DoD's $176M Elastx Program with Northrop Grumman: R&D Spending Under Full and Open Competition
Contract Overview
Contract Amount: $17,614,725 ($17.6M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2010-05-20
End Date: 2017-06-29
Contract Duration: 2,597 days
Daily Burn Rate: $6.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ELASTX PROGRAM
Place of Performance
Location: REDONDO BEACH, LOS ANGELES County, CALIFORNIA, 90278
Plain-Language Summary
Department of Defense obligated $17.6 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: ELASTX PROGRAM Key points: 1. The $176.1 million Elastx program represents significant R&D investment by the Department of Defense. 2. Competition was full and open, suggesting a robust price discovery process. 3. The contract type (Cost Plus Fixed Fee) carries inherent risk of cost overruns. 4. The sector is Research and Development, specifically in physical, engineering, and life sciences. 5. Northrop Grumman Systems Corp is the prime contractor.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility for R&D, can lead to higher costs compared to fixed-price contracts. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. However, the Cost Plus Fixed Fee structure may limit the direct impact of competition on final cost.
Taxpayer Impact: Taxpayer funds are being used for advanced R&D. While competition aims for efficiency, the CPFF structure requires careful oversight to ensure value for money.
Public Impact
Defense R&D spending supports technological advancement and national security. The program duration of nearly 7 years indicates a long-term research effort. Contract performance data is crucial for assessing the ultimate value delivered to taxpayers. The specific nature of the R&D is not detailed, limiting public understanding of its direct impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type increases cost risk.
- Lack of detailed cost reporting hinders transparency.
- Long contract duration may lead to scope creep or evolving requirements.
Positive Signals
- Awarded under full and open competition.
- Contractor is a major defense industry player.
- Program aligns with DoD's R&D objectives.
Sector Analysis
This contract falls under the Research and Development sector, specifically NAICS code 541712. Spending in this area is critical for innovation but can be less predictable than other sectors. Benchmarks are difficult due to the unique nature of R&D projects.
Small Business Impact
There is no indication that small businesses were involved as subcontractors on this contract. Prime contracts of this magnitude often involve large corporations, potentially limiting opportunities for smaller enterprises.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. The Cost Plus Fixed Fee structure necessitates rigorous monitoring of costs and performance to ensure accountability and prevent waste.
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 Plus Fixed Fee contract type.
- Long contract duration.
- Lack of detailed public information on program objectives and outcomes.
- Potential for cost overruns inherent in R&D CPFF contracts.
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 $17.6 million to NORTHROP GRUMMAN SYSTEMS CORP. ELASTX PROGRAM
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $17.6 million.
What is the period of performance?
Start: 2010-05-20. End: 2017-06-29.
What specific technological advancements or capabilities did the Elastx program aim to achieve, and were these objectives met within the allocated budget?
The specific objectives of the Elastx program are not publicly detailed in the provided data. Assessing whether the $176.1 million was effectively spent requires access to program milestones, technical reports, and final outcomes. Without this information, it's impossible to definitively state if the R&D goals were met or if the spending represented good value for the intended technological advancements.
Given the Cost Plus Fixed Fee structure, what mechanisms were in place to control costs and mitigate the risk of contractor inefficiency or profit maximization at taxpayer expense?
Cost Plus Fixed Fee contracts inherently carry a risk of cost escalation. Effective oversight by the Defense Contract Management Agency would involve detailed audits of incurred costs, review of contractor's labor and material expenses, and ensuring adherence to the fixed fee. Performance incentives or penalties, if included in the contract, would also play a role in managing contractor behavior and ensuring efficient execution.
How does the $176.1 million investment in the Elastx program compare to other similar R&D initiatives within the Department of Defense, and what was the expected return on investment?
Comparing this $176.1 million investment requires access to a broader dataset of DoD R&D contracts within the physical, engineering, and life sciences (excluding biotech) sector. The return on investment for R&D is often long-term and can manifest as new technologies, improved defense capabilities, or scientific breakthroughs, rather than immediate financial returns. Without specific program outcomes, quantifying the ROI is speculative.
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: BASIC RESEARCH
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: M/S E1-2035, ONE SPACE PARK BLVD, REDONDO BEACH, CA, 90278
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,614,725
Exercised Options: $17,614,725
Current Obligation: $17,614,725
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-05-20
Current End Date: 2017-06-29
Potential End Date: 2017-06-29 00:00:00
Last Modified: 2023-09-28
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