Northrop Grumman awarded $6.3M contract for Ultra-Wide Bandgap Semiconductors R&D by Department of the Interior
Contract Overview
Contract Amount: $6,321,965 ($6.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of the Interior
Start Date: 2024-08-09
End Date: 2026-08-08
Contract Duration: 729 days
Daily Burn Rate: $8.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 25
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ULTRA-WIDE BANDGAP SEMICONDUCTORS (UWBGS)
Place of Performance
Location: REDONDO BEACH, LOS ANGELES County, CALIFORNIA, 90278
Plain-Language Summary
Department of the Interior obligated $6.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ULTRA-WIDE BANDGAP SEMICONDUCTORS (UWBGS) Key points: 1. Contract focuses on advanced semiconductor research, a critical area for future technological development. 2. Full and open competition suggests a robust market for these specialized research services. 3. The contract duration of 729 days allows for significant progress in R&D. 4. Research and Development in Physical, Engineering, and Life Sciences is a key government investment area. 5. The award to Northrop Grumman, a major defense contractor, indicates confidence in their R&D capabilities. 6. The contract type (Cost Plus Fixed Fee) is common for R&D where final costs may be uncertain.
Value Assessment
Rating: good
The contract value of $6.3 million for R&D in a specialized field like UWBGS appears reasonable given the contractor's expertise and the project's scope. Benchmarking against similar R&D contracts in advanced materials and semiconductors would provide a more precise value-for-money assessment. However, the fixed fee component suggests a degree of cost control is built into the pricing structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 25 bids suggests a healthy level of interest and competition within the specialized field of UWBGS research. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among bidders.
Public Impact
This contract supports advancements in semiconductor technology, potentially leading to next-generation electronic devices. The research is expected to benefit the broader scientific and technological community through knowledge dissemination. The geographic impact is primarily within California, where Northrop Grumman's research facilities are likely located. This contract may indirectly support a highly skilled workforce in specialized R&D fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not managed diligently.
- Dependence on a single large contractor for critical R&D could pose long-term supply chain risks if not diversified.
Positive Signals
- Award to a reputable contractor with a strong track record in complex R&D projects.
- The competitive nature of the award suggests a well-defined scope and achievable objectives.
- Focus on a cutting-edge technology area aligns with national strategic interests.
Sector Analysis
The Ultra-Wide Bandgap Semiconductors (UWBGS) market is a niche but rapidly growing segment within the broader semiconductor industry, driven by demand for high-power, high-frequency, and high-temperature applications. This contract fits within the Research and Development sector, specifically focusing on advanced materials science and engineering. Comparable spending in this area is difficult to pinpoint due to its specialized nature, but government investment in advanced materials is a strategic priority across multiple agencies.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The focus on highly specialized R&D in UWBGS may limit the direct participation of small businesses unless they are key innovators in this specific niche.
Oversight & Accountability
Oversight will likely be managed by the Department of the Interior's contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates close monitoring of costs and progress to ensure adherence to the fixed fee and overall budget. Transparency will depend on the agency's reporting practices for R&D contracts.
Related Government Programs
- Department of Defense Research and Development
- National Science Foundation Research Grants
- Department of Energy Advanced Materials Initiatives
Risk Flags
- Cost Overrun Risk (CPFF Contract)
- Technological Obsolescence
- Dependency on Key Personnel
Tags
research-and-development, department-of-the-interior, northrop-grumman-systems-corporation, california, definitive-contract, full-and-open-competition, cost-plus-fixed-fee, semiconductors, advanced-materials, scientific-research
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $6.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ULTRA-WIDE BANDGAP SEMICONDUCTORS (UWBGS)
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $6.3 million.
What is the period of performance?
Start: 2024-08-09. End: 2026-08-08.
What is Northrop Grumman's track record in semiconductor research and development?
Northrop Grumman has a significant history in advanced materials and electronics, including work on semiconductor technologies relevant to defense and aerospace applications. While specific details on their UWBGS research portfolio may be proprietary, their extensive experience in complex R&D projects, coupled with their status as a major defense contractor, suggests a strong capability. They have been involved in developing materials for high-performance computing, advanced sensors, and power electronics, which often intersect with UWBGS research. The company's substantial investment in internal R&D and its numerous government contracts in related fields indicate a robust foundation for undertaking this UWBGS project.
How does the $6.3 million award compare to typical R&D spending in this specific semiconductor niche?
The $6.3 million award for Ultra-Wide Bandgap Semiconductors (UWBGS) research is a moderate-sized contract within the broader R&D landscape. Specific benchmarks for UWBGS are challenging to establish due to its specialized and emerging nature. However, compared to large-scale semiconductor manufacturing investments or broader materials science programs, this figure is typical for focused, multi-year research initiatives. Government agencies like the Department of Defense, Department of Energy, and NSF often fund similar projects in the range of several million dollars to explore foundational science and early-stage technology development. The value suggests a project with defined research objectives rather than a massive, long-term development program.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?
The primary risks with a CPFF contract, especially in R&D, revolve around cost control and scope creep. While the fixed fee provides a ceiling for the contractor's profit, the 'cost plus' portion means the government bears the risk of actual costs exceeding estimates. In R&D, where outcomes can be uncertain and technical challenges unpredictable, there's a risk that costs could escalate significantly. Effective oversight is crucial to ensure that all incurred costs are reasonable, allocable, and allowable. Another risk is that the contractor might prioritize activities that maximize cost recovery over achieving the most efficient research outcomes, although the fixed fee is intended to mitigate this by incentivizing completion within budget parameters.
What is the expected program effectiveness and impact of this UWBGS research?
The expected effectiveness of this UWBGS research program is to advance the fundamental understanding and potential applications of ultra-wide bandgap semiconductor materials. These materials promise superior performance characteristics (higher voltage, frequency, and temperature operation) compared to current silicon-based technologies. Potential impacts include enabling more efficient power electronics, faster communication systems, advanced sensors, and ruggedized devices for harsh environments. The Department of the Interior's interest suggests potential applications in areas like resource management, environmental monitoring, or infrastructure resilience where advanced sensing or power systems could be beneficial. Success hinges on overcoming material synthesis challenges and demonstrating practical device fabrication.
What are the historical spending patterns for R&D in advanced materials by the Department of the Interior?
The Department of the Interior's historical spending on R&D in advanced materials, while not as extensive as agencies like the Department of Defense or Energy, is present and often tied to specific mission needs. Their investments typically focus on materials relevant to natural resource management, environmental science, geological surveys, and infrastructure resilience. This might include research into corrosion-resistant coatings for infrastructure, advanced sensors for environmental monitoring, or materials for energy efficiency in departmental facilities. While specific aggregate data for 'advanced materials' R&D spending by DOI is not readily available in public databases, individual contracts for specialized research, like this UWBGS award, indicate a targeted approach to acquiring cutting-edge technological capabilities relevant to their operational mandates.
How does the competition level (25 bidders) influence the value and innovation for this R&D contract?
A high level of competition, with 25 bidders for this UWBGS R&D contract, generally signals a robust and accessible market for these specialized research services. This intense competition is beneficial for the government as it typically drives down prices and encourages bidders to offer innovative solutions and demonstrate superior technical merit to win the award. For taxpayers, it means their funds are more likely to be allocated to the most capable and cost-effective provider. Furthermore, a competitive environment can spur innovation not only among the winning contractor but also among the unsuccessful bidders, who may refine their approaches for future opportunities. This level of engagement suggests the government's requirements were clearly defined and attractive to a broad range of research entities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HR001123S0051
Offers Received: 25
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1 SPACE PARK BLVD, REDONDO BEACH, CA, 90278
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: $9,660,380
Exercised Options: $8,656,710
Current Obligation: $6,321,965
Actual Outlays: $3,705,665
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $1,389,680
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2024-08-09
Current End Date: 2026-08-08
Potential End Date: 2027-08-08 00:00:00
Last Modified: 2025-12-16
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