DoD's $2.6M Counter Air R&D Contract Awarded to Northrop Grumman Under Full and Open Competition

Contract Overview

Contract Amount: $2,617,500 ($2.6M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2025-07-02

End Date: 2027-07-01

Contract Duration: 729 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: COUNTER AIR SCIENCE AND TECHNOLOGY 2

Place of Performance

Location: NORTHRIDGE, LOS ANGELES County, CALIFORNIA, 91324

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $2.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: COUNTER AIR SCIENCE AND TECHNOLOGY 2 Key points: 1. Contract focuses on critical Counter Air R&D, a key defense capability. 2. Northrop Grumman, a major defense contractor, secured the award. 3. Full and open competition suggests a competitive bidding process. 4. The contract duration is 2 years, with a $2.6M ceiling. 5. NAICS code 541715 indicates R&D in physical, engineering, and life sciences.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed carefully. The award amount of $2.6M for a 2-year R&D effort appears reasonable for specialized research, but a direct per-unit cost comparison is not applicable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayer funds are being used for advanced research and development in a critical defense area. The competitive nature of the award aims to ensure efficient use of these funds.

Public Impact

Enhances national security through advancements in counter-air technology. Supports innovation in the aerospace and defense research sector. Potential for technological spin-offs benefiting other industries. Creates high-skilled jobs in research and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • CPFF contracts carry inherent risk of cost overruns.
  • R&D projects are subject to technical and schedule risks.
  • Reliance on a single large contractor for critical R&D.

Positive Signals

  • Awarded through full and open competition.
  • Focuses on a high-priority defense capability.
  • Long-term contract duration allows for sustained development.

Sector Analysis

This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Defense R&D spending is a significant portion of the federal budget, with significant investment in areas like aerospace and advanced technologies.

Small Business Impact

The data indicates this contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no explicit indication of small business participation or subcontracting in the provided data.

Oversight & Accountability

The Department of the Air Force is the awarding agency, implying established oversight mechanisms for R&D contracts. The CPFF structure necessitates close monitoring of costs and progress to ensure accountability.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Cost overruns due to CPFF structure.
  • Technical feasibility and performance risks inherent in R&D.
  • Potential for schedule delays impacting capability development.
  • Limited visibility into specific research objectives.
  • Dependency on a single large contractor.

Tags

research-and-development-in-the-physical, department-of-defense, ca, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. COUNTER AIR SCIENCE AND TECHNOLOGY 2

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 $2.6 million.

What is the period of performance?

Start: 2025-07-02. End: 2027-07-01.

What specific counter-air technologies or capabilities does this R&D effort aim to advance?

The provided data does not specify the exact counter-air technologies. However, given the NAICS code and the defense context, it likely pertains to areas such as advanced missile defense, electronic warfare systems, integrated air defense systems, or next-generation fighter aircraft capabilities. Further details would be found in the contract's statement of work.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

Key performance indicators for this R&D contract would typically focus on achieving specific technical milestones, demonstrating proof-of-concept for new technologies, and adhering to project timelines and budget constraints. Success measurement would likely involve technical reviews, prototype demonstrations, and final reports assessing the feasibility and potential of the developed solutions.

What is the potential for this research to be transitioned into operational systems or future procurement?

The transition potential is generally high for defense R&D contracts aimed at critical capabilities like counter-air. Successful research outcomes could lead to further development phases, prototype testing, and eventual integration into existing or new military platforms. The Air Force's involvement suggests a clear pathway for potential operationalization if the research proves successful and cost-effective.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 9401 CORBIN AVE, NORTHRIDGE, CA, 91324

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: $15,913,300

Exercised Options: $8,546,323

Current Obligation: $2,617,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA865124DB002

IDV Type: IDC

Timeline

Start Date: 2025-07-02

Current End Date: 2027-07-01

Potential End Date: 2027-07-01 00:00:00

Last Modified: 2026-01-05

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