DoD awards $71M for MK244-0 APDS Linked Cartridges to Northrop Grumman
Contract Overview
Contract Amount: $71,003,084 ($71.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2019-05-30
End Date: 2025-09-30
Contract Duration: 2,315 days
Daily Burn Rate: $30.7K/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 MK244-0 APDS LINKED CARTRIDGE, NSN: 1305-01-484-9674
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442
Plain-Language Summary
Department of Defense obligated $71.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 20MM MK244-0 APDS LINKED CARTRIDGE, NSN: 1305-01-484-9674 Key points: 1. Significant contract value of $71M for specialized ammunition. 2. Northrop Grumman, a major defense contractor, is the awardee. 3. Contract spans nearly 2.5 years, indicating sustained demand. 4. Ammunition manufacturing sector with potential for supply chain risks.
Value Assessment
Rating: good
The total award of $71M appears reasonable for the specified quantity and type of ammunition over the contract period. Benchmarking against similar defense contracts for specialized munitions would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method may impact price discovery and potentially lead to higher costs compared to full and open competition.
Taxpayer Impact: Taxpayer funds are allocated for essential defense materiel. The limited competition aspect warrants scrutiny to ensure cost-effectiveness.
Public Impact
Ensures readiness of military forces by providing critical ammunition. Supports a key defense contractor and its manufacturing capabilities. Impacts the defense industrial base and supply chain for munitions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate costs.
- Long contract duration could be subject to price fluctuations.
- Dependence on a single supplier for critical ammunition.
Positive Signals
- Secures a vital defense supply.
- Supports established defense manufacturing.
- Clear delivery timeline.
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending benchmarks for similar specialized munitions contracts are difficult to ascertain publicly but are typically substantial given the technical requirements and production scale.
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, which is common for large-scale defense manufacturing contracts.
Oversight & Accountability
The Department of the Army awarded this contract, implying oversight through its contracting and procurement processes. Further oversight would involve monitoring delivery schedules, quality control, and adherence to contract terms.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Potential for cost overruns
- Supply chain dependency
- Long contract duration
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 $71.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 20MM MK244-0 APDS LINKED CARTRIDGE, NSN: 1305-01-484-9674
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 $71.0 million.
What is the period of performance?
Start: 2019-05-30. End: 2025-09-30.
What is the specific justification for excluding other sources in this limited competition?
The justification for excluding other sources is not provided in the data. Typically, such exclusions are based on factors like proprietary technology, unique manufacturing capabilities, or urgent requirements where only one source can meet the need within the necessary timeframe. A detailed review of the contract's Justification for Other than Full and Open Competition (JOFOC) would be required.
How does the per-unit cost compare to historical or similar ammunition procurements?
Without historical data or benchmarks for the MK244-0 APDS Linked Cartridge, a direct per-unit cost comparison is not possible. The total award of $71M over the contract duration suggests a significant investment. Analyzing the quantity of rounds procured would be necessary to estimate a per-unit cost for comparison against industry standards or previous contracts.
What are the potential risks associated with a sole-source or limited-source award for critical ammunition?
The primary risks include reduced price competition leading to higher costs for taxpayers, potential complacency from the awarded contractor regarding innovation or efficiency, and vulnerability in the supply chain if the contractor faces production issues or business disruptions. It also limits opportunities for other capable manufacturers to compete and potentially offer better value.
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: $71,003,084
Exercised Options: $71,003,084
Current Obligation: $71,003,084
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: 2019-05-30
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 12:09:00
Last Modified: 2025-11-26
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