DoD Awards $93.8M Contract to Northrop Grumman for Advanced Electronics R&D
Contract Overview
Contract Amount: $42,018,921 ($42.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2005-04-01
End Date: 2011-02-01
Contract Duration: 2,132 days
Daily Burn Rate: $19.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 200507!001456!5700!FA8650!DET 1 AFRL/PK !FA865004C7142 !A!N! !Y! !P00001!20050401!20070401!938535028!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!ONE HORNET WAY M/S K08304/!EL SEGUNDO !CA!90245!22412!037!06!EL SEGUNDO !LOS ANGELES !CALIFORNIA!+000000027084!N!N!000000000000!AC63!RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !3! ! !C! ! !20200930!B! ! !A! !A!N!U!2!004!E! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $42.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200507!001456!5700!FA8650!DET 1 AFRL/PK !FA865004C7142 !A!N! !Y! !P00001!20050401!20070401!938535028!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!ONE HORNET WAY M/S K08304/!EL SEGUNDO !CA!90245!22412!037!06!EL SEGUNDO !LOS … Key points: 1. Significant investment in advanced electronics and communication equipment development. 2. Contract awarded to a major defense contractor, indicating specialized capabilities. 3. Potential for technological advancements with broad defense applications. 4. Research and Development focus suggests long-term strategic importance.
Value Assessment
Rating: good
The contract value of $93.8M over approximately 6 years appears reasonable for advanced R&D in electronics. Benchmarking against similar complex R&D contracts is difficult without more specific technical details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive process. The pricing discovery mechanism is likely tied to the Cost Plus Fixed Fee structure, which allows for negotiation as costs are incurred.
Taxpayer Impact: Taxpayer funds are supporting critical technological advancements in defense electronics, aiming for future capability improvements.
Public Impact
Enhances national security through cutting-edge electronic warfare and communication technologies. Drives innovation in the aerospace and defense sector, potentially leading to commercial spin-offs. Supports high-skilled jobs in research, engineering, and manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns are a risk with Cost Plus Fixed Fee contracts.
- Technological obsolescence in a rapidly evolving field.
- Dependence on a single contractor for critical technology development.
Positive Signals
- Potential for significant technological breakthroughs.
- Strengthens U.S. technological superiority in defense.
- Long-term investment in future defense capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on electronics and communication equipment. Spending in this area is crucial for maintaining a technological edge in defense.
Small Business Impact
While the primary contractor is a large corporation, subcontracts could potentially be awarded to small businesses for specialized components or services, though this is not explicitly detailed.
Oversight & Accountability
The Department of Defense, through the Air Force Research Laboratory (AFRL), is responsible for overseeing this R&D contract. Standard oversight mechanisms for cost, schedule, and performance are expected.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost overrun potential due to CPFF structure.
- Risk of technological obsolescence.
- Dependency on contractor's expertise.
- Uncertainty in R&D outcomes.
- Potential for scope creep in advanced development.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200507!001456!5700!FA8650!DET 1 AFRL/PK !FA865004C7142 !A!N! !Y! !P00001!20050401!20070401!938535028!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!ONE HORNET WAY M/S K08304/!EL SEGUNDO !CA!90245!22412!037!06!EL SEGUNDO !LOS ANGELES !CALIFORNIA!+000000027084!N!N!000000000000!AC63!RDTE/ELECTRONICS & COMMUNICATION EQ-ADV TECH DEV !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !3! ! !C! ! !202
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 $42.0 million.
What is the period of performance?
Start: 2005-04-01. End: 2011-02-01.
What specific technological advancements are anticipated from this contract, and how will they be measured?
The contract aims to advance technologies in electronics and communication equipment. Specific advancements are likely detailed in technical annexes not provided. Measurement of success would typically involve meeting defined technical performance milestones, demonstrating new capabilities, and successful integration into existing or future defense systems.
What are the primary risks associated with the 'Cost Plus Fixed Fee' pricing structure in this R&D context?
The primary risk with CPFF is that the contractor may not have a strong incentive to control costs rigorously, as the fee is fixed regardless of the final cost. This can lead to cost overruns. For R&D, the inherent uncertainty of achieving technical goals also adds risk, potentially requiring contract modifications or extensions.
How does this investment align with broader DoD modernization goals and ensure long-term effectiveness?
This investment likely aligns with DoD's strategic goals of maintaining technological superiority and modernizing its forces. By funding advanced R&D, the DoD aims to develop next-generation capabilities that will remain effective against evolving threats, ensuring long-term national security and deterring adversaries.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: BASIC RESEARCH
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: ONE HORNET WAY M/S K08304/, EL SEGUNDO, CA, 90245
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-04-01
Current End Date: 2011-02-01
Potential End Date: 2011-02-01 00:00:00
Last Modified: 2024-03-07
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