DoD Awards Northrop Grumman $83.7M for High Frequency Receiver Transmitters Under Full and Open Competition
Contract Overview
Contract Amount: $83,705,871 ($83.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2016-09-30
End Date: 2022-03-31
Contract Duration: 2,008 days
Daily Burn Rate: $41.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: IGF::OT::IGF ENGINEERING SERVICES B-2 HIGH FREQUENCY RECEIVER TRANSMITTER
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $83.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF ENGINEERING SERVICES B-2 HIGH FREQUENCY RECEIVER TRANSMITTER Key points: 1. Significant contract value for specialized engineering services. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate due to the specialized nature of the equipment. 4. Sector is Defense, specifically Air Force procurement.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed closely. Benchmarking against similar specialized engineering services contracts is difficult without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific nature of the 'B-2 High Frequency Receiver Transmitter' may limit the number of truly capable bidders.
Taxpayer Impact: Taxpayer funds are being used for advanced defense technology. The competitive award aims to ensure value for money, but the CPIF contract type warrants close monitoring for cost efficiency.
Public Impact
Supports critical Air Force communication capabilities. Involves advanced engineering and manufacturing for specialized defense systems. Potential for technological advancements in high-frequency communication.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contract type can lead to higher costs.
- Specialized nature of the equipment may limit competition despite 'full and open' designation.
- Long contract duration (2016-2022) increases exposure to cost fluctuations.
Positive Signals
- Awarded under full and open competition.
- Supports a critical defense platform (B-2).
Sector Analysis
This contract falls within the Defense sector, specifically for engineering services related to avionics and communication systems. Spending benchmarks for highly specialized, low-volume defense electronics can vary significantly.
Small Business Impact
The prime contractor is Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in the provided data.
Oversight & Accountability
Oversight would typically be managed by the Department of the Air Force contracting and program management offices. The CPIF contract structure necessitates robust oversight to control costs and ensure performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Incentive Fee (CPIF) contract type.
- Potential for limited true competition despite 'full and open' designation.
- Long contract duration increases risk of cost escalation and obsolescence.
- Lack of detail on specific performance incentives.
- No clear indication of small business participation.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $83.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF ENGINEERING SERVICES B-2 HIGH FREQUENCY RECEIVER TRANSMITTER
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 $83.7 million.
What is the period of performance?
Start: 2016-09-30. End: 2022-03-31.
What is the specific performance metric tied to the incentive fee, and how has Northrop Grumman historically performed against such metrics in similar contracts?
The specific performance metric for the incentive fee is not detailed in the provided data. However, for CPIF contracts, incentives are typically tied to achieving cost, schedule, or performance targets. Northrop Grumman's historical performance would need to be assessed through past performance reviews and contract award histories to determine their proficiency in meeting incentive criteria and managing costs effectively under such arrangements.
Given the specialized nature of the B-2 receiver transmitter, what is the risk of obsolescence or the need for future upgrades, and how is this factored into the contract's long-term value?
The risk of obsolescence for specialized defense electronics is significant due to rapid technological advancements. This contract's long duration (2016-2022) increases this risk. Future upgrade needs are likely managed through separate contract actions or modifications, as the current award focuses on the specified 'B-2 High Frequency Receiver Transmitter'. The long-term value depends on the platform's lifespan and the adaptability of the technology.
How effectively did the 'full and open competition' process identify and engage all technically capable suppliers for this highly specialized engineering service?
While the award was made under 'full and open competition,' the highly specialized nature of the B-2 High Frequency Receiver Transmitter suggests that the pool of truly capable suppliers might be limited. The effectiveness of the competition hinges on whether the solicitation reached all potential sources and if the evaluation criteria adequately balanced technical capability with price. Without further details on the bidding process and the number of proposals received, it's difficult to definitively assess the competitive intensity.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA811916R0007
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $83,705,871
Exercised Options: $83,705,871
Current Obligation: $83,705,871
Subaward Activity
Number of Subawards: 95
Total Subaward Amount: $2,032,811,379
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU325
IDV Type: IDC
Timeline
Start Date: 2016-09-30
Current End Date: 2022-03-31
Potential End Date: 2022-03-31 00:00:00
Last Modified: 2023-03-06
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)