DoD's $77.8M ORCA R&D Contract with Northrop Grumman: A Deep Dive
Contract Overview
Contract Amount: $77,808,988 ($77.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2008-04-24
End Date: 2011-08-29
Contract Duration: 1,222 days
Daily Burn Rate: $63.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ORCA
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $77.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ORCA Key points: 1. Significant investment in advanced R&D for the Department of Defense. 2. Northrop Grumman, a major defense contractor, secured this award. 3. Potential risks associated with cost-plus contracts and long durations. 4. The contract falls under the R&D sector, specifically physical and engineering sciences.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. The total award value of $77.8M over 1222 days suggests a substantial project, but without specific performance metrics or benchmarks, assessing value is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the specific price discovery mechanisms and the effectiveness of competition in achieving optimal pricing are not detailed.
Taxpayer Impact: Taxpayer funds are being utilized for advanced research and development, with the ultimate benefit being technological advancement for national security. The efficiency of this spending is contingent on project outcomes.
Public Impact
Advancement of critical defense technologies. Potential for technological spin-offs benefiting other sectors. Job creation and economic activity in the aerospace and defense industry. Long-term national security implications of successful R&D.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns risk with CPFF contract.
- Long contract duration may impact adaptability.
- Limited transparency on specific R&D deliverables.
- Potential for scope creep.
Positive Signals
- Awarded through full and open competition.
- Supports critical national security R&D.
- Involves a reputable defense contractor.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for maintaining technological superiority but can be subject to long development cycles and uncertain outcomes.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
Oversight would typically be managed by the Defense Contract Management Agency (DCMA). Ensuring accountability for R&D spending requires rigorous monitoring of milestones, deliverables, and cost controls.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost overrun potential
- Long contract duration
- Lack of specific deliverable details
- Limited visibility into R&D progress
- Potential for scope creep
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 $77.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ORCA
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 $77.8 million.
What is the period of performance?
Start: 2008-04-24. End: 2011-08-29.
What specific technological advancements are expected from this $77.8M R&D investment, and how will their success be measured?
The specific technological advancements are not detailed in the provided data. Success measurement would typically involve predefined technical milestones, performance demonstrations, and the successful integration of developed technologies into defense systems. The effectiveness of the R&D investment hinges on achieving these tangible outcomes within the project's scope and budget.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient use of taxpayer funds?
Cost Plus Fixed Fee contracts inherently carry a risk of cost overruns. Mitigation strategies typically include robust government oversight, detailed cost tracking, regular audits, and clearly defined fixed fee targets tied to performance. The Defense Contract Management Agency (DCMA) would likely be responsible for monitoring expenditures and ensuring adherence to the contract's financial parameters.
How does the outcome of this R&D contract contribute to the Department of Defense's broader strategic objectives and technological roadmap?
The contribution of this R&D contract to broader strategic objectives is not explicitly stated. However, R&D contracts in areas like physical and engineering sciences are generally aimed at developing next-generation capabilities, enhancing existing systems, or exploring disruptive technologies to maintain a military advantage. Its alignment with the DoD's technological roadmap would be assessed through program reviews and strategic planning documents.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,273,994,928
Exercised Options: $759,906,091
Current Obligation: $77,808,988
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-04-24
Current End Date: 2011-08-29
Potential End Date: 2011-08-29 00:00:00
Last Modified: 2024-02-23
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