DoD's $12.25M Airborne Electronic Attack Tech Maturation Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $12,251,994 ($12.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2008-06-30
End Date: 2012-12-03
Contract Duration: 1,617 days
Daily Burn Rate: $7.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: AIRBORNE ELECTRONIC ATTACK TECHNOLOGY MATURATION DEMONSTRATION (AEATMD)
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $12.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: AIRBORNE ELECTRONIC ATTACK TECHNOLOGY MATURATION DEMONSTRATION (AEATMD) Key points: 1. Contract focused on R&D for advanced electronic warfare capabilities. 2. Awarded through full and open competition, suggesting a robust market. 3. Contract duration of over 4 years indicates a significant development effort. 4. Northrop Grumman, a major defense contractor, is the sole awardee. 5. The contract type (Cost Plus Fixed Fee) carries inherent cost-reimbursement risks. 6. Research and Development in Physical Sciences is a critical but complex sector.
Value Assessment
Rating: fair
Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and the lack of directly comparable public data. The Cost Plus Fixed Fee (CPFF) structure means the final cost could exceed initial estimates, making a definitive value-for-money assessment difficult without detailed cost breakdowns. However, the award to a large, established defense contractor like Northrop Grumman suggests a certain level of expected technical capability and performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. The presence of 5 bids suggests a competitive environment for this type of advanced technology development. This level of competition is generally favorable for price discovery and ensuring the government receives proposals from a range of qualified sources.
Taxpayer Impact: Full and open competition helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that can drive down costs and encourage innovation.
Public Impact
The primary beneficiaries are the Department of Defense, which will receive advancements in airborne electronic attack technology. The services delivered involve research and development, aiming to mature critical defense capabilities. The geographic impact is likely concentrated where Northrop Grumman conducts its R&D, primarily in Maryland. Workforce implications include specialized R&D roles within Northrop Grumman and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contracts can lead to cost overruns if not managed diligently.
- The specialized nature of R&D makes performance metrics difficult to define and measure objectively.
- Reliance on a single large contractor may limit future competition or innovation from smaller firms.
Positive Signals
- Awarded through full and open competition, indicating a healthy market for this technology.
- Northrop Grumman is a reputable contractor with extensive experience in aerospace and defense.
- The contract aims to mature critical defense technology, potentially enhancing national security.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical sciences and engineering related to defense applications. The market for advanced electronic warfare technology is highly specialized, dominated by a few large defense contractors. Spending in this area is driven by evolving threats and the need for technological superiority. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D contracts.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Given the specialized nature of advanced technology maturation, it is common for prime contracts to be awarded to large, established companies. However, Northrop Grumman may engage small businesses as subcontractors to fulfill specific needs, contributing to the broader small business ecosystem within the defense industrial base.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the CPFF contract type, requiring detailed reporting and justification of costs. Transparency may be limited due to the sensitive nature of defense R&D, but standard contract reporting mechanisms should be in place.
Related Government Programs
- Advanced Electronic Warfare Systems
- Defense Research and Development Programs
- Airborne Systems Development
- Technology Maturation Contracts
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Specialized R&D nature makes performance benchmarking difficult.
- Limited public data available for specific R&D technology maturation contracts.
Tags
department-of-defense, northrop-grumman-systems-corporation, research-and-development, airborne-electronic-attack, technology-maturation, cost-plus-fixed-fee, full-and-open-competition, maryland, defense-contract-management-agency, 541712, advanced-technology, electronic-warfare
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. AIRBORNE ELECTRONIC ATTACK TECHNOLOGY MATURATION DEMONSTRATION (AEATMD)
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 $12.3 million.
What is the period of performance?
Start: 2008-06-30. End: 2012-12-03.
What is Northrop Grumman's track record with similar R&D contracts for the Department of Defense?
Northrop Grumman has a long and extensive history of performing research and development contracts for the Department of Defense across various domains, including aerospace, electronic warfare, and advanced technologies. They are a prime contractor on numerous large-scale defense programs. While specific data on past AEATMD-like contracts is not provided here, their overall portfolio indicates significant experience in developing and maturing complex defense technologies. Their performance on previous contracts, often involving similar R&D objectives and contract types like CPFF, would be a key indicator of their capability and reliability for this specific award. Historical performance reviews and past performance questionnaires would offer deeper insights into their success rates, adherence to schedule, and cost management on comparable projects.
How does the $12.25 million award compare to typical R&D spending in airborne electronic attack technology?
The $12.25 million award for the Airborne Electronic Attack Technology Maturation Demonstration (AEATMD) represents a moderate investment for a technology maturation effort in a highly specialized field like airborne electronic attack. R&D spending in this area can vary significantly, with early-stage research potentially costing less, while full-scale development and prototyping of advanced systems can run into hundreds of millions or even billions of dollars. This contract appears to be focused on the demonstration and maturation phase, bridging the gap between basic research and system development. Without more granular data on the specific technological goals and the scope of work, it's difficult to definitively benchmark this amount against the broader R&D landscape. However, it suggests a focused effort on maturing specific technologies rather than a broad, multi-year system development program.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for Research and Development (R&D) revolve around cost control and potential overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing their profit. If the R&D effort encounters unforeseen technical challenges or scope creep, the allowable costs can increase significantly, leading to a higher final contract price than initially anticipated. The fixed fee, however, remains constant, which can disincentivize the contractor from controlling costs once the fee is 'earned' in their view. For the government, the risk is paying higher-than-expected costs without a commensurate increase in the contractor's profit margin. Effective oversight, detailed cost tracking, and robust change management are crucial to mitigate these risks.
How effective is the 'full and open competition' approach for specialized R&D contracts like this?
Full and open competition is generally considered the most effective method for achieving best value and promoting innovation, even for specialized R&D contracts. It ensures that the government solicits proposals from all responsible sources, maximizing the pool of potential solutions and fostering a competitive environment that can drive down prices and encourage technological advancements. For specialized R&D, this approach allows the government to identify unique capabilities and novel approaches that might not be apparent through other procurement methods. The presence of 5 bidders in this case suggests that there is indeed a competitive market for airborne electronic attack technology maturation. While specialized R&D can be complex to evaluate, a well-defined solicitation and robust evaluation criteria can effectively leverage full and open competition to secure the best technical solutions and value for the taxpayer.
What are the historical spending patterns for airborne electronic attack technology maturation within the Department of Defense?
Historical spending patterns for airborne electronic attack (AEA) technology maturation within the Department of Defense (DoD) are characterized by cyclical investments driven by evolving threat landscapes and technological advancements. The DoD consistently allocates significant resources to electronic warfare (EW) capabilities, recognizing their critical role in modern warfare. Spending often fluctuates based on specific program needs, such as upgrading existing platforms or developing entirely new systems to counter emerging threats. Contracts in this area can range from early-stage research and feasibility studies to full-scale system development and integration. While the $12.25 million for AEATMD is a specific instance, broader DoD spending on EW R&D, including related areas like radar, signals intelligence, and cyber warfare, likely runs into billions of dollars annually across various services and agencies. Analyzing historical budgets and contract awards for AEA and broader EW programs would reveal trends in investment priorities and technological focus areas over time.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 1580A NURSERY RD, LINTHICUM HEIGHTS, MD, 21090
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,534,007
Exercised Options: $20,534,007
Current Obligation: $12,251,994
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-06-30
Current End Date: 2012-12-03
Potential End Date: 2012-12-03 00:00:00
Last Modified: 2015-09-18
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