DoD's $49.3M Northrop Grumman HART Contract Lacks Competition, Raises Value Concerns
Contract Overview
Contract Amount: $49,314,868 ($49.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2010-02-10
End Date: 2021-09-10
Contract Duration: 4,230 days
Daily Burn Rate: $11.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: HETEROGENEOUS AIRBORNE RECONNAISSANCE TEAM (HART)
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $49.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: HETEROGENEOUS AIRBORNE RECONNAISSANCE TEAM (HART) Key points: 1. Significant spending on a sole-source R&D contract for airborne reconnaissance. 2. Northrop Grumman is the sole awardee, indicating a lack of competitive bidding. 3. The contract's long duration and cost-plus structure may lead to cost overruns. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical but often complex sector for oversight.
Value Assessment
Rating: questionable
The contract value of $49.3M over 11 years for R&D is substantial. Without competitive benchmarks, assessing its value for money is difficult. The cost-plus fixed fee structure can incentivize cost increases.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning Northrop Grumman was the only bidder. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition on a nearly $50M contract means taxpayers may be paying a premium for the developed technology and services.
Public Impact
Taxpayers fund advanced airborne reconnaissance capabilities through this sole-source award. The long contract duration suggests a sustained need for this technology. Potential for cost overruns due to the cost-plus fixed fee contract type. Lack of transparency in pricing due to the absence of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- Lack of competition
Positive Signals
- Critical R&D for national security
- Established contractor with relevant expertise
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but requires careful oversight due to its inherent complexity and long development cycles.
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
The contract's sole-source nature and cost-plus structure warrant close oversight to ensure cost control and effective use of taxpayer funds. The long duration necessitates ongoing monitoring of performance and expenditures.
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
- Sole-source award limits competition and price discovery.
- Cost-plus contract type can incentivize higher costs.
- Long contract duration increases exposure to potential cost growth.
- Lack of transparency in pricing due to non-competitive nature.
- Potential for contractor to lack sufficient incentive for cost efficiency.
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 $49.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. HETEROGENEOUS AIRBORNE RECONNAISSANCE TEAM (HART)
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 $49.3 million.
What is the period of performance?
Start: 2010-02-10. End: 2021-09-10.
What specific technological advancements or capabilities were developed under this contract, and how do they compare to industry standards or potential alternatives?
The provided data does not detail the specific technological advancements or capabilities developed under the HETEROGENEOUS AIRBORNE RECONNAISSANCE TEAM (HART) contract. To assess value, a review of technical reports, performance metrics, and comparisons with similar systems developed through competitive means would be necessary. Understanding the unique requirements driving this sole-source award is crucial.
Given the cost-plus fixed fee structure and lack of competition, what measures were in place to mitigate the risk of cost overruns and ensure fair pricing?
The data indicates a cost-plus fixed fee contract awarded sole-source, which inherently carries a higher risk of cost overruns and potentially inflated prices. Effective oversight would require robust auditing of costs, stringent performance monitoring, and clear milestones. Without details on specific controls, it's difficult to assess the adequacy of risk mitigation.
How effective has this contract been in delivering the intended airborne reconnaissance capabilities for the Department of Defense?
Effectiveness cannot be determined solely from the contract data. An assessment would require evaluating the operational deployment and performance of the HART system against its intended mission requirements. Feedback from end-users within the DoD and comparison to mission success rates would be key indicators of effectiveness.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: ONE HORNET WAY, EL SEGUNDO, CA, 90245
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $88,487,399
Exercised Options: $88,487,399
Current Obligation: $49,314,868
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-02-10
Current End Date: 2021-09-10
Potential End Date: 2021-09-10 00:00:00
Last Modified: 2025-04-22
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