DoD Awards Northrop Grumman $58.5M for Launch Services and Mission Assurance Support
Contract Overview
Contract Amount: $58,505,538 ($58.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-05-31
End Date: 2025-07-07
Contract Duration: 2,594 days
Daily Burn Rate: $22.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::CT::IGF L174 LAUNCH SERVICE AND MISSION ASSURANCE SPT
Place of Performance
Location: CHANDLER, MARICOPA County, ARIZONA, 85286
State: Arizona Government Spending
Plain-Language Summary
Department of Defense obligated $58.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::CT::IGF L174 LAUNCH SERVICE AND MISSION ASSURANCE SPT Key points: 1. Significant contract value for specialized aerospace services. 2. Northrop Grumman is a major defense contractor, indicating established capabilities. 3. Potential risks include reliance on a single provider for critical launch support. 4. Spending falls within the broad category of aerospace and defense IT/support.
Value Assessment
Rating: good
The contract value of $58.5 million over approximately 7 years appears reasonable for specialized launch services and mission assurance. Benchmarking against similar complex aerospace support contracts would provide a more precise assessment.
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. This method is generally expected to yield fair market prices.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for service providers.
Public Impact
Ensures critical launch capabilities for national security assets. Supports advanced aerospace technology development and deployment. Contributes to the operational readiness of Air Force space programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to price escalation.
- Dependence on a single contractor for critical mission assurance.
Positive Signals
- Awarded through full and open competition.
- Supports vital national security space missions.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically supporting launch services and mission assurance. Spending benchmarks for similar complex government contracts in this niche area are typically high due to specialized requirements and R&D.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. Large prime contractors like Northrop Grumman typically manage complex contracts, with subcontracting opportunities for smaller firms potentially existing within the supply chain.
Oversight & Accountability
Oversight will likely be managed by the Department of the Air Force, focusing on performance metrics, delivery schedules, and adherence to mission assurance protocols. Contract modifications and performance reviews are key accountability mechanisms.
Related Government Programs
- Nonscheduled Chartered Freight Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long-term contract dependency.
- Potential for cost overruns if not managed tightly.
- Reliance on a single, critical supplier.
- Complexity of mission assurance requirements.
Tags
nonscheduled-chartered-freight-air-trans, department-of-defense, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::CT::IGF L174 LAUNCH SERVICE AND MISSION ASSURANCE SPT
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 $58.5 million.
What is the period of performance?
Start: 2018-05-31. End: 2025-07-07.
What is the specific breakdown of costs for launch services versus mission assurance support?
The provided data does not detail the cost allocation between launch services and mission assurance support. A more granular breakdown would be necessary to assess the value proposition of each component independently and identify potential areas for cost optimization or efficiency gains.
What are the key performance indicators (KPIs) for mission assurance in this contract?
Key performance indicators for mission assurance typically include metrics related to launch success rates, system reliability, risk mitigation effectiveness, and adherence to stringent safety and quality standards. Specific KPIs would be defined in the contract's statement of work and monitored by the contracting officer's representative.
How does the pricing structure compare to historical contracts for similar services?
Without access to historical pricing data for comparable launch services and mission assurance contracts, a direct comparison is not possible. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a favorable pricing mechanism for the government if well-negotiated.
Industry Classification
NAICS: Transportation and Warehousing › Nonscheduled Air Transportation › Nonscheduled Chartered Freight Air Transportation
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1575 S PRICE RD, CHANDLER, AZ, 85286
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: $58,505,538
Exercised Options: $58,505,538
Current Obligation: $58,505,538
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $59,297
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA881813D0001
IDV Type: IDC
Timeline
Start Date: 2018-05-31
Current End Date: 2025-07-07
Potential End Date: 2025-07-07 00:00:00
Last Modified: 2025-02-10
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