DoD awards Northrop Grumman $30M for Ground Minuteman Automatic Test System support
Contract Overview
Contract Amount: $30,028,197 ($30.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-09-01
End Date: 2026-08-31
Contract Duration: 1,825 days
Daily Burn Rate: $16.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: ENGINEERING/TECHNICAL REPRESENTATIVE SERVICES IN SUPPORT OF GROUND MINUTEMAN AUTOMATIC TEST SYSTEM (GMATS)
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $30.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ENGINEERING/TECHNICAL REPRESENTATIVE SERVICES IN SUPPORT OF GROUND MINUTEMAN AUTOMATIC TEST SYSTEM (GMATS) Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for engineering services. 2. Full and open competition was utilized for this contract. 3. The contract has a duration of 5 years. 4. The contract type is Cost Plus Award Fee. 5. This contract supports the Ground Minuteman Automatic Test System (GMATS).
Value Assessment
Rating: good
The contract type is Cost Plus Award Fee, which allows for flexibility but requires careful monitoring of costs and performance to ensure value for money. The award amount of $30M over 5 years suggests a moderate annual spend.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process that should lead to a fair market price. The use of a delivery order under a larger contract suggests a structured procurement approach.
Taxpayer Impact: The competitive nature of the award is expected to ensure taxpayer funds are used efficiently for essential engineering services.
Public Impact
Ensures continued operational readiness of the Minuteman missile system. Supports critical national defense infrastructure. Provides specialized engineering and technical expertise. Contributes to the long-term sustainment of a key strategic asset.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can incentivize overspending if not managed tightly.
- Long contract duration may not adapt quickly to technological changes.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Supports a critical national defense system.
- Experienced contractor selected.
Sector Analysis
This contract falls under Engineering Services within the broader defense sector. Spending benchmarks for similar technical support contracts can vary widely based on system complexity and criticality. The annual value of approximately $6M is moderate for specialized defense engineering.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award, as the prime contractor is a large corporation and the 'sb' flag is false. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The Cost Plus Award Fee structure necessitates robust performance monitoring and financial oversight to ensure contractor accountability and prevent cost overruns.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns with Cost Plus Award Fee structure.
- Long contract duration may lead to outdated technology if not managed.
- Lack of explicit small business participation.
- Reliance on a single large contractor for critical system support.
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 $30.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ENGINEERING/TECHNICAL REPRESENTATIVE SERVICES IN SUPPORT OF GROUND MINUTEMAN AUTOMATIC TEST SYSTEM (GMATS)
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 $30.0 million.
What is the period of performance?
Start: 2021-09-01. End: 2026-08-31.
What are the specific performance metrics tied to the award fee structure, and how are they measured to ensure fair compensation and contractor motivation?
The specific performance metrics for the award fee are not detailed in the provided data. Typically, these metrics would align with key performance indicators such as system reliability, maintenance efficiency, response times for technical support, and successful completion of testing milestones. The Air Force would establish a clear evaluation process to measure the contractor's performance against these metrics, determining the extent of the award fee earned.
Given the 5-year duration, what mechanisms are in place to ensure the engineering services remain relevant and incorporate technological advancements?
The contract's Cost Plus Award Fee structure may allow for adjustments or modifications to incorporate new technologies, provided they are justified and approved by the contracting officer. Regular program reviews and technical interchange meetings between the Air Force and Northrop Grumman are crucial for identifying and integrating relevant technological advancements to maintain system effectiveness and efficiency over the contract's lifespan.
How does the 'UT' (Utah) state code impact the contract's execution and potential for local economic benefit or oversight?
The 'UT' code likely indicates the state where the contract is being managed or where a significant portion of the work is performed. While it doesn't directly dictate the contract's terms, it may influence logistical considerations, state-specific regulations if applicable, and potentially create opportunities for local economic engagement through the contractor's supply chain or workforce, though this is not guaranteed.
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 AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 6006 WARDLEIGH RD BLDG 1575, HILL AIR FORCE BASE, UT, 84056
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,303,479
Exercised Options: $30,303,479
Current Obligation: $30,028,197
Subaward Activity
Number of Subawards: 99
Total Subaward Amount: $42,815,864
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA821421D0002
IDV Type: IDC
Timeline
Start Date: 2021-09-01
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 00:00:00
Last Modified: 2025-12-02
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