Northrop Grumman awarded $135.8M for Green Wave Mission Task Order by the Air Force

Contract Overview

Contract Amount: $135,861,208 ($135.9M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2023-03-01

End Date: 2026-09-30

Contract Duration: 1,309 days

Daily Burn Rate: $103.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: GREEN WAVE MISSION TASK ORDER

Place of Performance

Location: CHANDLER, MARICOPA County, ARIZONA, 85286

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $135.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: GREEN WAVE MISSION TASK ORDER Key points: 1. Contract awarded under a cost-plus-incentive fee structure, indicating potential for shared cost savings and performance bonuses. 2. The task order is part of a larger contract vehicle, suggesting ongoing program support and potential for future task orders. 3. Awarded to a single contractor, Northrop Grumman Systems Corporation, for guided missile and space vehicle manufacturing. 4. The contract duration of approximately 3.5 years (1309 days) suggests a significant, medium-term project. 5. The contract is not set aside for small businesses, implying a focus on large prime contractors with specialized capabilities. 6. Geographic location of performance is Arizona, a state with a notable aerospace and defense industry presence.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without knowing the scope of the underlying contract vehicle and the specific services rendered. The Cost Plus Incentive Fee (CPIF) structure means the final cost is variable and depends on performance. However, the dollar amount is substantial, suggesting a significant undertaking. Further analysis would require comparing the unit costs or labor rates to similar contracts for guided missile and space vehicle manufacturing, which are not readily available in this dataset.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to yield fair pricing and good value for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition provides taxpayers with assurance that the government sought the best possible price and technical solution, maximizing the value of their investment.

Public Impact

The primary beneficiaries are likely the Department of Defense and the Air Force, receiving critical components or services for guided missile and space vehicle programs. The services delivered are related to guided missile and space vehicle manufacturing, crucial for national defense and space exploration initiatives. The geographic impact is concentrated in Arizona, potentially supporting local jobs and the regional aerospace and defense ecosystem. Workforce implications may include skilled labor in engineering, manufacturing, and program management within Northrop Grumman and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus incentive fee contracts can lead to cost overruns if not managed diligently, as the government shares in the costs.
Reliance on a single large contractor for critical components may pose supply chain risks if not adequately mitigated.
Lack of specific performance metrics in the provided data makes it difficult to assess the 'incentive' aspect of the fee structure.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should drive value.
The task order is part of a larger contract, implying a stable, long-term relationship and potential for streamlined future procurements.
Northrop Grumman is a major defense contractor with extensive experience in aerospace and defense, suggesting a high likelihood of successful execution.

Sector Analysis

The guided missile and space vehicle manufacturing sector is a highly specialized and critical segment of the aerospace and defense industry. This contract falls within a market characterized by high barriers to entry, significant R&D investment, and stringent government oversight. Spending in this sector is driven by national security requirements and technological advancements. Comparable spending benchmarks would typically involve analyzing the total budget allocated by the DoD for missile defense, space launch capabilities, and related technologies.

Small Business Impact

This contract was not set aside for small businesses, and the 'sb' field is false. This indicates that the primary award went to a large prime contractor, Northrop Grumman. While there are no direct subcontracting requirements specified here, large defense contracts often involve significant subcontracting opportunities for specialized small businesses. However, the absence of a small business set-aside suggests that the primary focus was on the prime contractor's capabilities rather than direct small business participation in the initial award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. As a Cost Plus Incentive Fee contract, performance and cost monitoring would be particularly rigorous to ensure the incentive goals are met and costs are controlled. Transparency is generally maintained through contract reporting mechanisms, though specific details of task order execution are often considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Missile Defense Programs
Space Launch Vehicles
Advanced Weapons Systems
Aerospace Manufacturing Contracts
Department of Defense Procurement

Risk Flags

Cost-Plus Incentive Fee contract type requires careful monitoring of cost and performance targets.
Award to a single large prime contractor may limit future competition or innovation.
Specific mission details ('Green Wave Mission') are not publicly disclosed, limiting full transparency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $135.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. GREEN WAVE MISSION TASK ORDER

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 $135.9 million.

What is the period of performance?

Start: 2023-03-01. End: 2026-09-30.

What is the specific nature of the 'Green Wave Mission' and how does this task order contribute to its objectives?

The 'Green Wave Mission Task Order' likely refers to a specific project or program within the Department of the Air Force focused on developing, manufacturing, or supporting guided missiles and space vehicles. Without access to classified or internal program details, the exact objectives of the 'Green Wave Mission' cannot be precisely defined. However, given the contractor (Northrop Grumman) and the product service code (Guided Missile and Space Vehicle Manufacturing), it is reasonable to infer that this task order supports critical national defense or space capabilities. The $135.8 million award suggests a significant investment in this mission, potentially involving advanced technology development, production of new systems, or sustainment of existing ones. Further insight would require declassifying program-specific documentation or official Air Force program descriptions.

How does the Cost Plus Incentive Fee (CPIF) structure typically work for a contract of this nature, and what are the potential risks and benefits for the government?

A Cost Plus Incentive Fee (CPIF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs and also receives a fee that is adjusted based on whether the final cost is below or above a pre-negotiated target cost. For the government, the primary benefit is the potential for cost savings if the contractor performs efficiently and meets or exceeds targets. It also incentivizes the contractor to control costs and improve performance. The risk for the government lies in the potential for cost overruns if the target cost is set too high or if unforeseen issues arise that significantly increase costs, as the government still bears the majority of the cost risk. Effective oversight and realistic target setting are crucial for CPIF contracts to achieve their intended value.

What is Northrop Grumman's track record in delivering guided missile and space vehicle manufacturing services to the Department of Defense?

Northrop Grumman Systems Corporation is a major defense contractor with a long and extensive history of delivering complex systems, including guided missiles and space vehicles, to the Department of Defense and other government agencies. They are a key player in numerous high-profile programs, such as the B-21 bomber, James Webb Space Telescope, and various missile defense systems. Their track record generally indicates a strong capability in advanced manufacturing, systems integration, and program management for large-scale, technologically sophisticated projects. While specific performance on every contract can vary, their overall standing as a prime contractor in this domain suggests a high level of expertise and reliability, making them a frequent choice for critical defense procurements.

How does the $135.8 million award compare to historical spending on similar guided missile and space vehicle manufacturing contracts by the Air Force?

The $135.8 million award for the 'Green Wave Mission Task Order' represents a substantial investment. To compare it to historical spending, one would need to analyze the average value and frequency of similar task orders or contracts awarded by the Air Force for guided missile and space vehicle manufacturing over the past several years. Large, complex systems in this category often involve multi-year contracts with values ranging from tens of millions to billions of dollars. A $135.8 million task order, while significant, is likely within the typical range for a major component or system development/production phase within a larger program. Without access to a comprehensive database of historical contract awards filtered by specific product service codes and agencies, a precise historical benchmark is difficult to establish, but it indicates a significant, mid-to-large scale procurement.

What are the potential risks associated with relying on a single contractor, Northrop Grumman, for this specific task order?

Relying on a single contractor, even a large and experienced one like Northrop Grumman, for a critical task order can introduce several risks. These include potential supply chain vulnerabilities if Northrop Grumman faces production issues or relies on sole-source suppliers themselves. There's also the risk of reduced innovation or responsiveness over time due to a lack of direct competition for subsequent phases or related work. Furthermore, if the contractor encounters significant financial or operational difficulties, it could jeopardize the timely delivery of essential capabilities. The government attempts to mitigate these risks through robust contract oversight, performance incentives, and contingency planning, but the inherent risk of single-source reliance remains a consideration.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 1575 SOUTH 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: $142,672,353

Exercised Options: $135,861,208

Current Obligation: $135,861,208

Actual Outlays: $26,945,155

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA881819D0002

IDV Type: IDC

Timeline