DoD's Ground Segment Modernization Program Faces Significant Investment

Contract Overview

Contract Amount: $466,756,074 ($466.8M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2016-07-01

End Date: 2026-01-30

Sector: Defense

Official Description: ACAT II, GROUND SEGMENT MODERNIZATION PROGRAM (GSMP)

Plain-Language Summary

Department of Defense obligated $466.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ACAT II, GROUND SEGMENT MODERNIZATION PROGRAM (GSMP) Key points: 1. Substantial federal investment allocated to modernizing ground systems. 2. Sole-source contract awarded to Northrop Grumman Systems Corporation. 3. Potential risks associated with single-vendor reliance and program duration. 4. Modernization aims to enhance critical defense infrastructure.

Value Assessment

Rating: good

The Department of Defense has committed over $466 million to the Ground Segment Modernization Program (GSMP). This significant investment underscores the importance of updating critical defense infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis to Northrop Grumman Systems Corporation. This approach may limit competition but could streamline execution for a complex, specialized program.

Taxpayer Impact: Taxpayer funds are directed to a single contractor for a critical modernization effort.

Public Impact

Ensures continued operational capability for essential defense systems. Supports advanced technological integration for national security. Potential for job creation within the defense technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single contractor could lead to cost overruns or delays.
Technological obsolescence if modernization does not keep pace with evolving threats.
Program duration extends over a decade, increasing exposure to market shifts.

Positive Signals

Modernization addresses aging infrastructure, improving reliability.
Program supports advanced capabilities for the Air Force.
Clear objective to enhance critical defense systems.

Sector Analysis

This program falls within the defense sector, focusing on the modernization of essential ground-based systems that support satellite operations and command and control. Such initiatives are crucial for maintaining technological superiority and operational readiness.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no small business participation. This suggests the primary contractor is a large entity handling the majority of the work.

Oversight & Accountability

The ACAT II designation indicates a program of significant importance and cost, subject to rigorous oversight. The extended duration and sole-source nature warrant close monitoring of performance and expenditures.

Related Government Programs

Ground Segment Modernization Program (GSMP)
Department of the Air Force Systems

Risk Flags

Sole-source award
Long program duration
ACAT II program

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $466.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ACAT II, GROUND SEGMENT MODERNIZATION PROGRAM (GSMP)

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 Air Force).

What is the total obligated amount?

The obligated amount is $466.8 million.

What is the period of performance?

Start: 2016-07-01. End: 2026-01-30.

Analysis insight 1

The program's ACAT II classification highlights its strategic importance and substantial financial commitment.

Analysis insight 2

The sole-source award to Northrop Grumman warrants scrutiny regarding competitive fairness and long-term value.

Analysis insight 3

The extended timeline from 2016 to 2026 suggests a complex, multi-phase modernization effort.