DoD's $1.68B Open Architecture Standards Management Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $16,819,518 ($16.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-01-05
End Date: 2026-01-31
Contract Duration: 757 days
Daily Burn Rate: $22.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 29
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: OPEN ARCHITECTURE STANDARDS MANAGEMENT
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $16.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: OPEN ARCHITECTURE STANDARDS MANAGEMENT Key points: 1. Significant investment in R&D for advanced physical and engineering sciences. 2. Northrop Grumman, a major defense contractor, secured the award. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract focuses on research and development, indicating potential for innovation.
Value Assessment
Rating: good
The contract value of $1.68 billion over 757 days is substantial. Benchmarking against similar R&D contracts in physical and engineering sciences is difficult without more specific scope details, but the duration and value suggest a significant undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield a fair price discovery for the services required.
Taxpayer Impact: Taxpayer funds are being utilized for research and development, aiming to advance technological capabilities within the Department of Defense. The competitive award process should ensure efficient use of these funds.
Public Impact
Enhances national security through advanced research and development. Supports technological innovation in critical defense systems. Potential for spin-off technologies benefiting the commercial sector. Creates high-skilled jobs in the R&D field.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus fixed fee contracts can sometimes lead to cost overruns if not managed tightly.
- Long contract duration may present challenges in adapting to rapidly evolving technological landscapes.
- Reliance on a single large contractor for critical R&D standards.
Positive Signals
- Full and open competition promotes fairness and potentially better pricing.
- Focus on open architecture standards can lead to greater interoperability and reduced long-term costs.
- Significant investment in a key R&D area for national security.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for maintaining a technological edge, with significant government investment often directed towards defense and aerospace applications.
Small Business Impact
While the prime contractor is a large corporation, the nature of R&D contracts often involves subcontracting opportunities for specialized small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Air Force is the awarding agency, implying oversight through their established procurement and program management structures. Regular reporting and milestone reviews are standard for contracts of this magnitude.
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
- Potential for cost overruns inherent in CPFF contracts.
- Risk of technological obsolescence during the long contract period.
- Dependency on a single contractor for critical standards development.
- Ensuring true open architecture adoption across diverse DoD systems.
- Measuring the tangible impact of R&D on operational effectiveness.
Tags
research-and-development-in-the-physical, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. OPEN ARCHITECTURE STANDARDS MANAGEMENT
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 $16.8 million.
What is the period of performance?
Start: 2024-01-05. End: 2026-01-31.
What specific open architecture standards are being developed or managed under this contract, and how do they align with current and future DoD interoperability goals?
The contract aims to develop and manage open architecture standards crucial for enhancing interoperability across diverse defense systems. These standards are intended to facilitate easier integration of new technologies, reduce vendor lock-in, and improve overall system flexibility, directly supporting the DoD's strategic goals for seamless communication and data sharing across its platforms.
What are the key performance indicators (KPIs) and metrics used to assess the success and effectiveness of Northrop Grumman's performance in managing these standards?
Success will likely be measured by adherence to development timelines, the successful implementation and adoption of the defined standards across relevant programs, and the achievement of interoperability milestones. Key metrics may include the number of standards successfully ratified, the reduction in integration times for new systems, and positive feedback from user communities regarding system compatibility.
Given the Cost Plus Fixed Fee (CPFF) structure, what mechanisms are in place to control costs and ensure value for money throughout the contract's duration?
The CPFF structure requires robust oversight to manage costs effectively. Mechanisms likely include detailed budget reviews, stringent milestone-based payment approvals, regular performance reviews to ensure efficiency, and clear definitions of allowable costs. The fixed fee component incentivizes the contractor to complete the work within the estimated cost base to maximize their profit.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 29
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,819,518
Exercised Options: $16,819,518
Current Obligation: $16,819,518
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $569,317
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA868423DB079
IDV Type: IDC
Timeline
Start Date: 2024-01-05
Current End Date: 2026-01-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2026-03-19
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