DoD's $36.5M Global Hawk SIGINT Payload Integration Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $36,521,945 ($36.5M)
Contractor: Northrop Grumman Space & Mission Systems Corp.
Awarding Agency: Department of Defense
Start Date: 2015-04-29
End Date: 2017-05-28
Contract Duration: 760 days
Daily Burn Rate: $48.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: GLOBAL HAWK BLOCK 30 AIRBORNE SIGNALS INTELLIGENCE PAYLOAD INCREMENT 1 INTEGRATION
Place of Performance
Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95119
Plain-Language Summary
Department of Defense obligated $36.5 million to NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP. for work described as: GLOBAL HAWK BLOCK 30 AIRBORNE SIGNALS INTELLIGENCE PAYLOAD INCREMENT 1 INTEGRATION Key points: 1. Significant investment in advanced airborne intelligence capabilities. 2. Sole-source award raises questions about competition and potential cost savings. 3. Contract duration of 760 days suggests a complex integration process. 4. Focus on signals intelligence highlights evolving defense needs.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the $36.5 million price reflects fair market value for the integration services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially increases costs for taxpayers as there was no market pressure to drive down the price.
Taxpayer Impact: The lack of competition may result in a higher price than if multiple vendors had vied for the contract, impacting overall taxpayer value.
Public Impact
Enhances critical intelligence, surveillance, and reconnaissance (ISR) capabilities for the Department of Defense. Supports national security objectives by improving the collection and analysis of signals intelligence. Potential for follow-on contracts related to payload integration and upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can incentivize higher spending.
- Lack of clear justification for sole-source award.
Positive Signals
- Addresses critical defense intelligence needs.
- Leverages existing platform (Global Hawk).
Sector Analysis
This contract falls within the Defense sector, specifically related to aerospace and defense electronics manufacturing. Spending benchmarks for similar complex integration projects can vary widely, but sole-source awards often deviate from competitive norms.
Small Business Impact
The data indicates this contract was awarded to a large corporation, Northrop Grumman. 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 Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial for CPFF contracts to ensure costs remain reasonable and the scope of work is met effectively.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding.
- Potential for cost overruns with CPFF contract.
- Limited transparency on sole-source justification.
- High contract value for integration services.
Tags
other-communications-equipment-manufactu, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.5 million to NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP.. GLOBAL HAWK BLOCK 30 AIRBORNE SIGNALS INTELLIGENCE PAYLOAD INCREMENT 1 INTEGRATION
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $36.5 million.
What is the period of performance?
Start: 2015-04-29. End: 2017-05-28.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent need, or lack of viable alternatives. Without specific documentation, it's presumed that Northrop Grumman possessed proprietary technology or expertise essential for the Global Hawk Block 30 SIGINT payload integration that other firms could not readily provide.
How will the Cost Plus Fixed Fee (CPFF) structure be managed to mitigate potential cost overruns and ensure value for money?
Effective management of a CPFF contract requires stringent oversight of incurred costs, regular audits, and clear definition of the fixed fee. The Defense Contract Management Agency (DCMA) would monitor expenditures against the estimated cost, ensuring that only allowable costs are reimbursed and that the contractor remains incentivized to control spending within the agreed-upon parameters.
What are the key performance metrics and deliverables for this payload integration increment, and how will their successful completion be measured?
Key performance metrics would likely include successful integration of the SIGINT payload with the Global Hawk Block 30 platform, meeting specified operational requirements, and achieving defined performance standards for signal detection and processing. Deliverables would include the integrated system, technical documentation, test reports, and potentially training materials. Success would be measured through rigorous testing and validation phases.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 6377 SAN IGNACIO AVE, SAN JOSE, CA, 95119
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: $37,520,603
Exercised Options: $37,520,603
Current Obligation: $36,521,945
Subaward Activity
Number of Subawards: 334
Total Subaward Amount: $274,676,683
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862013G3015
IDV Type: BOA
Timeline
Start Date: 2015-04-29
Current End Date: 2017-05-28
Potential End Date: 2017-05-28 00:00:00
Last Modified: 2022-11-14
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