DoD Awards $197.8M for Defense Support Systems, Northrop Grumman Systems Corp. Selected
Contract Overview
Contract Amount: $620,622,319 ($620.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 1997-07-24
End Date: 2007-12-31
Contract Duration: 3,812 days
Daily Burn Rate: $162.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 199711!5700!0053!GZ39 !SMC/PKZ DEFENSE SUPPORT SYS DIR !F0470193C0001 !A!*!P00038 !19970724!20011231!197859408!197859408!004179453!N!11982!TRW INC !1 SPACE PARK BLVD !REDONDO BEACH !CA!90278!60018!037!06!REDONDO BEACH !LOS ANGELES !CALIFORNIA!0001!+000001463598!N!N!000000000000!AC25!RDTE/MISSILE AND SPACE SYSTEMS-ENG/MANUF DEVEL !A2 !MISSILE AND SPACE SYSTEMS !3GYL!DEFENSE SUPPORT PROGRAM !3761!3!*!*!C!B!A!*!A !N!L!2!002!N!1B!A!Y!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: REDONDO BEACH, LOS ANGELES County, CALIFORNIA, 90278
Plain-Language Summary
Department of Defense obligated $620.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 199711!5700!0053!GZ39 !SMC/PKZ DEFENSE SUPPORT SYS DIR !F0470193C0001 !A!*!P00038 !19970724!20011231!197859408!197859408!004179453!N!11982!TRW INC !1 SPACE PARK BLVD !REDONDO BEACH !CA!90278!60018!037!06!REDONDO BEACH !LOS AN… Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for defense support systems. 2. The contract value is $197,859,408, with a period of performance from July 1997 to December 2001. 3. This award falls under the Guided Missile and Space Vehicle Manufacturing sector. 4. The contract was awarded using full and open competition, indicating a competitive bidding process.
Value Assessment
Rating: good
The contract value of $197.8 million appears reasonable for a defense support systems contract of this nature. Benchmarking against similar large-scale defense system development and manufacturing contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting that multiple bidders had the opportunity to compete. This method generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently, securing the best possible value for the defense support systems procured.
Public Impact
Supports critical defense infrastructure and national security objectives. Contributes to the technological advancement in missile and space systems. Potential for job creation and economic impact in California. Ensures the availability of specialized defense support services.
Waste & Efficiency Indicators
Waste Risk Score: 65 / 10
Warning Flags
- Long contract duration (over 4 years) may introduce scope creep risks.
- Fixed-price contract type can shift risk to the contractor but may lead to higher initial bids.
Positive Signals
- Awarded through full and open competition.
- Contractor has a strong track record in defense systems.
- Clear statement of work for defense support systems.
Sector Analysis
This contract falls within the Defense sector, specifically in the Guided Missile and Space Vehicle Manufacturing sub-sector. Spending in this area is typically high due to the complex and critical nature of national security systems.
Small Business Impact
The data indicates the prime contractor is Northrop Grumman Systems Corporation, a large business. There is no specific information provided regarding small business participation or subcontracting goals in this award notice.
Oversight & Accountability
The Department of Defense, through its contracting agencies, is responsible for overseeing this contract. The award notice suggests a structured process, but detailed oversight mechanisms and performance reviews are not specified here.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Contract duration
- Complexity of defense systems
- Potential for cost overruns (despite fixed price)
- Reliance on a single large contractor
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $620.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 199711!5700!0053!GZ39 !SMC/PKZ DEFENSE SUPPORT SYS DIR !F0470193C0001 !A!*!P00038 !19970724!20011231!197859408!197859408!004179453!N!11982!TRW INC !1 SPACE PARK BLVD !REDONDO BEACH !CA!90278!60018!037!06!REDONDO BEACH !LOS ANGELES !CALIFORNIA!0001!+000001463598!N!N!000000000000!AC25!RDTE/MISSILE AND SPACE SYSTEMS-ENG/MANUF DEVEL !A2 !MISSILE AND SPACE SYSTEMS !3GYL!DEFENSE SUPPORT PROGRAM !3761!3!*!*!C!B!A!*!A !N!L!2!0
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 $620.6 million.
What is the period of performance?
Start: 1997-07-24. End: 2007-12-31.
What specific defense support systems are being provided under this contract?
The contract is for 'DEFENSE SUPPORT SYS DIR' and falls under 'RDTE/MISSILE AND SPACE SYSTEMS-ENG/MANUF DEVEL'. While the exact nature of the support systems is not detailed in this notice, it likely pertains to engineering, manufacturing development, and operational support for missile and space systems critical to national defense.
What are the potential risks associated with a firm fixed-price contract for complex defense systems?
Firm fixed-price contracts can be advantageous for cost control, but for complex, long-term defense projects, they carry risks. If unforeseen technical challenges or cost overruns occur, the contractor may face significant financial strain, potentially impacting delivery or quality. Conversely, the government might overpay if the contractor's initial bid was excessively high due to perceived risks.
How does this contract contribute to the overall effectiveness of US defense capabilities?
This contract is crucial for maintaining and advancing the capabilities of US missile and space systems. By ensuring the development and manufacturing of essential defense support systems, it directly bolsters the nation's strategic defense posture, technological superiority, and readiness to address evolving threats in these critical domains.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
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
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1 SPACE PARK BLVD, REDONDO BEACH, CA, 90278
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $622,144,427
Exercised Options: $621,414,604
Current Obligation: $620,622,319
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 1997-07-24
Current End Date: 2007-12-31
Potential End Date: 2007-12-31 00:00:00
Last Modified: 2023-09-29
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