DoD Awards $1.19 Billion for Common Tactical Edge Network to Northrop Grumman
Contract Overview
Contract Amount: $11,948,270 ($11.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-07-11
End Date: 2026-03-10
Contract Duration: 1,338 days
Daily Burn Rate: $8.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: COMMON TACTICAL EDGE NETWORK - NORTHROP GRUMMAN
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92128
Plain-Language Summary
Department of Defense obligated $11.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: COMMON TACTICAL EDGE NETWORK - NORTHROP GRUMMAN Key points: 1. Significant investment in advanced tactical networking capabilities. 2. Northrop Grumman is a major defense contractor, indicating established capabilities. 3. Potential for technological advancements but also risks associated with large-scale R&D contracts. 4. Spending falls within the R&D sector, specifically physical and engineering sciences.
Value Assessment
Rating: good
The contract value of $1.19 billion is substantial for R&D. Benchmarking is difficult without specific deliverables, but it appears to be a significant investment for developing a complex tactical network.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and aims for the best value.
Taxpayer Impact: Taxpayer funds are being used for critical defense infrastructure development, aiming for enhanced military operational effectiveness.
Public Impact
Enhances battlefield communication and data sharing for U.S. Air Force personnel. Supports modernization efforts in military technology and network infrastructure. Potential for dual-use applications benefiting civilian sectors through technological spin-offs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Scope creep in large R&D projects.
- Integration challenges with existing systems.
- Technological obsolescence before deployment.
- Dependency on a single contractor for critical technology.
Positive Signals
- Potential for significant technological advancement.
- Strengthens U.S. military's tactical communication capabilities.
- Competition likely drove a competitive price.
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for maintaining technological superiority but can be subject to long development cycles and evolving requirements.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no explicit mention of small business participation in the provided data, suggesting potential for subcontracting opportunities.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. Given the contract's duration and value, robust oversight mechanisms will be critical to ensure performance, cost control, and adherence to requirements.
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 in R&D.
- Risk of integration issues with legacy systems.
- Dependency on a single large prime contractor.
- Long development timeline increases risk of obsolescence.
- Cybersecurity vulnerabilities in a complex network.
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 $11.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. COMMON TACTICAL EDGE NETWORK - NORTHROP GRUMMAN
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 $11.9 million.
What is the period of performance?
Start: 2022-07-11. End: 2026-03-10.
What specific performance metrics will be used to evaluate the success of the Common Tactical Edge Network development?
Success metrics will likely focus on the network's ability to reliably transmit data, maintain secure connections under various operational conditions, and integrate seamlessly with existing and future military platforms. Specific benchmarks for latency, bandwidth, and uptime will be crucial for assessing the R&D's effectiveness and ensuring it meets the evolving tactical needs of the Air Force.
How will the Department of Defense mitigate the risk of technological obsolescence for a network developed over several years?
Mitigation strategies may include incorporating modular and adaptable designs, adhering to open system architectures, and establishing agile development processes. Regular reviews and testing against emerging technologies will be essential. The contract might also include provisions for phased upgrades or technology refresh cycles to ensure the network remains relevant throughout its lifecycle.
What is the projected return on investment for the $1.19 billion spent on this tactical network in terms of improved operational efficiency and mission success?
The ROI is expected to manifest through enhanced situational awareness, faster decision-making, and improved coordination across dispersed units. Quantifying this precisely is challenging, but the investment aims to provide a significant strategic advantage, reducing mission risks and potentially lowering long-term operational costs through increased efficiency and reduced communication failures.
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: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 15120 INNOVATION DR, SAN DIEGO, CA, 92128
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,600,582
Exercised Options: $12,198,965
Current Obligation: $11,948,270
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $201,309
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA872618D0005
IDV Type: IDC
Timeline
Start Date: 2022-07-11
Current End Date: 2026-03-10
Potential End Date: 2026-03-10 00:00:00
Last Modified: 2025-12-16
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