Northrop Grumman awarded $14.7M for Open Architecture Management Standards R&D by DoD
Contract Overview
Contract Amount: $14,704,578 ($14.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-01-01
End Date: 2023-12-31
Contract Duration: 729 days
Daily Burn Rate: $20.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: OPEN ARCHITECTURE MANAGEMENT STANDARDS
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $14.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: OPEN ARCHITECTURE MANAGEMENT STANDARDS Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Awarded under full and open competition after exclusion of sources, indicating a specific procurement process. 3. The contract duration is 729 days, suggesting a medium-term R&D effort. 4. The North American Industry Classification System (NAICS) code 541715 points to specialized R&D services. 5. The contract type is Cost Plus Fixed Fee (CPFF), common for R&D where costs are uncertain. 6. The base year for this contract was 2017, with a significant delivery order in 2022. 7. The awardee, Northrop Grumman Systems Corporation, is a major defense contractor.
Value Assessment
Rating: fair
Benchmarking the value of this R&D contract is challenging without specific deliverables or performance metrics. The CPFF structure allows for cost reimbursement plus a fixed fee, which can lead to cost overruns if not managed tightly. Comparing to similar R&D contracts in the physical and engineering sciences is difficult due to the specialized nature of 'Open Architecture Management Standards.' The total award amount of $14.7 million over a 729-day period suggests a moderate investment for a research project of this type.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, specific sources were excluded, possibly due to security, proprietary information, or unique capabilities required for the research. The number of bidders is not specified, but the exclusion of sources suggests a potentially narrowed field compared to truly full and open competition.
Taxpayer Impact: The exclusion of sources may limit the number of potential offerors, potentially impacting the government's ability to secure the lowest possible price through broad market competition.
Public Impact
The Department of Defense benefits from advancements in open architecture management standards, potentially leading to more interoperable and adaptable systems. This contract supports research and development activities, contributing to technological innovation within the defense sector. The geographic impact is primarily within Florida, where the contract is managed by the Defense Contract Management Agency. Workforce implications include specialized R&D personnel, engineers, and scientists employed by Northrop Grumman.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize higher spending if not rigorously monitored.
- Exclusion of sources in competition may limit price discovery and potentially increase costs for taxpayers.
- The long duration and R&D nature introduce inherent risks of project scope creep or failure to achieve desired outcomes.
Positive Signals
- Award to a major defense contractor like Northrop Grumman suggests access to significant expertise and resources.
- Focus on 'Open Architecture Management Standards' aligns with industry trends towards interoperability and modularity.
- The contract is managed by the Defense Contract Management Agency, indicating established oversight processes.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for R&D services in defense is substantial, with significant government investment aimed at maintaining technological superiority. Open architecture is a critical concept in modern defense systems, promoting interoperability and reducing vendor lock-in. Comparable spending benchmarks would typically involve other large-scale R&D efforts in systems engineering and software development for defense applications.
Small Business Impact
There is no indication of small business set-asides for this contract. Given the nature of the R&D and the prime contractor, it is unlikely that significant subcontracting opportunities would be specifically targeted towards small businesses unless they possess highly specialized niche capabilities relevant to open architecture standards.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration and oversight. The Cost Plus Fixed Fee (CPFF) structure requires detailed cost reporting and auditing to ensure compliance and prevent overspending. Inspector General jurisdiction would apply for any allegations of fraud, waste, or abuse related to this contract.
Related Government Programs
- Department of Defense Research and Development Programs
- Systems Engineering Contracts
- Software Development Contracts
- Defense Technology Innovation Initiatives
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Limited competition may impact price.
- R&D projects carry inherent risks of not achieving desired outcomes.
Tags
research-and-development, department-of-defense, northrop-grumman, cost-plus-fixed-fee, limited-competition, defense-contract-management-agency, florida, systems-engineering, open-architecture, management-standards
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. OPEN ARCHITECTURE MANAGEMENT STANDARDS
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $14.7 million.
What is the period of performance?
Start: 2022-01-01. End: 2023-12-31.
What specific 'Open Architecture Management Standards' are being developed or researched under this contract?
The specific 'Open Architecture Management Standards' are not detailed in the provided data. However, in the context of defense and engineering, open architecture typically refers to systems designed with well-defined interfaces and modular components, allowing for easier integration, upgrades, and interoperability between different systems and vendors. Research in this area likely focuses on developing frameworks, protocols, and best practices to ensure these standards are robust, secure, and adaptable to future technological advancements and evolving mission requirements. This could involve defining data formats, communication protocols, and system integration methodologies.
How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact cost and innovation compared to standard full and open competition?
The 'Full and Open Competition After Exclusion of Sources' method implies that while the competition was initially open, certain potential offerors were excluded based on specific criteria. This could be due to national security concerns, proprietary technology, or the need for highly specialized expertise that only a limited number of entities possess. While it aims to ensure the best possible solution is considered from the eligible pool, it can restrict the breadth of competition compared to a standard full and open process. This narrowed competition might lead to less aggressive pricing from the remaining bidders and potentially limit the range of innovative approaches considered, as the excluded sources might have offered unique solutions.
What are the key performance indicators (KPIs) or milestones for this R&D contract?
The provided data does not specify the key performance indicators (KPIs) or milestones for this R&D contract. For Cost Plus Fixed Fee (CPFF) R&D contracts, milestones are typically tied to the delivery of research reports, prototypes, technical data packages, or successful demonstrations of concepts. Performance is often assessed based on the progress made towards defined research objectives, the quality of deliverables, and adherence to the research plan. The government contracting officer and technical representatives would monitor these aspects throughout the contract's duration.
What is the historical spending trend for R&D related to 'Open Architecture Management Standards' within the Department of Defense?
The provided data only includes details for this specific $14.7 million contract awarded in 2022 with a base year of 2017. To determine historical spending trends for R&D related to 'Open Architecture Management Standards' within the Department of Defense, a broader analysis of federal procurement databases (like FPDS or USASpending) would be necessary. This would involve searching for contracts with similar NAICS codes (e.g., 541715) and keywords related to 'open architecture,' 'interoperability,' 'standards,' and 'systems engineering' across multiple fiscal years. Such an analysis would reveal the overall investment level and any patterns of increasing or decreasing funding in this specific R&D area.
What is Northrop Grumman's track record with similar R&D contracts, particularly those involving complex systems integration or standardization?
Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in research and development across various domains, including aerospace, defense electronics, and information systems. They have a well-established track record of managing large, complex R&D programs for the Department of Defense and other government agencies. Their expertise often involves systems integration, advanced technology development, and the creation of robust engineering solutions. While specific details on their past performance with 'Open Architecture Management Standards' are not provided here, their general profile suggests they are capable of undertaking such specialized R&D efforts, often involving significant technical challenges and stringent performance requirements.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 9
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 2000 W NASA BLVD, MELBOURNE, FL, 32904
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: $15,304,578
Exercised Options: $15,304,578
Current Obligation: $14,704,578
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA860419D4024
IDV Type: IDC
Timeline
Start Date: 2022-01-01
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2025-09-22
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