Northrop Grumman Systems Corp. has been granted a $34,388,301 contract modification by the U.S. Department of War to increase the ceiling on an existing firm-fixed-price indefinite-delivery/indefinite-quantity (IDIQ) contract. The modification, awarded on Tuesday, expands the procurement of Link-16 integration kits and associated spare components for Marine Corps rotary-wing platforms.
Specifically, the contract quantities will increase by eight UH-1Y Link-16 A Kits, nine AH-1Z Link-16 A Kits and 17 Link-16 B Kits. The scope of the modification also encompasses spare parts as well as related activities such as systems engineering, program management and logistics support.
Work under the modification will be performed at multiple locations across the United States, with Chicago, Illinois designated to receive 23% of the effort, Woodland Hills, California 22% and Salt Lake City, Utah 20%. Additional locations and their respective shares include San Diego, California (9%), Rancho Cucamonga, California (8%), Huntsville, Alabama (8%), Dallas, Texas (5%), Scottsdale, Arizona (2%), Rochester, New York (1%), and other locations accounting for 2% of the work.
The timeline for completion of the tasks under this modification is March 2027. At the time the modification was awarded, no funds were obligated; funding will be provided on individual orders as they are issued under the IDIQ vehicle. The modification was awarded on a non-competitive basis.
The Naval Air Systems Command in Patuxent River, Maryland, is listed as the contracting activity for this award, which is identified by contract number N0001924D0123.
Summary
- Northrop Grumman received a $34,388,301 modification from the U.S. Department of War to increase the ceiling on a firm-fixed-price IDIQ contract.
- The modification adds eight UH-1Y Link-16 A Kits, nine AH-1Z Link-16 A Kits, 17 Link-16 B Kits, and spare parts plus systems engineering, program management and logistics support.
- Work will be distributed across multiple U.S. locations and is scheduled for completion by March 2027; no funds were obligated at award and the contract was not competed.
Key points
- Contract value and scope - The modification increases the IDIQ contract ceiling by $34,388,301 to supply additional Link-16 A- and B-Kits and spares for UH-1Y and AH-1Z helicopters.
- Geographic distribution - Work is allocated across several U.S. sites, with Chicago, Woodland Hills and Salt Lake City receiving the largest portions of effort, indicating a dispersed production and support footprint that touches defense manufacturing and logistics sectors.
- Funding and procurement structure - No funds were obligated at the time of award; funding will be applied as individual orders are placed, and the award was made without competition.
Risks and uncertainties
- Funding timing - Because no funds were obligated at the time of the modification, the actual flow of funding depends on future individual orders, introducing uncertainty for budget timing. (Impacted sectors: defense contracting, government procurement)
- Non-competitive award - The contract modification was not competed, which could carry programmatic or oversight scrutiny and affects procurement dynamics in the defense sector. (Impacted sectors: defense procurement, contractors)
- Distributed execution - With work allocated across numerous locations, coordination of systems engineering, logistics support and parts production must be managed across sites; execution complexity could pose operational challenges. (Impacted sectors: aerospace manufacturing, logistics)