Northrop Grumman awarded $117.7M for NGES AIRSS PRDA Contract by Department of Defense

Contract Overview

Contract Amount: $11,773,244 ($11.8M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2007-02-16

End Date: 2009-07-15

Contract Duration: 880 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NGES AIRSS PRDA CONTRACT

Place of Performance

Location: AZUSA, LOS ANGELES County, CALIFORNIA, 91702

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: NGES AIRSS PRDA CONTRACT Key points: 1. Contract value of $117.7 million indicates a significant investment in engineering services. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. A duration of 880 days points to a medium-term project with sustained effort. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. The contract was awarded by the Defense Contract Management Agency, a key oversight body. 6. Northrop Grumman Systems Corporation is the sole awardee, highlighting their specialized capabilities.

Value Assessment

Rating: fair

The contract value of $117.7 million for engineering services over approximately 2.4 years appears to be within a reasonable range for complex defense projects. Benchmarking against similar large-scale engineering services contracts awarded by the Department of Defense would provide a clearer picture of value for money. The firm-fixed-price structure suggests that the contractor bears the primary risk for cost overruns, which can be a positive indicator for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely considered. The presence of 7 bids suggests a competitive environment, which generally leads to better pricing and innovation for the government. The level of competition is a positive sign for price discovery and ensuring that the government receives a fair market price for the engineering services required.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely drove down costs and ensured the government secured the best possible value for its investment.

Public Impact

The primary beneficiaries are the Department of Defense, receiving critical engineering services for the NGES AIRSS PRDA. The contract supports the development and sustainment of advanced systems, enhancing national security capabilities. Services are likely concentrated in California, where the contractor is based, with potential ripple effects on the defense industrial base. The contract supports a skilled workforce in engineering and related technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for a significant project could pose risks if performance falters.
Ensuring continued innovation and cost-effectiveness throughout the contract lifecycle requires diligent oversight.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition with multiple bidders suggests a competitive pricing environment.
Award to a large, established defense contractor like Northrop Grumman implies experience and capability.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader aerospace and defense industry. The market for defense engineering services is substantial, driven by the continuous need for modernization and sustainment of military platforms and systems. Comparable spending benchmarks for large-scale defense engineering contracts often run into hundreds of millions of dollars, making this $117.7 million award significant but not extraordinary within its context.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary award went to a large prime contractor. Further analysis would be needed to determine if small businesses are involved in the subcontracting chain, which is common in large defense contracts.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract, ensuring compliance with terms and conditions. Oversight mechanisms would typically include performance monitoring, quality assurance, and financial reviews. Transparency is generally maintained through contract reporting requirements, though specific details of ongoing oversight are not publicly detailed.

Related Government Programs

NGES AIRSS Program
Department of Defense Engineering Services
Northrop Grumman Defense Contracts
Advanced Systems Development Contracts

Risk Flags

Potential for cost overruns if technical challenges arise.
Risk of schedule delays due to complexity or requirement changes.
Dependence on a single contractor for critical system development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. NGES AIRSS PRDA CONTRACT

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 $11.8 million.

What is the period of performance?

Start: 2007-02-16. End: 2009-07-15.

What is the historical spending trend for the NGES AIRSS PRDA Contract and similar programs?

The provided data reflects a single definitive contract award of $117.7 million to Northrop Grumman Systems Corporation for the NGES AIRSS PRDA Contract, with a start date of February 16, 2007, and an end date of July 15, 2009. This specific award represents a significant, one-time investment within that period. To understand historical trends, one would need to examine prior contracts related to the NGES AIRSS program or similar advanced radar/sensor development programs within the Department of Defense. Without access to historical contract databases or program budget documents, it is difficult to establish a spending trend. However, the nature of defense procurement often involves multi-year, multi-award contracts or a series of individual contracts for different phases of development and sustainment. The $117.7 million figure suggests a substantial commitment for the defined period, likely covering development, testing, or initial production phases.

How does the awarded amount compare to the estimated value or initial solicitation for this contract?

The provided data shows a definitive contract award of $117,732,440 to Northrop Grumman Systems Corporation. The data does not include information about the initial solicitation value, estimated cost, or any pre-negotiated ceiling. Therefore, a direct comparison between the awarded amount and the initial estimates or solicitation value cannot be made. In a full and open competition with 7 bids, the awarded amount typically reflects the negotiated price based on the proposals received and the government's evaluation criteria. If the awarded amount is significantly lower than any publicly stated estimate, it could indicate successful competition and negotiation. Conversely, if it aligns closely with or exceeds estimates, further scrutiny of the pricing and justification might be warranted.

What specific engineering services were rendered under this contract?

The contract is categorized under NAICS code 541330, which denotes Engineering Services. While the specific details of the 'NGES AIRSS PRDA CONTRACT' are not fully elaborated in the provided data, this code typically encompasses a wide range of activities. These can include research and development, design, analysis, testing, and integration of complex systems. Given the 'AIRSS' acronym, it is highly probable that the services relate to Advanced Integrated Sensor Systems or similar airborne intelligence, surveillance, and reconnaissance (ISR) platforms. This could involve the design of radar systems, sensor integration, software development for data processing, system testing, and potentially prototyping or initial production support for these advanced defense technologies.

What is Northrop Grumman's track record with similar Department of Defense contracts?

Northrop Grumman Systems Corporation is a major defense contractor with an extensive history of performing complex engineering and systems integration work for the Department of Defense (DoD). They have a well-established track record in areas such as aerospace, defense electronics, C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), and space systems. For instance, they are known for their work on aircraft like the B-2 Spirit bomber and the F-35 fighter jet, as well as various satellite and sensor programs. Their experience with large, high-value DoD contracts, including those involving advanced technology development and production, is substantial. This background suggests they possess the necessary technical expertise, program management capabilities, and security clearances to execute contracts like the NGES AIRSS PRDA.

Are there any identified risks or concerns associated with this specific contract award?

Based on the provided data, the primary risks associated with this contract are inherent to large, complex defense procurements. The firm-fixed-price nature, while beneficial for cost control, places the onus on the contractor to manage costs effectively; significant technical challenges or unforeseen issues could strain their ability to deliver within budget. The contract's duration (880 days) implies a medium-term project, during which technological advancements or changing requirements could necessitate contract modifications or scope adjustments. Furthermore, reliance on a single awardee, even a capable one like Northrop Grumman, carries a degree of performance risk. Diligent oversight by the Defense Contract Management Agency (DCMA) is crucial to monitor progress, ensure quality, and mitigate potential issues throughout the contract lifecycle.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 1100 W HOLLYVALE ST, AZUSA, CA, 91702

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,298,382

Exercised Options: $23,298,382

Current Obligation: $11,773,244

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline