DoD's $14.3M Northrop Grumman Contract for R&D: A Deep Dive into Value and Competition
Contract Overview
Contract Amount: $14,310,490 ($14.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2006-05-01
End Date: 2008-06-30
Contract Duration: 791 days
Daily Burn Rate: $18.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: REDONDO BEACH, LOS ANGELES County, CALIFORNIA, 90278
Plain-Language Summary
Department of Defense obligated $14.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: Key points: 1. The contract awarded to Northrop Grumman for $14.3 million focuses on Research and Development in Physical, Engineering, and Life Sciences. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The duration of 791 days indicates a significant R&D effort. 5. The contract was awarded by the Defense Contract Management Agency, part of the Department of Defense.
Value Assessment
Rating: fair
The $14.3 million award for a 791-day R&D project appears within a reasonable range for complex scientific endeavors. However, without specific deliverables or benchmarks, a precise value assessment is difficult. The Cost Plus Fixed Fee structure introduces potential for costs to exceed initial estimates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, as it allows multiple bidders to contend for the contract. This method generally leads to more competitive pricing than sole-source or limited competition scenarios.
Taxpayer Impact: Taxpayer funds are utilized for this R&D contract. While competition aims for efficiency, the Cost Plus Fixed Fee structure necessitates careful oversight to ensure costs remain justified by the research outcomes.
Public Impact
This contract supports advancements in physical, engineering, and life sciences, potentially leading to new technologies or capabilities. The significant investment highlights the Department of Defense's commitment to innovation and maintaining a technological edge. Taxpayers can expect potential long-term benefits from the research outcomes, though immediate returns are not guaranteed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Long contract duration may increase risk of scope creep or changing requirements.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Full and open competition utilized.
- Contract supports critical R&D for national security.
- Experienced contractor (Northrop Grumman) selected.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement and national security, with benchmarks varying widely based on the specific research domain and project scope.
Small Business Impact
The data indicates this contract was awarded to Northrop Grumman Systems Corporation and does not specify any subcontracting goals for small businesses. Further investigation would be needed to determine if small businesses are involved in the supply chain or as subcontractors.
Oversight & Accountability
The Defense Contract Management Agency is responsible for overseeing this contract. Robust oversight is crucial, especially with a Cost Plus Fixed Fee structure, to ensure adherence to scope, manage costs, and verify the quality of research outcomes.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost overrun potential due to CPFF structure.
- Uncertainty of R&D outcomes.
- Potential for scope creep over the 791-day duration.
- Lack of specific performance metrics in provided data.
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 $14.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. See the official description on USAspending.
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 $14.3 million.
What is the period of performance?
Start: 2006-05-01. End: 2008-06-30.
What specific research objectives and expected outcomes are associated with this $14.3 million R&D contract?
The contract details are limited, but it falls under NAICS code 541710 for Research and Development in the Physical, Engineering, and Life Sciences. Specific objectives would typically involve advancing scientific knowledge or developing new technologies within these broad fields. Expected outcomes could range from prototypes and feasibility studies to foundational research reports, depending on the project's defined scope and goals.
How effectively does the Cost Plus Fixed Fee structure balance contractor incentives with taxpayer risk in this R&D context?
The Cost Plus Fixed Fee (CPFF) structure aims to provide a guaranteed profit margin for the contractor while allowing for cost flexibility. In R&D, where outcomes can be uncertain, CPFF can encourage innovation by reducing contractor risk. However, it shifts cost risk to the government, potentially leading to higher final costs if not rigorously managed and audited. Effective oversight is paramount to mitigate this risk.
What are the potential long-term strategic advantages or technological advancements expected from this contract for the Department of Defense?
This contract likely aims to foster innovation in critical areas of physical, engineering, or life sciences that have strategic defense implications. Potential advancements could include next-generation materials, improved sensor technologies, advanced computing capabilities, or breakthroughs in biological sciences relevant to defense. The long-term advantage lies in maintaining a technological edge over adversaries and enhancing national security through cutting-edge research.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1 SPACE PARK BLVD, REDONDO BEACH, CA, 90278
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2006-05-01
Current End Date: 2008-06-30
Potential End Date: 2008-06-30 00:00:00
Last Modified: 2023-09-29
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)