DoD's $38.8M ICBM Launch Control Upgrade R&D Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $38,841,961 ($38.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2015-09-30
End Date: 2020-09-30
Contract Duration: 1,827 days
Daily Burn Rate: $21.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: IGF::CT::IGF ICBM LAUNCH CONTROL CENTER BLOCK UPGRADE RESEARCH AND DEVELOPMENT
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $38.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::CT::IGF ICBM LAUNCH CONTROL CENTER BLOCK UPGRADE RESEARCH AND DEVELOPMENT Key points: 1. Significant investment in critical defense infrastructure. 2. Sole awardee suggests potential for limited competition or specialized expertise. 3. Cost-plus contract type carries inherent risk of cost overruns. 4. Focus on R&D indicates early-stage development with uncertain outcomes.
Value Assessment
Rating: questionable
The contract is for R&D, making direct pricing comparisons difficult. The cost-plus incentive fee structure allows for costs to exceed initial estimates, especially given the long duration and complexity of ICBM systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open, the award to a single entity, Northrop Grumman, raises questions about the actual competitive landscape. The pricing mechanism (CPIF) may not have fully incentivized the lowest possible cost given the lack of robust competition.
Taxpayer Impact: Taxpayer funds are allocated to a high-priority but potentially costly defense project. The effectiveness of the R&D and the final system cost will determine the ultimate value for taxpayers.
Public Impact
Modernization of critical nuclear command and control systems. Potential impact on national security and deterrence capabilities. Long-term implications for defense spending and technological advancement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Overruns Risk (CPIF contract)
- Limited Competition Evidence
- Long Project Duration
- R&D Uncertainty
Positive Signals
- Critical National Security Investment
- Potential for Technological Advancement
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense systems. Spending in this area is often characterized by high complexity, long procurement cycles, and significant R&D investment, with benchmarks varying widely based on system criticality.
Small Business Impact
No indication of small business participation in this specific award. Large defense contracts often involve complex subcontracting, but direct involvement of SMBs in prime roles for such specialized R&D is less common.
Oversight & Accountability
The Department of Defense, through its agencies like DCMA, is responsible for oversight. However, the nature of R&D and cost-plus contracts requires diligent monitoring to ensure cost efficiency and program effectiveness.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Overruns
- Limited Competition
- R&D Uncertainty
- Long-Term Project Viability
- National Security Reliance
Tags
engineering-services, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::CT::IGF ICBM LAUNCH CONTROL CENTER BLOCK UPGRADE RESEARCH AND DEVELOPMENT
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $38.8 million.
What is the period of performance?
Start: 2015-09-30. End: 2020-09-30.
What is the projected final cost of the ICBM Launch Control Center Block Upgrade, and how does it compare to similar modernization efforts?
The current contract value is $38.8 million, but as a cost-plus incentive fee R&D contract, the final cost is not fixed and could significantly exceed this amount. A comprehensive analysis would require access to program projections, cost performance reports, and comparisons with historical data for similar complex defense system upgrades.
What specific risks are associated with the 'full and open' competition designation given the sole award to Northrop Grumman?
The designation 'full and open' implies broad solicitation, but a sole award suggests either a lack of responsive bidders or that Northrop Grumman possessed unique qualifications. This raises concerns about whether the government truly received the best value and competitive pricing, or if market barriers limited participation.
How will the effectiveness of this R&D investment be measured, and what are the key performance indicators for the upgrade?
Effectiveness will likely be measured against specific technical requirements and performance benchmarks defined in the contract's SOW. Key indicators could include system reliability, security enhancements, operational readiness, and successful integration with existing ICBM infrastructure. Formal testing and validation phases will be crucial.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,539,600
Exercised Options: $43,274,425
Current Obligation: $38,841,961
Subaward Activity
Number of Subawards: 975
Total Subaward Amount: $145,735,446
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA821415D0001
IDV Type: IDC
Timeline
Start Date: 2015-09-30
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2022-04-08
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