Air Force awards Northrop Grumman $17M contract for agile strike mission planning, with 2 years remaining
Contract Overview
Contract Amount: $16,979,565 ($17.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-01-08
End Date: 2025-01-07
Contract Duration: 1,460 days
Daily Burn Rate: $11.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: MISSION PLANNING STRIKE AGILE EFFORTS.
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $17.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MISSION PLANNING STRIKE AGILE EFFORTS. Key points: 1. Contract value appears reasonable given the specialized engineering services required for advanced mission planning. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration and delivery order structure indicate ongoing needs for agile efforts. 4. Performance context is tied to critical defense capabilities, requiring high reliability and technical expertise. 5. Positioned within the defense sector, this contract supports advanced aerospace and engineering services.
Value Assessment
Rating: good
The contract's total value of approximately $17 million over its period of performance is within a reasonable range for complex engineering services supporting advanced defense systems. Benchmarking against similar contracts for mission planning and agile development support is challenging without more specific service details, but the pricing appears competitive given the specialized nature of the work. The use of Time and Materials pricing, while requiring careful oversight, allows for flexibility in evolving agile development environments.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of a competitive process generally fosters price discovery and encourages contractors to offer their best value. The specific number of bids received is not provided, but the award method suggests a robust market engagement.
Taxpayer Impact: A full and open competition process is favorable for taxpayers as it increases the likelihood of obtaining services at a fair market price through competitive bidding.
Public Impact
The primary beneficiaries are the Department of the Air Force, receiving advanced mission planning capabilities. Services delivered include support for agile efforts in strike mission planning, enhancing operational readiness. The geographic impact is primarily within the defense sector's operational and development environments. Workforce implications include specialized engineering and technical roles required for advanced defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type requires diligent oversight to prevent cost overruns and ensure efficient labor utilization.
- The agile nature of the work may lead to scope creep if not managed effectively through clear requirements and change control processes.
- Dependence on a single contractor for critical mission planning capabilities could pose a risk if performance issues arise.
Positive Signals
- Awarded through full and open competition, suggesting a competitive market and potentially fair pricing.
- The contract supports critical defense mission planning, indicating alignment with strategic national security objectives.
- The duration of the contract allows for sustained development and integration of agile capabilities.
Sector Analysis
This contract falls within the Defense sector, specifically supporting advanced engineering and software development for military operations. The market for defense engineering services is substantial, driven by continuous technological advancement and evolving geopolitical landscapes. This contract likely represents a component of broader Air Force modernization efforts, aiming to enhance strike capabilities through agile methodologies. Comparable spending benchmarks would typically involve other contracts for mission planning systems, simulation, and advanced software development within the DoD.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the prime contractor, Northrop Grumman Systems Corporation, is a large aerospace and defense company. There is no explicit information on subcontracting plans for small businesses within this specific award. The impact on the small business ecosystem would depend on whether Northrop Grumman engages small businesses as subcontractors for specialized components or services, which is not detailed here.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures are inherent in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Air Force Mission Planning Systems
- Defense Software Development Contracts
- Agile Development Support Services
- Aerospace Engineering Services
- Strike Warfare Systems
Risk Flags
- Potential for cost overruns due to Time and Materials pricing structure.
- Risk of scope creep in agile development without stringent management.
- Dependence on contractor performance for critical mission planning capabilities.
Tags
defense, department-of-defense, department-of-the-air-force, northrop-grumman-systems-corporation, engineering-services, time-and-materials, full-and-open-competition, delivery-order, mission-planning, agile-efforts, virginia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. MISSION PLANNING STRIKE AGILE EFFORTS.
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 $17.0 million.
What is the period of performance?
Start: 2021-01-08. End: 2025-01-07.
What is Northrop Grumman's track record with similar Air Force mission planning contracts?
Northrop Grumman Systems Corporation has a significant history of supporting the Department of Defense, including the Air Force, with complex systems integration, software development, and mission planning capabilities. They are a major defense contractor involved in numerous large-scale programs across various branches of the military. While specific details on past mission planning contracts with the Air Force are not provided in this data snippet, their extensive experience in areas like command and control, intelligence, surveillance, and reconnaissance (ISR), and advanced aircraft systems suggests a strong capability to handle such requirements. Their performance on previous contracts would be a key factor in the Air Force's decision-making process for awarding new work, and would typically be assessed through past performance evaluations.
How does the $17 million contract value compare to industry benchmarks for agile mission planning support?
Benchmarking the $17 million contract value for agile mission planning support requires context regarding the scope, duration, and specific deliverables. Agile development contracts can vary widely in cost depending on the complexity of the software, the size of the development team, and the length of the engagement. For a contract spanning approximately four years (January 2021 to January 2025) with a total value of $17 million, this suggests an average annual spend of around $4.25 million. This figure appears reasonable for specialized engineering services supporting advanced defense systems, especially considering the need for highly skilled personnel and potentially cutting-edge technology integration. However, without detailed service descriptions and comparison data for similar agile mission planning efforts, a precise benchmark is difficult to establish.
What are the primary risks associated with a Time and Materials (T&M) contract for agile development?
Time and Materials (T&M) contracts, while offering flexibility for evolving requirements common in agile development, carry inherent risks for the government. The primary risk is cost overrun, as the government pays for the actual labor hours and material costs incurred by the contractor. Without strict oversight and well-defined ceilings, contractors may have less incentive to control costs or optimize efficiency. For agile development, this can be exacerbated if requirements are not clearly managed, leading to scope creep and extended development cycles. Ensuring robust monitoring of labor hours, rates, and material expenditures, along with clear task definitions and performance metrics, is crucial to mitigate these risks and ensure value for taxpayer money.
How effective is full and open competition in ensuring value for money in defense engineering services?
Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including defense engineering services. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best technical solutions at the most competitive prices. This process helps establish a fair market price and reduces the likelihood of overpayment. While the process itself can be resource-intensive for both the government and bidders, the potential for cost savings and access to a wider range of innovative solutions typically outweighs these costs. The effectiveness is further enhanced when the government clearly defines requirements and evaluation criteria.
What is the historical spending trend for mission planning and agile development support within the Department of the Air Force?
Historical spending trends for mission planning and agile development support within the Department of the Air Force (DAF) indicate a consistent and growing investment in these areas. As military operations become increasingly complex and reliant on advanced technology, the DAF has prioritized modernizing its mission planning systems and adopting agile methodologies for software development. This includes significant outlays for software-defined capabilities, artificial intelligence integration, and cybersecurity enhancements within planning tools. Spending in this category has likely seen an upward trend over the past decade, driven by the need to counter evolving threats and maintain technological superiority. Specific figures would require detailed analysis of historical contract databases, but the overall trajectory points to sustained and potentially increasing budgetary allocations for these critical functions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $55,480,375
Exercised Options: $34,409,325
Current Obligation: $16,979,565
Actual Outlays: $1,584
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $1,647,892
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU325
IDV Type: IDC
Timeline
Start Date: 2021-01-08
Current End Date: 2025-01-07
Potential End Date: 2025-01-07 00:00:00
Last Modified: 2025-04-02
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