DoD's $124M Longview R&D Contract Awarded to Northrop Grumman Under Full and Open Competition
Contract Overview
Contract Amount: $12,441,370 ($12.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2006-11-28
End Date: 2009-09-30
Contract Duration: 1,037 days
Daily Burn Rate: $12.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: LONGVIEW
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $12.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LONGVIEW Key points: 1. Contract Value: $124.4 million over 3 years. 2. Competition: Awarded via full and open competition, suggesting market availability. 3. Risk: Cost-plus fixed fee structure may incentivize cost overruns. 4. Sector: Research and Development in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: fair
The contract's cost-plus fixed fee (CPFF) structure, while allowing flexibility for R&D, carries inherent risk of cost escalation. Benchmarking CPFF contracts in R&D is challenging due to unique project scopes, but the fixed fee component aims to provide some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value from a broad range of potential contractors.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for R&D services.
Public Impact
Supports advanced research and development critical to national security. Potential for technological advancements with broad applications. Contractor selection based on competitive market forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus fixed fee contract type can lead to higher costs than fixed-price contracts.
- Contract duration of over 3 years increases exposure to changing requirements and economic conditions.
- No small business participation noted.
Positive Signals
- Awarded through full and open competition, maximizing potential for value.
- Contract supports critical R&D for the Department of Defense.
Sector Analysis
This contract falls within the R&D sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but can be subject to cost overruns due to the inherent uncertainties of research.
Small Business Impact
The data indicates that small business participation was not a factor in this award, as the 'ss' field is false. This suggests the contract was awarded to a large business prime contractor, potentially limiting opportunities for smaller innovative firms.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Robust oversight is crucial for CPFF contracts to manage costs and ensure deliverables meet research objectives.
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-plus fixed fee contract type.
- Long contract duration.
- No small business participation.
- Potential for scope creep in R&D projects.
Tags
research-and-development-in-the-physical, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LONGVIEW
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 $12.4 million.
What is the period of performance?
Start: 2006-11-28. End: 2009-09-30.
What specific R&D advancements were achieved under this contract, and did they align with the initial objectives and budget?
Assessing the specific R&D advancements requires access to contract performance reports and technical documentation. Without this, it's difficult to determine if the $124.4 million investment yielded the expected technological breakthroughs or if the project scope significantly deviated from the original plan, impacting overall value.
Given the CPFF structure, what mechanisms were in place to mitigate cost overruns and ensure efficient use of taxpayer funds?
The CPFF structure necessitates strong government oversight. Mitigation strategies typically include detailed செலவு tracking, regular performance reviews, and clearly defined milestones. The fixed fee component provides some incentive for the contractor to control costs, but the government must actively manage the 'cost' portion to prevent excessive spending.
How did the full and open competition process ensure the best value was obtained for this complex R&D requirement?
Full and open competition allows a wide range of qualified contractors to bid, fostering a competitive environment that typically drives down prices and improves quality. For complex R&D, the evaluation criteria would likely focus not just on price but also on technical approach, past performance, and innovative capabilities, ensuring the selected contractor offered the best overall value.
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
Solicitation Procedures: BASIC RESEARCH
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1580A NURSERY RD, LINTHICUM HEIGHTS, MD, 21090
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $51,158,676
Exercised Options: $51,148,676
Current Obligation: $12,441,370
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-11-28
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2024-03-07
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