DoD's $34.6M contract for RF countermeasures systems awarded to Northrop Grumman, with 4 bidders
Contract Overview
Contract Amount: $34,622,929 ($34.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2015-11-12
End Date: 2023-07-19
Contract Duration: 2,806 days
Daily Burn Rate: $12.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: IGF::OT::IGF RADIO FREQUENCY COUNTERMEASURES (SYSTEM DESIGN)
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $34.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF RADIO FREQUENCY COUNTERMEASURES (SYSTEM DESIGN) Key points: 1. Contract value of $34.6M over 8 years suggests a significant investment in advanced defense technology. 2. The presence of 4 bidders indicates a competitive market for these specialized systems. 3. Fixed Price Incentive contract type suggests a balance between cost control and performance incentives. 4. The contract's duration of over 7 years points to a long-term need for these capabilities. 5. Awarded to a single prime contractor, Northrop Grumman, highlighting their role in this defense sector. 6. The North American Industry Classification System (NAICS) code 334511 points to a focus on system manufacturing.
Value Assessment
Rating: good
The contract value of $34.6M over approximately 7 years averages to about $4.9M annually. Benchmarking this against similar complex defense system development contracts is challenging without more specific details on the system's capabilities and scope. However, the fixed-price incentive structure suggests an effort to manage costs while incentivizing performance, which is a positive sign for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, with four bidders participating. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of multiple bidders suggests that the market for these specialized radio frequency countermeasures systems is not overly concentrated.
Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging innovation among contractors.
Public Impact
The primary beneficiaries are the Department of Defense, specifically the Air Force, receiving advanced radio frequency countermeasures systems. These systems are crucial for enhancing electronic warfare capabilities and protecting air assets. The contract supports specialized manufacturing and engineering roles within the defense industrial base. The geographic impact is primarily centered around the contractor's facilities in Illinois, with potential downstream effects on suppliers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if performance incentives are not carefully managed within the Fixed Price Incentive structure.
- Long contract duration could lead to scope creep or evolving technological requirements not fully captured in the initial award.
- Reliance on a single prime contractor for system integration and delivery may pose risks if performance issues arise.
Positive Signals
- Full and open competition indicates a healthy market and potential for competitive pricing.
- The use of an incentive contract type suggests a focus on achieving specific performance targets.
- The award to a large, established defense contractor like Northrop Grumman implies a certain level of technical expertise and program management capability.
Sector Analysis
This contract falls within the defense electronics and systems manufacturing sector, specifically focusing on electronic warfare capabilities. The market for such specialized systems is driven by evolving threats and the need for technological superiority. Comparable spending benchmarks would typically involve other large-scale defense system development and production contracts, often in the tens to hundreds of millions of dollars.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor is a large corporation. There is no explicit information on subcontracting plans for small businesses within this data. The impact on the small business ecosystem would depend on whether Northrop Grumman actively engages small businesses for specialized components or services.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices, potentially involving the Air Force's specific oversight bodies. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive.
Related Government Programs
- Airborne Electronic Warfare Systems
- Defense Radar and Navigation Systems
- Electronic Countermeasures Equipment
- Military Communication Systems
- Northrop Grumman Defense Contracts
Risk Flags
- Potential for cost overruns due to incentive structure.
- Risk of evolving technological requirements impacting system design.
- Dependency on prime contractor's specialized expertise.
- Long contract duration may introduce schedule risks.
Tags
defense, department-of-defense, air-force, northrop-grumman-systems-corporation, definitive-contract, fixed-price-incentive, full-and-open-competition, system-design, radio-frequency-countermeasures, illinois, navigational-guidance-and-control-equipment-manufacturing, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF RADIO FREQUENCY COUNTERMEASURES (SYSTEM DESIGN)
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 $34.6 million.
What is the period of performance?
Start: 2015-11-12. End: 2023-07-19.
What is the specific nature of the 'Radio Frequency Countermeasures (System Design)' being procured, and what are its intended operational capabilities?
The specific nature of the 'Radio Frequency Countermeasures (System Design)' procured under this contract likely refers to systems designed to detect, identify, and disrupt enemy radar and communication signals. These systems are crucial for electronic warfare, aiming to protect friendly aircraft, ships, or ground forces by jamming enemy sensors or communication channels, or by deceiving them. Operational capabilities could include broad-spectrum jamming, targeted signal disruption, electronic intelligence gathering, and integration with other defensive systems. The 'System Design' aspect suggests the contract may cover initial research, development, prototyping, and potentially early production phases, focusing on the architecture and engineering of the countermeasures solution rather than mass production of a fully mature system.
How does the $34.6M contract value compare to other similar defense contracts for electronic warfare systems?
The $34.6M contract value for Radio Frequency Countermeasures (System Design) awarded to Northrop Grumman appears to be a moderate-sized contract within the broader defense electronics and electronic warfare sector. Large-scale development and production programs for advanced electronic warfare suites can easily reach hundreds of millions or even billions of dollars. However, for a system design and potentially initial development phase, $34.6M over approximately 7 years (2806 days) represents a significant investment. It suggests a focused effort on a specific capability rather than a broad, multi-platform system. Comparing it directly requires knowledge of the specific technological maturity, scope, and intended application, but it is not an outlier for a specialized defense system development effort.
What are the key performance indicators (KPIs) or metrics used to assess the success of this Fixed Price Incentive (FPI) contract?
For a Fixed Price Incentive (FPI) contract like this one, key performance indicators (KPIs) would typically focus on achieving specific technical performance targets, delivery schedules, and cost ceilings. For RF countermeasures, KPIs might include the system's effective range, jamming effectiveness against specific threat frequencies, signal detection accuracy, reliability (Mean Time Between Failures - MTBF), power consumption, and physical size/weight constraints. The 'incentive' aspect means that Northrop Grumman would be rewarded for exceeding certain performance targets or achieving them under budget, while penalties or shared cost increases might apply if targets are missed or costs escalate beyond agreed limits. The contract's structure would detail the target cost, target profit, price ceiling, and the sharing ratio for cost variances.
What is Northrop Grumman's track record in developing and delivering similar electronic warfare or countermeasures systems?
Northrop Grumman has a long and extensive track record in developing and delivering a wide array of advanced defense systems, including significant expertise in electronic warfare (EW) and countermeasures. They are a major player in the defense industry, known for producing sophisticated radar systems, electronic attack capabilities, and integrated EW suites for various platforms, including aircraft, ships, and ground systems. Their portfolio includes programs like the B-21 Raider's EW systems, F-35's AN/ASQ-239 EW system, and various airborne and naval EW solutions. This history suggests they possess the technical capabilities, program management experience, and manufacturing capacity necessary to handle complex contracts like the RF countermeasures system design.
How has spending on similar RF countermeasures or electronic warfare systems evolved over the past decade?
Spending on RF countermeasures and broader electronic warfare (EW) systems has generally seen a steady increase over the past decade, driven by the evolving threat landscape and the increasing reliance on the electromagnetic spectrum for military operations. As adversaries develop more sophisticated radar, communication, and missile guidance systems, the need for advanced countermeasures to protect friendly forces becomes more critical. This includes investments in technologies for jamming, spoofing, electronic intelligence (ELINT), and cyber warfare capabilities within the EW domain. Government defense budgets, particularly within the US Department of Defense, consistently allocate significant portions to EW research, development, and procurement, reflecting its strategic importance.
What are the potential risks associated with the 'System Design' phase of this contract, and how are they mitigated?
The primary risks in the 'System Design' phase of such a contract revolve around technical feasibility, integration challenges, and accurately defining requirements that remain stable throughout development. There's a risk that the envisioned system may prove more complex or costly to implement than initially anticipated, or that requirements might change due to evolving threats or technological advancements. Mitigation strategies typically involve rigorous system engineering processes, phased development with clear milestones and reviews (e.g., Preliminary Design Review - PDR, Critical Design Review - CDR), prototyping, simulation, and close collaboration between the contractor and the government customer. The FPI contract structure itself also provides some mitigation by incentivizing cost control and performance, encouraging the contractor to identify and address risks proactively.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument 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: 4
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 600 HICKS RD, ROLLING MEADOWS, IL, 60008
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: $385,304,851
Exercised Options: $34,622,929
Current Obligation: $34,622,929
Subaward Activity
Number of Subawards: 332
Total Subaward Amount: $230,105,292
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-11-12
Current End Date: 2023-07-19
Potential End Date: 2023-07-19 00:00:00
Last Modified: 2021-07-19
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