DoD's $131M Millimeter-Wave Digital Arrays (MIDAS) R&D contract awarded to Northrop Grumman for advanced sensor technology
Contract Overview
Contract Amount: $13,097,527 ($13.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-11-07
End Date: 2028-03-22
Contract Duration: 3,423 days
Daily Burn Rate: $3.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 32
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: MILLIMETER-WAVE DIGITAL ARRAYS (MIDAS)
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $13.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MILLIMETER-WAVE DIGITAL ARRAYS (MIDAS) Key points: 1. Contract awarded for advanced sensor research and development, indicating a focus on future defense capabilities. 2. The contract's cost-plus-fixed-fee structure allows for flexibility in research but requires close oversight of expenditures. 3. Northrop Grumman, a major defense contractor, brings significant experience to this complex R&D effort. 4. The long duration of the contract suggests a phased approach to developing and refining the technology. 5. This award falls within the broader category of physical, engineering, and life sciences R&D, excluding specialized fields. 6. The contract's value of $131 million over nearly 10 years highlights the significant investment in this technology area.
Value Assessment
Rating: fair
Benchmarking the value of this R&D contract is challenging due to its specialized nature and the lack of direct public comparisons for similar millimeter-wave digital array development. The cost-plus-fixed-fee (CPFF) pricing structure is common for R&D where exact costs are uncertain, but it necessitates rigorous monitoring to ensure costs remain reasonable and the fixed fee is justified by the scope of work. Without more detailed cost breakdowns or comparable contract data, a definitive value-for-money assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple capable vendors had the opportunity to bid. The presence of 32 bids indicates a robust competitive process, which is generally favorable for price discovery and innovation. A high number of bidders typically pressures contractors to offer competitive pricing and technical solutions.
Taxpayer Impact: The full and open competition for this significant R&D contract is beneficial for taxpayers as it likely led to a more competitive price and a wider range of innovative solutions being considered, maximizing the return on investment for defense technology.
Public Impact
The primary beneficiaries are the Department of Defense, which will gain advanced sensor capabilities for potential future applications. The contract supports research and development in advanced millimeter-wave digital array technology. The geographic impact is primarily within Maryland, where Northrop Grumman's operations are located. This contract will likely involve highly skilled engineers and scientists, contributing to the specialized workforce in the defense technology sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to cost overruns if not managed diligently.
- The long contract duration increases the risk of technological obsolescence or shifts in strategic priorities.
- The specialized nature of the technology may limit the pool of truly competitive follow-on opportunities.
Positive Signals
- Awarded under full and open competition, ensuring a broad range of potential solutions were considered.
- Northrop Grumman is a well-established defense contractor with a strong track record in advanced technologies.
- The contract supports critical R&D for future defense capabilities, aligning with strategic national security goals.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering. The market for advanced sensor technology, particularly millimeter-wave systems, is a critical and growing area within the defense industry, driven by the need for enhanced surveillance, targeting, and electronic warfare capabilities. Spending in this niche R&D area is often characterized by long development cycles and significant investment, with contracts typically awarded to large, specialized defense contractors.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Given the specialized and advanced nature of millimeter-wave digital array research, it is likely that the prime contractor, Northrop Grumman, will engage subcontractors. However, the extent to which small businesses will participate in subcontracting is not detailed in the provided data. Further analysis would be needed to determine the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Air Force, a component of the Department of Defense. As a cost-plus-fixed-fee contract, rigorous financial oversight is crucial to monitor expenditures against the estimated costs and ensure the fixed fee remains appropriate for the work performed. Transparency will depend on the reporting requirements stipulated in the contract and the DoD's public disclosure policies regarding R&D projects.
Related Government Programs
- Advanced Sensor Development Programs
- Millimeter-Wave Technology Research
- Department of Defense Research and Development
- Northrop Grumman Defense Contracts
Risk Flags
- Cost Overrun Risk (CPFF Structure)
- Technological Obsolescence
- Long-Term R&D Uncertainty
Tags
department-of-defense, department-of-the-air-force, northrop-grumman-systems-corporation, research-and-development, millimeter-wave, digital-arrays, full-and-open-competition, definitive-contract, cost-plus-fixed-fee, maryland, advanced-technology, sensor-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. MILLIMETER-WAVE DIGITAL ARRAYS (MIDAS)
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 $13.1 million.
What is the period of performance?
Start: 2018-11-07. End: 2028-03-22.
What is Northrop Grumman's track record with similar R&D contracts for the Department of Defense?
Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in research and development across various domains, including advanced sensors, aerospace, and defense electronics. They have a long history of securing and executing large, complex R&D contracts with the Department of Defense and other government agencies. While specific details on past millimeter-wave digital array projects are not provided here, their overall portfolio suggests a strong capability in developing cutting-edge technologies. Their performance on previous contracts, including adherence to schedules, budget management, and technical innovation, would be a key factor in assessing their suitability for this MIDAS contract. Historical data on their contract awards and performance ratings would offer further insight.
How does the $131 million contract value compare to similar R&D efforts in advanced sensor technology?
Assessing the $131 million value requires context within the specialized field of millimeter-wave digital array research. Such advanced R&D projects are inherently costly due to the need for highly skilled personnel, specialized equipment, and long development timelines. Without direct public benchmarks for comparable MIDAS-like R&D, it's difficult to make a precise comparison. However, significant investments in advanced defense technologies, particularly in areas like radar, electronic warfare, and signal processing, often run into hundreds of millions of dollars over several years. The contract's duration (nearly 10 years) and its classification as R&D suggest that this figure represents a substantial, multi-phase investment rather than a short-term procurement.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for R&D?
The primary risks with a CPFF contract for R&D, like the MIDAS project, revolve around cost control and ensuring value. While CPFF allows flexibility for research where costs can be unpredictable, it places the financial risk on the government if costs exceed estimates. The 'fixed fee' component is negotiated upfront, but the government bears the burden of actual allowable costs. Key risks include potential cost overruns if the research proves more complex or time-consuming than anticipated, and the contractor may have less incentive to control costs compared to fixed-price contracts. Effective oversight is critical to scrutinize expenditures, validate the necessity of costs incurred, and ensure the fixed fee remains commensurate with the effort and risk undertaken by the contractor.
How does the 'Research and Development in the Physical, Engineering, and Life Sciences' classification impact the contract's scope?
The classification 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' (NAICS code 541715) broadly defines the scientific and technical domain for this contract. It indicates that the work involves fundamental research, applied research, and experimental development within physics, engineering disciplines, and life sciences, but specifically excludes highly specialized areas like nanotechnology and biotechnology. For the MIDAS contract, this means the focus is on the physical principles and engineering applications of millimeter-wave digital arrays, likely involving materials science, electromagnetics, signal processing, and system integration, rather than biological or nanoscale innovations.
What does the high number of bids (32) suggest about the market for millimeter-wave digital array technology?
The submission of 32 bids for this contract, awarded under full and open competition, strongly suggests a healthy and competitive market for millimeter-wave digital array technology and related R&D services. A large number of bidders typically indicates that the technology is of significant interest across the industry, and that multiple companies possess the necessary expertise and capabilities to pursue such work. This level of competition is advantageous for the government, as it increases the likelihood of receiving innovative proposals and achieving favorable pricing. It also suggests that the barriers to entry for developing such technologies may not be prohibitively high for a diverse range of firms, or that existing players are actively seeking to expand their footprint in this area.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and 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
Solicitation ID: FA865019R7994
Offers Received: 32
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1580A W NURSERY RD, LINTHICUM HEIGHTS, MD, 21090
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: $14,149,281
Exercised Options: $13,097,527
Current Obligation: $13,097,527
Actual Outlays: $986,487
Subaward Activity
Number of Subawards: 75
Total Subaward Amount: $56,195,708
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-11-07
Current End Date: 2028-03-22
Potential End Date: 2028-03-22 00:00:00
Last Modified: 2026-03-25
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)