DoD awards $24.75M to Northrop Grumman for JSTARS recapitalization engineering, a critical defense program
Contract Overview
Contract Amount: $24,750,000 ($24.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2015-08-07
End Date: 2016-07-06
Contract Duration: 334 days
Daily Burn Rate: $74.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: JSTARS RECAP, PRE-ENGINEERING&MANUFACTURING DEVELOPMENT EFFORT
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $24.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: JSTARS RECAP, PRE-ENGINEERING&MANUFACTURING DEVELOPMENT EFFORT Key points: 1. The contract supports the Joint Surveillance Target Attack Radar System (JSTARS) recapitalization, a significant modernization effort for the Air Force. 2. Northrop Grumman, a major defense contractor, was selected for this pre-engineering and manufacturing development phase. 3. The contract value of $24.75 million represents an investment in the foundational stages of a complex aircraft and sensor system. 4. The firm-fixed-price contract type suggests a defined scope and cost structure for this phase. 5. The duration of 334 days indicates a focused effort on specific engineering and development tasks. 6. The award was made under full and open competition, implying a broad search for qualified bidders.
Value Assessment
Rating: good
The contract value of $24.75 million for pre-engineering and manufacturing development for the JSTARS recapitalization appears reasonable given the complexity of modernizing a critical intelligence, surveillance, and reconnaissance (ISR) platform. Benchmarking against similar large-scale defense system development contracts, this initial phase represents a fraction of the total program cost, which is typical. The firm-fixed-price structure provides cost certainty for this specific effort.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that the Department of Defense sought proposals from all responsible sources. While the number of bidders is not specified, this approach generally fosters a competitive environment, encouraging multiple companies to submit proposals and potentially leading to better pricing and innovative solutions. The selection of Northrop Grumman suggests they offered the best value proposition among the competing entities.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings and ensures that the government receives the best possible technical solutions at competitive prices.
Public Impact
The primary beneficiaries are the U.S. Air Force and the Department of Defense, who will receive enhanced ISR capabilities. The services delivered include pre-engineering and manufacturing development, crucial for the future JSTARS recapitalization. The geographic impact is primarily national, supporting defense readiness, though specific operational deployments will be global. Workforce implications include highly skilled engineering and technical roles within Northrop Grumman and its potential subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in later, more complex phases of the JSTARS recapitalization program.
- Dependence on a single prime contractor for a critical national security asset.
- Technological obsolescence risks if development timelines are not met or if future threats evolve rapidly.
Positive Signals
- Awarded under full and open competition, suggesting a robust selection process.
- Firm-fixed-price contract provides cost control for this specific development phase.
- Northrop Grumman is an established defense contractor with significant experience in complex systems integration.
Sector Analysis
The JSTARS recapitalization falls within the aerospace and defense sector, specifically focusing on advanced ISR platforms. This sector is characterized by long development cycles, high R&D investment, and significant government procurement. The market for such specialized defense systems is dominated by a few large, experienced contractors. Comparable spending benchmarks would involve other major aircraft modernization programs or new platform development efforts, which often run into billions of dollars over their lifecycle.
Small Business Impact
There is no explicit indication of a small business set-aside for this particular contract. However, large prime contractors like Northrop Grumman are typically required to meet subcontracting goals for small businesses as part of their overall contract obligations. The success of this phase could lead to future subcontracting opportunities for small businesses involved in specialized engineering or manufacturing support.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force's program management and contracting offices. The Defense Contract Management Agency (DCMA) likely provides on-site oversight. Transparency is facilitated through contract award announcements and reporting requirements. The Inspector General of the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Joint Surveillance Target Attack Radar System (JSTARS)
- Airborne Early Warning and Control (AEW&C) Systems
- Intelligence, Surveillance, and Reconnaissance (ISR) Platforms
- Defense Acquisition Programs
Risk Flags
- Program complexity
- Technological integration risk
- Long-term sustainment planning
- Budgetary uncertainty for future phases
Tags
defense, department-of-defense, air-force, engineering-services, northrop-grumman, full-and-open-competition, firm-fixed-price, intelligence-surveillance-reconnaissance, aircraft-modernization, florida, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. JSTARS RECAP, PRE-ENGINEERING&MANUFACTURING DEVELOPMENT EFFORT
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 $24.8 million.
What is the period of performance?
Start: 2015-08-07. End: 2016-07-06.
What is Northrop Grumman's track record with large-scale defense system development and modernization programs?
Northrop Grumman has a substantial track record in developing and modernizing complex defense systems. They are a major player in areas such as aerospace, defense electronics, and information systems. Notable programs include their work on the B-2 bomber, various satellite systems, and contributions to other major aircraft platforms. Their experience in integrating sophisticated sensors, communication systems, and airframes is extensive. This background suggests they possess the necessary expertise and infrastructure to handle the JSTARS recapitalization, although the scale and specific requirements of this program present unique challenges that will be further assessed in subsequent phases.
How does the $24.75 million award compare to the estimated total cost of the JSTARS recapitalization program?
The $24.75 million awarded for the pre-engineering and manufacturing development effort represents an initial investment phase for the JSTARS recapitalization. Total program costs for major defense acquisition programs, especially those involving aircraft modernization and new sensor integration, typically run into the billions of dollars over their lifecycle. This initial award is a relatively small portion of the overall anticipated expenditure, focusing on foundational design, analysis, and risk reduction. Subsequent phases, including system development, testing, and production, will account for the vast majority of the program's budget.
What are the primary technical risks associated with the JSTARS recapitalization program at this early stage?
At this pre-engineering and manufacturing development stage, the primary technical risks for the JSTARS recapitalization likely revolve around integrating new sensor technologies with a modernized airframe, ensuring interoperability with existing and future command and control systems, and meeting stringent performance requirements for surveillance and targeting. Challenges may also arise from the complexity of the software required to process and disseminate the vast amounts of data collected. Furthermore, ensuring the chosen airframe can effectively host the new systems and meet operational demands, while managing the transition from the legacy JSTARS fleet, presents significant technical hurdles.
What is the strategic importance of the JSTARS recapitalization program for the U.S. Air Force?
The JSTARS recapitalization program is strategically vital for the U.S. Air Force as it aims to maintain and enhance critical Intelligence, Surveillance, and Reconnaissance (ISR) capabilities. The current JSTARS fleet, based on the E-8C aircraft, is aging and becoming increasingly difficult and costly to maintain. A modernized platform will provide improved sensor performance, greater survivability, enhanced data processing and dissemination, and better integration with other military assets. This ensures the Air Force can continue to provide commanders with near real-time battlefield awareness and targeting information, which is crucial for modern joint operations and maintaining information dominance.
Have there been previous significant investments or contract awards related to the JSTARS recapitalization effort?
Yes, prior to this specific award for pre-engineering and manufacturing development, there have been earlier phases and investments related to the JSTARS recapitalization. These typically include market research, concept studies, technology development, and preliminary design efforts. The government often engages in multiple contract actions with various entities to explore different approaches and mature the technologies before committing to a full-scale development and production contract. This $24.75 million award signifies a progression into a more defined engineering phase, building upon the findings and analyses from earlier stages.
What are the potential implications of this contract award on future JSTARS development and procurement?
This contract award for pre-engineering and manufacturing development is a critical step that signals the progression of the JSTARS recapitalization program. It indicates that the Department of Defense has moved past the initial concept and study phases and is now investing in the detailed design and engineering necessary to define the system's architecture and capabilities. Success in this phase will likely pave the way for subsequent contract awards for system development and demonstration (SDD), followed by low-rate initial production (LRIP) and full-rate production. Conversely, significant challenges or unfavorable outcomes in this phase could lead to program delays, re-evaluation of requirements, or even potential restructuring of the program.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 4807 STONECROFT BLVD, CHANTILLY, VA, 20151
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: $24,750,000
Exercised Options: $24,750,000
Current Obligation: $24,750,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS23F0058K
IDV Type: FSS
Timeline
Start Date: 2015-08-07
Current End Date: 2016-07-06
Potential End Date: 2016-07-06 00:00:00
Last Modified: 2016-05-05
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