DoD Awards Northrop Grumman $76M for Space Tech Evaluation
Contract Overview
Contract Amount: $76,034,344 ($76.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-07-06
End Date: 2026-05-31
Contract Duration: 1,425 days
Daily Burn Rate: $53.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: RAPID ON-ORBIT SPACE TECHNOLOGY EVALUATION RING
Place of Performance
Location: STERLING, LOUDOUN County, VIRGINIA, 20166
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $76.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: RAPID ON-ORBIT SPACE TECHNOLOGY EVALUATION RING Key points: 1. Significant investment in advanced space technology evaluation. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Contract duration of 1425 days suggests long-term R&D focus. 4. Potential for technological advancements in guided missile and space vehicles.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking is difficult without more specific details on the 'technology evaluation' scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. This limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The lack of competition may result in higher costs than if multiple vendors had vied for the contract.
Public Impact
Enhances national security through advanced space capabilities. Supports innovation in the rapidly evolving space sector. Potential for spin-off technologies benefiting commercial space industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Limited transparency on specific deliverables
Positive Signals
- Focus on critical space technology
- Long-term strategic investment
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical area for defense spending. Benchmarks for similar R&D contracts vary widely based on scope and technology maturity.
Small Business Impact
The contract data indicates no specific set-aside for small businesses, and the prime contractor is a large corporation. This suggests limited direct opportunities for small businesses on this specific award.
Oversight & Accountability
Oversight will be crucial given the sole-source nature and CPFF structure to ensure funds are used efficiently and effectively towards stated objectives.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Cost-plus contract type carries inherent cost risk.
- Lack of detailed scope may obscure true value.
- Potential for cost overruns.
- Limited small business participation.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $76.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. RAPID ON-ORBIT SPACE TECHNOLOGY EVALUATION RING
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 $76.0 million.
What is the period of performance?
Start: 2022-07-06. End: 2026-05-31.
What specific technologies are being evaluated under this contract, and how do they align with current and future defense needs?
The contract focuses on 'RAPID ON-ORBIT SPACE TECHNOLOGY EVALUATION'. While the exact technologies are not detailed, the context of the Department of the Air Force and 'Guided Missile and Space Vehicle Manufacturing' suggests evaluations related to satellite systems, space-based sensors, communication technologies, or potentially counter-space capabilities. Alignment with defense needs would be assessed through the program's strategic objectives and the technologies' potential to enhance situational awareness, command and control, or force projection in the space domain.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For this contract, the specific rationale is not provided in the data. To ensure fair and reasonable pricing, the government would usually conduct a price analysis based on historical data, cost proposals, and market research, even in sole-source situations, though the absence of competition inherently limits negotiation leverage.
How will the effectiveness of the evaluated technologies be measured, and what are the key performance indicators for this contract?
The effectiveness of the evaluated technologies will likely be measured through a combination of on-orbit performance data, simulation results, and comparison against predefined technical requirements and objectives. Key performance indicators (KPIs) would typically include metrics related to system reliability, operational performance, data accuracy, integration capabilities, and the successful demonstration of intended functionalities. The Cost Plus Fixed Fee structure implies that the contractor is incentivized to meet these performance targets within the agreed-upon fee.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 45101 WARP DR, DULLES, VA, 20166
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $80,389,478
Exercised Options: $80,389,478
Current Obligation: $76,034,344
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $2,894,349
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-07-06
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2025-09-02
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