
Value Assessment
Rating: good
The award value of $56.6 million for 20MM PGU-27 ammunition appears reasonable given the supplier and contract type. Benchmarking against similar ammunition 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.' This suggests that while competition was sought, specific sources were initially excluded, potentially impacting the breadth of price discovery.
Taxpayer Impact: The firm fixed price contract aims to ensure cost certainty for taxpayers, but the limited competition aspect warrants scrutiny to ensure optimal value.
Public Impact
Ensures supply of critical ammunition for military operations. Supports a major defense contractor and its supply chain. Potential impact on availability and cost of similar munitions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition justification
- Potential for price escalation if competition was truly restricted
Positive Signals
- Firm fixed price contract
- Award to established defense contractor
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending benchmarks for similar munitions contracts would be necessary for a precise comparison.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as the prime contractor is Northrop Grumman Systems Corporation. Further analysis would be needed to determine small business subcontracting opportunities.
Oversight & Accountability
The 'exclusion of sources' clause requires careful oversight to ensure fair competition and prevent undue restrictions. The Department of the Army's procurement process should be transparent.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Potential lack of price transparency
- Reliance on a single large contractor
- Justification for source exclusion needs verification
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 $56.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 20MM PGU-27 DELIVERY ORDER 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 $56.6 million.
What is the period of performance?
Start: 2018-09-24. End: 2022-11-30.
What was the specific justification for excluding sources in the full and open competition?
The justification for excluding sources requires detailed review of the contract's documentation. Typically, such exclusions are based on factors like proprietary technology, unique capabilities, or specific security requirements that limit the pool of eligible contractors. Understanding this rationale is crucial for assessing the fairness of the competition.
What is the projected cost per unit for the PGU-27 ammunition?
The provided data does not explicitly state the cost per unit. To determine this, the total award amount ($56,584,766.97) would need to be divided by the number of units procured. Without the quantity, a per-unit cost benchmark cannot be established, hindering a direct value assessment against industry standards.
How does this contract's pricing compare to historical awards for similar ammunition?
A comprehensive comparison requires access to historical pricing data for PGU-27 or comparable 20MM ammunition rounds. Factors such as inflation, material costs, and contract volume influence pricing. Without this comparative data, it's difficult to definitively assess if this $56.6 million award represents optimal value for the taxpayer.
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
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 4700 NATHAN LN N, PLYMOUTH, 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: $56,584,767
Exercised Options: $56,584,767
Current Obligation: $56,584,767
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J18D0092
IDV Type: IDC
Timeline
Start Date: 2018-09-24
Current End Date: 2022-11-30
Potential End Date: 2022-11-30 12:11:00
Last Modified: 2023-07-25
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