DoD's $45.4M Northrop Grumman contract for PARCS radar sustainment shows engineering services value
Contract Overview
Contract Amount: $45,391,067 ($45.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-06-01
End Date: 2024-05-31
Contract Duration: 2,191 days
Daily Burn Rate: $20.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Defense
Official Description: IGF::OT::IGF SUSTAINMENT SERVICES FOR PARCS RADAR SYSTEM.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $45.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF SUSTAINMENT SERVICES FOR PARCS RADAR SYSTEM. Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. Engineering services are critical for maintaining complex defense systems like PARCS radar. 3. The contract duration of 6 years indicates a long-term need for sustainment. 4. Northrop Grumman's role as a major defense contractor suggests established expertise. 5. The contract's value is significant within the defense engineering services sector. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.
Value Assessment
Rating: good
The contract value of approximately $45.4 million over six years for sustainment services for the PARCS radar system appears reasonable given the critical nature of the asset and the specialized engineering expertise required. Benchmarking against similar long-term sustainment contracts for complex defense systems would provide a more precise value-for-money assessment. However, the absence of detailed cost breakdowns makes a granular comparison difficult. The contract type (Cost No Fee) suggests that the government is bearing the cost risk, which is common for R&D or complex engineering efforts where costs are uncertain.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. This competitive process is generally expected to drive better pricing and innovation. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competition rather than a limited or sole-source award.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of solutions, ensuring that government funds are used efficiently.
Public Impact
The primary beneficiaries are the Department of Defense, ensuring the operational readiness of the PARCS radar system. Services delivered include sustainment, maintenance, and engineering support for a critical defense asset. The geographic impact is likely concentrated around the operational locations of the PARCS radar system, which is a key component of the U.S. missile defense architecture. Workforce implications include employment for specialized engineers and technicians within Northrop Grumman and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee contract type places cost risk on the government, which could lead to cost overruns if not managed effectively.
- Lack of specific performance metrics or detailed cost breakdowns makes independent assessment of value challenging.
- Reliance on a single large contractor for sustainment of a critical system could pose long-term dependency risks.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
- Long contract duration (6 years) indicates a stable, long-term need and commitment to system readiness.
- Northrop Grumman is a well-established defense contractor with significant experience in complex systems.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense systems. The market for defense engineering services is substantial, driven by the need to maintain and upgrade complex military hardware. Spending in this area is often characterized by long-term contracts, specialized expertise, and significant government investment. Comparable spending benchmarks would involve looking at other sustainment contracts for major radar, aerospace, or command and control systems within the DoD.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false) and was not awarded to a small business (ss: false). This suggests that the primary award went to a large defense contractor, Northrop Grumman. While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of a specific set-aside means that direct opportunities for small businesses to compete for the prime contract were limited in this instance.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The contract type (Cost No Fee) implies that financial oversight will focus on ensuring that costs incurred are reasonable and allocable to the contract. Transparency is generally maintained through contract award databases and reporting requirements, though detailed performance data may be sensitive.
Related Government Programs
- Missile Defense Systems Sustainment
- Radar System Maintenance Contracts
- Department of Defense Engineering Services
- Northrop Grumman Defense Contracts
- Long-Term Defense Support Agreements
Risk Flags
- Cost Control Risk (CNF Contract Type)
- Potential for Contractor Dependency
- Limited Small Business Participation
Tags
defense, engineering-services, northrop-grumman, radar-system, sustainment, full-and-open-competition, cost-plus, department-of-defense, missile-defense, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF SUSTAINMENT SERVICES FOR PARCS RADAR SYSTEM.
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 $45.4 million.
What is the period of performance?
Start: 2018-06-01. End: 2024-05-31.
What is the historical spending trend for PARCS radar system sustainment by the Department of Defense?
Analyzing historical spending for the PARCS radar system sustainment requires accessing historical contract data beyond the current award. Without specific prior contract numbers or detailed budget information, a precise trend is difficult to establish. However, the current six-year contract valued at approximately $45.4 million suggests a consistent and significant investment in maintaining this critical defense asset. Typically, sustainment costs for complex radar systems are ongoing and can fluctuate based on system upgrades, component replacements, and operational tempo. A trend analysis would ideally involve examining spending over multiple contract cycles, looking for patterns of increasing or decreasing costs, and correlating these with technological advancements or system obsolescence.
How does the per-unit cost of sustainment for the PARCS radar compare to similar radar systems within the DoD?
Determining a precise 'per-unit cost' for sustainment of the PARCS radar system is challenging without more granular data on the number of units or specific components being sustained and the associated costs. The contract is a total package for sustainment services, not broken down by individual radar units. To compare, one would need to identify comparable radar systems within the DoD (e.g., other early warning or air defense radars), find their sustainment contracts, and attempt to normalize the data based on system complexity, age, and operational requirements. Given the specialized nature of the PARCS system and its role in missile defense, direct comparisons might be limited, and costs could be higher due to unique requirements and limited competition for specialized parts or expertise.
What are the key performance indicators (KPIs) used to measure the success of this PARCS radar sustainment contract?
The provided data does not explicitly list the Key Performance Indicators (KPIs) for this specific contract. However, for sustainment contracts of critical defense systems like the PARCS radar, typical KPIs would likely include metrics related to system availability (uptime), response time for maintenance actions, Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), and the successful completion of scheduled maintenance and inspections. The 'Cost No Fee' (CNF) contract type often implies that the contractor is reimbursed for allowable costs, with profit determined separately. In such cases, performance might be monitored through adherence to schedules, technical performance standards, and overall system readiness contributions, rather than direct cost-efficiency incentives.
What is Northrop Grumman's track record with similar large-scale radar sustainment contracts?
Northrop Grumman has a significant track record in supporting and sustaining large-scale defense systems, including radar platforms. They are a major prime contractor for various U.S. military branches, involved in developing, producing, and maintaining complex electronic systems, including early warning radars, fire control radars, and airborne surveillance systems. Their experience often encompasses the full lifecycle support, from initial fielding through sustainment and upgrades. While specific details on past PARCS sustainment performance are not provided, Northrop Grumman's general portfolio suggests they possess the technical capabilities and infrastructure to manage such contracts. Evaluating their specific performance would require reviewing past contract performance reports (e.g., CPARS) if publicly available.
Are there any identified risks associated with the 'Cost No Fee' (CNF) contract type for this sustainment effort?
The 'Cost No Fee' (CNF) contract type, while common for research and development or complex engineering efforts where cost estimation is difficult, carries inherent risks, particularly for sustainment. The primary risk for the government is cost control. In a CNF contract, the contractor is reimbursed for all allowable costs, and the fee (profit) is fixed or zero. This means the government bears the brunt of any cost overruns. Effective oversight is crucial to ensure that costs are reasonable, allocable, and allowable. Without strong government cost monitoring and management, the total expenditure could exceed initial projections. For sustainment, where operational demands can be unpredictable, this lack of direct cost-sharing incentive for the contractor requires diligent program management from the government side.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 14119 SULLYFIELD CIR STE A, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $45,391,067
Exercised Options: $45,391,067
Current Obligation: $45,391,067
Actual Outlays: $2,728,360
Subaward Activity
Number of Subawards: 1101
Total Subaward Amount: $309,458,100
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA872318D0001
IDV Type: IDC
Timeline
Start Date: 2018-06-01
Current End Date: 2024-05-31
Potential End Date: 2024-05-31 00:00:00
Last Modified: 2025-07-28
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)