DoD's $35M Northrop Grumman Contract for AFRL/RXM Strategic Support Awarded via Full and Open Competition
Contract Overview
Contract Amount: $35,034,554 ($35.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2017-10-16
End Date: 2022-10-16
Contract Duration: 1,826 days
Daily Burn Rate: $19.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF STRATEGIC PLAN, BUS ANALYSIS,&PROGRAM MGMT SUPP, AFRL/RXM
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $35.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF STRATEGIC PLAN, BUS ANALYSIS,&PROGRAM MGMT SUPP, AFRL/RXM Key points: 1. Contract awarded to a single, large, established defense contractor. 2. Significant contract value over 5 years suggests complex, long-term support needs. 3. Engineering services (NAICS 541330) are critical for advanced research and development. 4. The contract's 'VA' status in Virginia may indicate proximity to key Air Force research facilities.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts for similar engineering services is difficult without more specific scope details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the long duration and specialized nature of the services might limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are being used for critical strategic planning and program management support for Air Force research. The effectiveness of competition and cost controls will determine the ultimate taxpayer impact.
Public Impact
Supports advanced research and development for the Air Force Research Laboratory. Ensures continuity in strategic planning and program management for critical defense initiatives. Potential for technology transfer and innovation stemming from the supported research.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long contract duration may reduce flexibility and increase risk of cost escalation.
- Limited visibility into specific performance metrics and deliverables.
Positive Signals
- Awarded under full and open competition.
- Supports critical Air Force research and development mission.
- Contractor is a well-established defense industry leader.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting advanced research and development for the Department of Defense. Spending in this area is crucial for maintaining technological superiority but requires careful oversight to ensure value for money.
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 will be crucial given the CPFF contract type and long duration. The Department of the Air Force must ensure rigorous monitoring of costs, performance, and adherence to the contract's scope to ensure accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (5 years).
- Potential for scope creep without strict management.
- Limited visibility into specific deliverables and performance metrics.
- Reliance on a single large contractor.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF STRATEGIC PLAN, BUS ANALYSIS,&PROGRAM MGMT SUPP, AFRL/RXM
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 $35.0 million.
What is the period of performance?
Start: 2017-10-16. End: 2022-10-16.
What specific performance metrics are in place to ensure the value derived from this $35M contract aligns with the strategic goals of AFRL/RXM?
The provided data does not detail specific performance metrics. Effective oversight would require the Department of the Air Force to establish clear, measurable objectives tied to AFRL/RXM's strategic plan. These metrics should cover aspects like research progress, program management efficiency, and the successful execution of strategic initiatives to ensure taxpayer value.
How does the Cost Plus Fixed Fee structure mitigate the risk of cost overruns for specialized engineering services over a five-year period?
The CPFF structure inherently carries a risk of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation relies heavily on robust government oversight, detailed cost tracking, and strict adherence to the contract's scope. Regular audits and performance reviews are essential to control costs and ensure the fixed fee remains appropriate for the work performed.
What is the anticipated impact of this contract on the Air Force's long-term technological advancement and readiness?
This contract is intended to provide essential strategic planning and program management support for AFRL/RXM, a key entity for Air Force technological advancement. By ensuring continuity and expertise in these areas, the contract aims to bolster the Air Force's research pipeline, accelerate innovation, and ultimately enhance long-term readiness and maintain a competitive technological edge.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $71,888,677
Exercised Options: $47,703,534
Current Obligation: $35,034,554
Actual Outlays: $73,831
Subaward Activity
Number of Subawards: 270
Total Subaward Amount: $254,958,590
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU125
IDV Type: IDC
Timeline
Start Date: 2017-10-16
Current End Date: 2022-10-16
Potential End Date: 2023-04-30 00:00:00
Last Modified: 2024-03-07
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