DoD Awards Northrop Grumman $15M for AIRSS PRDA NGST Engineering Services

Contract Overview

Contract Amount: $15,000,000 ($15.0M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2006-12-04

End Date: 2008-09-30

Contract Duration: 666 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AIRSS PRDA NGST

Place of Performance

Location: REDONDO BEACH, LOS ANGELES County, CALIFORNIA, 90278

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: AIRSS PRDA NGST Key points: 1. Contract awarded to a single, large defense contractor. 2. Engineering services sector is competitive but often dominated by large players. 3. Risk of cost overruns or schedule delays in complex engineering projects. 4. Significant taxpayer investment in advanced defense systems.

Value Assessment

Rating: fair

The contract value of $15 million for engineering services over 666 days suggests a moderate per-diem rate. Without specific deliverables or comparable contracts, a precise valuation is difficult, but it appears within a typical range for specialized defense engineering.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and aims to secure the best value for the government.

Taxpayer Impact: The $15 million awarded represents taxpayer funds allocated to a specific defense program. The value derived from these engineering services will determine the ultimate return on this investment.

Public Impact

Supports advanced defense technology development. Potential impact on national security capabilities. Creates high-skilled jobs in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration (666 days) may be subject to change.
  • Specific performance metrics not detailed.
  • Reliance on a single large contractor.

Positive Signals

  • Awarded through full and open competition.
  • Firm Fixed Price contract type limits cost risk.
  • Supports critical Department of Defense mission.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense applications. Spending in this area is driven by technological advancement and national security needs, often involving significant R&D investment.

Small Business Impact

The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses for this specific award.

Oversight & Accountability

The Department of the Air Force is responsible for oversight. The firm fixed price contract type provides some cost control, but ongoing monitoring of performance and adherence to scope will be crucial.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Potential for scope creep in complex engineering projects.
  • Dependence on a single large contractor may limit future flexibility.
  • Long-term sustainment and upgrade costs are not detailed.
  • Integration risks with other defense systems.

Tags

engineering-services, department-of-defense, ca, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. AIRSS PRDA NGST

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 $15.0 million.

What is the period of performance?

Start: 2006-12-04. End: 2008-09-30.

What specific engineering challenges does AIRSS PRDA NGST aim to address, and how does this contract contribute to solving them?

The AIRSS PRDA NGST likely pertains to advanced integrated sensor systems or related technologies for next-generation systems. This contract's engineering services would focus on design, development, integration, or testing of these complex components, aiming to overcome technical hurdles in areas like sensor fusion, data processing, or platform integration to enhance warfighter capabilities.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include technical complexity leading to performance issues, potential schedule slippage, and integration challenges with existing or future systems. Mitigation strategies likely involve rigorous testing, phased development, clear performance metrics, and strong program management by the Department of the Air Force, alongside the firm fixed price structure to cap cost overruns.

How effectively will the engineering services provided under this contract translate into tangible improvements in defense capabilities?

The effectiveness hinges on the successful execution of the engineering tasks and the actual performance of the developed technologies. If Northrop Grumman delivers robust, reliable, and integrated solutions that meet or exceed the specified requirements, it will significantly enhance the Air Force's operational capabilities, contributing to mission success and strategic advantage.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Titan II Inc. (UEI: 016435559)

Address: 1 SPACE PARK BLVD, REDONDO BEACH, CA, 36

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $87,399,228

Exercised Options: $53,799,743

Current Obligation: $15,000,000

Contract Characteristics

Cost or Pricing Data: YES

Timeline

Start Date: 2006-12-04

Current End Date: 2008-09-30

Potential End Date: 2008-09-30 00:00:00

Last Modified: 2008-06-10

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