DoD's $34M GHO Acoustic Flight Demo with Northrop Grumman Faces R&D Spending Scrutiny
Contract Overview
Contract Amount: $34,018,879 ($34.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-02-10
End Date: 2026-04-03
Contract Duration: 2,244 days
Daily Burn Rate: $15.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: GREAT HORNED OWL (GHO): ACOUSTIC FLIGHT DEMONSTRATION
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $34.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: GREAT HORNED OWL (GHO): ACOUSTIC FLIGHT DEMONSTRATION Key points: 1. The contract focuses on R&D in physical sciences, a critical but often complex area for cost control. 2. Northrop Grumman, a major defense contractor, is the sole awardee, raising questions about competition. 3. The Cost Plus Fixed Fee (CPFF) structure can incentivize cost overruns if not managed tightly. 4. The project's duration of over 6 years suggests a long-term commitment with potential for evolving costs.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, while common in R&D, carries inherent risk for cost escalation. Benchmarking is difficult without detailed cost breakdowns, but the duration and complexity suggest significant potential for cost growth.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded under full and open competition, the sole awardee is Northrop Grumman. This suggests that while the process was open, only one entity met the requirements or was selected.
Taxpayer Impact: Taxpayer funds are committed to a long-term R&D project. The CPFF structure necessitates robust oversight to ensure costs remain reasonable and deliver value.
Public Impact
Advanced acoustic technology development for potential defense applications. Investment in cutting-edge research with long-term strategic implications. Potential for technological advancements that could impact future military capabilities. Long-term government commitment to a specific research area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost control risks with CPFF structure
- Long project duration (over 6 years)
- Sole awardee despite open competition
Positive Signals
- Focus on critical R&D area
- Award to established defense contractor
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but often involves higher risk and less predictable outcomes compared to procurement.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of small business participation in the provided data.
Oversight & Accountability
The CPFF contract type requires diligent oversight from the Department of the Air Force to monitor costs, progress, and ensure the contractor is managing the project effectively and 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
- Cost Plus Fixed Fee (CPFF) contract type
- Long contract duration (2244 days)
- Sole awardee (Northrop Grumman)
- Research and Development focus (inherent risk)
- Lack of specified small business participation
Tags
research-and-development-in-the-physical, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. GREAT HORNED OWL (GHO): ACOUSTIC FLIGHT DEMONSTRATION
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 $34.0 million.
What is the period of performance?
Start: 2020-02-10. End: 2026-04-03.
What specific performance metrics will be used to assess the success of the acoustic flight demonstration and justify the CPFF expenditure?
Success metrics for the GHO Acoustic Flight Demonstration are likely tied to achieving specific acoustic performance thresholds during flight tests. This could include measurable reductions in noise signatures, validation of novel acoustic dampening technologies, and successful integration of these systems onto an aircraft platform. The CPFF structure necessitates clear, quantifiable objectives to ensure taxpayer funds are used effectively towards demonstrable R&D advancements.
How will the Department of Defense mitigate the risk of cost overruns inherent in a long-term, sole-source CPFF R&D contract?
Mitigation strategies for cost overruns in this CPFF contract likely involve stringent Earned Value Management (EVM) systems, regular technical reviews, and robust financial oversight. The Air Force must closely monitor Northrop Grumman's cost performance against baselines, scrutinize any proposed changes, and ensure that fee objectives are tied to achieving key milestones. Independent cost estimates and regular audits can also provide checks and balances.
What is the projected long-term strategic value or application of the GHO Acoustic Flight Demonstration beyond its immediate R&D objectives?
The long-term strategic value of the GHO Acoustic Flight Demonstration could lie in developing next-generation stealth or low-observable technologies, enhancing operational effectiveness through reduced acoustic signatures, or creating new capabilities for intelligence, surveillance, and reconnaissance (ISR) platforms. Successful outcomes might lead to significant advancements in aerospace engineering and provide a competitive technological edge for the U.S. military.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA865017S2003
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: ONE HORNET WAY, EL SEGUNDO, CA, 90245
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: $36,620,160
Exercised Options: $36,620,160
Current Obligation: $34,018,879
Actual Outlays: $5,274,142
Subaward Activity
Number of Subawards: 56
Total Subaward Amount: $69,527,702
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA865017D2719
IDV Type: IDC
Timeline
Start Date: 2020-02-10
Current End Date: 2026-04-03
Potential End Date: 2026-04-03 00:00:00
Last Modified: 2025-12-18
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