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

State: California Government Spending

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 ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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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