DoD's $27.8M R&D Contract with Northrop Grumman: Research & Development in Physical Sciences
Contract Overview
Contract Amount: $27,800,256 ($27.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-09-24
End Date: 2023-06-01
Contract Duration: 1,711 days
Daily Burn Rate: $16.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: PROTECTED FORWARD COMMUNICATIONS (PFC)
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92128
Plain-Language Summary
Department of Defense obligated $27.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: PROTECTED FORWARD COMMUNICATIONS (PFC) Key points: 1. Contract awarded to Northrop Grumman for R&D in physical sciences. 2. Full and open competition was utilized. 3. Potential risks include cost overruns in cost-plus contracts. 4. The IT sector is not directly applicable, but R&D is crucial for technological advancement.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to higher costs if not managed effectively. Benchmarking CPFF contracts in R&D is challenging due to unique project scopes.
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. However, the CPFF structure may not always yield the lowest price compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds are being used for research and development, which can yield long-term benefits but requires careful oversight to ensure value for money.
Public Impact
Investment in advanced research and development by the Department of Defense. Potential for technological advancements with broad applications. Supports a major defense contractor, impacting the aerospace and defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration (over 4 years) increases risk of scope creep or changing requirements.
- Research and Development contracts are inherently uncertain in outcomes.
Positive Signals
- Awarded under full and open competition, indicating a competitive process.
- Contract supports critical research for national security.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is vital for maintaining technological superiority but can be highly variable and difficult to benchmark.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business subcontracting in the provided data.
Oversight & Accountability
The contract is managed by the Department of the Air Force. Oversight is crucial for CPFF contracts to ensure costs are reasonable and the project stays on track.
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
- Cost overrun risk due to CPFF structure.
- Potential for scope creep over the contract's long duration.
- Uncertainty of R&D outcomes.
- Lack of transparency on specific deliverables and technological advancements.
- No explicit mention of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. PROTECTED FORWARD COMMUNICATIONS (PFC)
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 $27.8 million.
What is the period of performance?
Start: 2018-09-24. End: 2023-06-01.
What specific technological advancements are expected from this R&D contract, and how will they benefit national security?
The contract focuses on 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. Specific advancements are not detailed, but such R&D typically aims to enhance defense capabilities, improve existing systems, or develop novel technologies for military applications, ultimately bolstering national security through technological superiority.
What measures are in place to mitigate cost overruns given the Cost Plus Fixed Fee (CPFF) contract structure?
With a CPFF contract, the government pays the contractor's allowable costs plus a fixed fee representing profit. Mitigation strategies include robust cost monitoring, regular audits, clear performance metrics, and strong program management to ensure costs remain reasonable and the fixed fee is justified by the work performed.
How does the long duration of this contract (over 4 years) impact the potential for innovation and adaptability?
A long contract duration can allow for in-depth research and development, potentially leading to significant breakthroughs. However, it also increases the risk of requirements becoming outdated or technological landscapes shifting, necessitating flexibility and potentially contract modifications to ensure continued relevance and innovation.
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 › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: HR001118S0009
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
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: $27,800,256
Exercised Options: $27,800,256
Current Obligation: $27,800,256
Actual Outlays: $5,757,232
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-09-24
Current End Date: 2023-06-01
Potential End Date: 2023-06-01 00:00:00
Last Modified: 2023-03-30
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