DoD's $59M Digital Infrastructure Contract Awarded to Northrop Grumman for Advanced Battle Management System

Contract Overview

Contract Amount: $59,134,419 ($59.1M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2022-06-10

End Date: 2027-06-05

Contract Duration: 1,821 days

Daily Burn Rate: $32.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: DIGITAL INFRASTRUCTURE CONSORTIUM FOR ADVANCED BATTLE MANAGEMENT SYSTEM

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32904

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $59.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DIGITAL INFRASTRUCTURE CONSORTIUM FOR ADVANCED BATTLE MANAGEMENT SYSTEM Key points: 1. The contract focuses on R&D for a critical defense system, indicating a need for advanced capabilities. 2. Northrop Grumman, a major defense contractor, is the awardee, suggesting significant industry players are involved. 3. The award is for Research and Development in Physical, Engineering, and Life Sciences, a high-tech sector. 4. The contract duration of 1821 days highlights a long-term investment in system development.

Value Assessment

Rating: good

The contract value of $59.1 million appears reasonable for a multi-year R&D effort on a complex defense system. Benchmarking against similar large-scale R&D contracts for advanced military systems would provide a more precise assessment.

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 and allows for a wide range of potential offerors. This method is expected to yield fair market prices.

Taxpayer Impact: Full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for contract awards.

Public Impact

Enhances national defense capabilities through advanced battle management. Supports technological innovation in the defense sector. Potential for job creation in R&D and related fields. Ensures U.S. military maintains a technological edge.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in long-term R&D projects.
  • Dependency on a single large contractor for critical system development.

Positive Signals

  • Awarded through full and open competition.
  • Focus on critical national security infrastructure.
  • Long-term contract duration allows for sustained development.

Sector Analysis

This contract falls within the Research and Development sector, specifically for advanced battle management systems. Spending in this area is crucial for maintaining military technological superiority and often involves significant investment due to the complexity and innovation required.

Small Business Impact

While the primary awardee is a large corporation, the contract may indirectly benefit small businesses through subcontracting opportunities. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Air Force is responsible for oversight. The contract's long duration and R&D nature necessitate continuous monitoring to ensure progress, adherence to scope, and responsible use of funds.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Long-term R&D project risks
  • Potential for scope creep
  • Dependency on key personnel
  • Technological obsolescence risk

Tags

research-and-development-in-the-physical, department-of-defense, fl, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. DIGITAL INFRASTRUCTURE CONSORTIUM FOR ADVANCED BATTLE MANAGEMENT SYSTEM

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 $59.1 million.

What is the period of performance?

Start: 2022-06-10. End: 2027-06-05.

What are the specific performance metrics and milestones for this R&D contract?

Specific performance metrics and milestones are not detailed in the provided data. Typically, R&D contracts of this nature would include phased deliverables, technical reviews, and performance benchmarks tied to the development of the advanced battle management system. The Department of the Air Force would monitor these against the contract's statement of work.

What is the risk of technological obsolescence given the long development timeline?

The risk of technological obsolescence is a significant concern in long-term R&D for advanced systems. Continuous market scanning, agile development methodologies, and built-in flexibility within the contract to adapt to emerging technologies are crucial mitigation strategies employed by the DoD.

How will the effectiveness of the developed battle management system be measured post-development?

Effectiveness will likely be measured through rigorous testing, simulations, and operational field trials. Post-development evaluation would assess the system's ability to meet its intended operational requirements, enhance command and control, and integrate with existing military infrastructure.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 28

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 W NASA BLVD, MELBOURNE, FL, 32904

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: $95,790,808

Exercised Options: $85,371,140

Current Obligation: $59,134,419

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA861220D0018

IDV Type: IDC

Timeline

Start Date: 2022-06-10

Current End Date: 2027-06-05

Potential End Date: 2027-06-05 00:00:00

Last Modified: 2025-12-22

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