DoD's $18.6M R&D Contract for Integrated Sensor Suite Evaluation Awarded to Northrop Grumman
Contract Overview
Contract Amount: $18,594,208 ($18.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2012-05-11
End Date: 2014-05-20
Contract Duration: 739 days
Daily Burn Rate: $25.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: INTEGRATED SENSOR SUITE THEATER EVALUATION AND TEST
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Defense obligated $18.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: INTEGRATED SENSOR SUITE THEATER EVALUATION AND TEST Key points: 1. This contract focuses on research and development for advanced sensor systems. 2. Northrop Grumman, a major defense contractor, secured this award. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is R&D, specifically physical and engineering sciences.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type carries inherent risk for cost overruns, making a direct pricing assessment difficult without further data on the fixed fee and total costs incurred. Benchmarking is challenging due to the specialized R&D nature.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible value for this $18.6 million investment.
Public Impact
Taxpayers may have paid more due to the absence of competitive bidding. The development of advanced sensor technology could have significant national security implications. The specific outcomes and benefits of this R&D effort are not detailed, impacting public understanding of its value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of detailed public impact information
Positive Signals
- Focus on critical R&D for defense
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced sensor technology. Spending in this area is crucial for maintaining technological superiority but requires careful oversight due to its specialized nature and potential for cost escalation.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded to a large prime contractor, Northrop Grumman.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and effective execution. Further oversight would be needed to confirm the R&D objectives were met efficiently.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type increases cost risk.
- Lack of transparency on specific R&D outcomes.
- Potential for higher costs due to non-competitive nature.
Tags
research-and-development-in-the-physical, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. INTEGRATED SENSOR SUITE THEATER EVALUATION AND TEST
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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $18.6 million.
What is the period of performance?
Start: 2012-05-11. End: 2014-05-20.
What specific technological advancements were achieved through this $18.6 million R&D contract, and how do they enhance current defense capabilities?
The contract aimed at the evaluation and testing of an integrated sensor suite. While specific advancements are not detailed in the provided data, such R&D typically seeks to improve target detection, tracking, and data fusion capabilities, potentially leading to enhanced situational awareness and operational effectiveness for the Air Force.
Given the sole-source award and Cost Plus Fixed Fee structure, what measures were in place to mitigate cost overruns and ensure fair pricing?
Without specific details on oversight mechanisms, it's difficult to assess mitigation measures. Typically, agencies would employ technical reviews, cost analysis, and potentially target cost negotiations. However, the inherent nature of CPFF and sole-source awards necessitates robust government oversight to control costs and ensure value.
How does the outcome of this sensor suite R&D contribute to the broader strategic goals of the Department of Defense, and what is the long-term return on investment?
The contribution to strategic goals would depend on the specific capabilities developed. Advanced sensor suites are critical for modern warfare, enabling better intelligence, surveillance, and reconnaissance. The long-term ROI is realized through improved mission success rates, reduced risk to personnel, and maintaining a technological edge over adversaries.
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 (UEI: 967356127)
Address: 17066 GOLDENTOP RD, SAN DIEGO, CA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,280,877
Exercised Options: $33,280,877
Current Obligation: $18,594,208
Subaward Activity
Number of Subawards: 123
Total Subaward Amount: $16,500,587
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2012-05-11
Current End Date: 2014-05-20
Potential End Date: 2014-05-20 00:00:00
Last Modified: 2014-04-10
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