DoD Awards Northrop Grumman $10.76M for Space Tech Integration, Test, and Operations

Contract Overview

Contract Amount: $10,760,738 ($10.8M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2025-02-12

End Date: 2028-06-30

Contract Duration: 1,234 days

Daily Burn Rate: $8.7K/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 (ROOSTER-5) INTEGRATION, TEST, AND OPERATIONS EFFORTS

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: RAPID ON ORBIT SPACE TECHNOLOGY EVALUATION RING (ROOSTER-5) INTEGRATION, TEST, AND OPERATIONS EFFORTS Key points: 1. Contract awarded to Northrop Grumman for critical space technology efforts. 2. Focus on integration, testing, and operations for space assets. 3. Long-term contract duration suggests significant program scope. 4. Potential for follow-on work in advanced space capabilities.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar space technology integration contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in a higher cost to the government compared to a competitive process.

Taxpayer Impact: The lack of competition raises concerns about the optimal use of taxpayer funds for this critical space technology effort.

Public Impact

Enhances national security through advanced space technology. Supports the Department of the Air Force's strategic space goals. Contributes to the growing space economy and technological innovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award limits competition and price discovery.
  • Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
  • Long contract duration may not reflect evolving technology needs.

Positive Signals

  • Supports critical national security space capabilities.
  • Leverages established contractor expertise in space technology.
  • Long-term commitment allows for sustained program development.

Sector Analysis

This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a high-growth area driven by national security and commercial interests. Spending benchmarks are difficult to establish due to the specialized nature of space technology.

Small Business Impact

The data indicates this is a large contract awarded to a major defense contractor, Northrop Grumman. There is no explicit mention of small business participation, suggesting limited direct involvement for SMBs in this specific award.

Oversight & Accountability

The contract is managed by the Department of the Air Force, a component of the DoD. Oversight will be crucial to ensure cost control and performance given the sole-source and cost-plus nature of the award.

Related Government Programs

  • Guided Missile and Space Vehicle Manufacturing
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Lack of competition may lead to inflated costs.
  • Cost Plus Fixed Fee contract increases risk of cost overruns.
  • Potential for vendor lock-in due to sole-source award.
  • Long contract duration may not keep pace with rapid technological change.
  • Limited transparency on specific performance metrics and deliverables.

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 $10.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. RAPID ON ORBIT SPACE TECHNOLOGY EVALUATION RING (ROOSTER-5) INTEGRATION, TEST, AND OPERATIONS EFFORTS

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 $10.8 million.

What is the period of performance?

Start: 2025-02-12. End: 2028-06-30.

What specific technological advancements or capabilities does the ROOSTER-5 program aim to achieve, and how do these align with current and future Air Force space requirements?

The ROOSTER-5 program focuses on the integration, testing, and operations of rapid on-orbit space technology. While specific advancements are not detailed, it likely aims to accelerate the deployment and validation of new space-based capabilities, enhancing the Air Force's ability to adapt to evolving threats and opportunities in the space domain. This aligns with the need for agile and responsive space systems.

Given the sole-source nature of this award, what mechanisms are in place to ensure Northrop Grumman is providing the most cost-effective solution for the government?

As a sole-source award with a Cost Plus Fixed Fee structure, robust government oversight is critical. Mechanisms should include detailed cost proposal analysis, regular performance reviews, and strict adherence to contract milestones. The government contracting officer must ensure that the fixed fee is reasonable and that all costs incurred are allowable, allocable, and reasonable according to federal acquisition regulations.

What is the anticipated impact of this contract on the broader landscape of space technology development and acquisition within the Department of Defense?

This contract signifies a commitment to rapidly advancing and operationalizing space technologies. It may signal a shift towards more agile acquisition strategies for space systems, potentially encouraging innovation and faster deployment cycles. The long-term nature suggests a strategic investment in maintaining a technological edge in space, influencing future R&D priorities and contractor engagement in the sector.

Industry Classification

NAICS: ManufacturingAerospace Product and Parts ManufacturingGuided Missile and Space Vehicle Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENTC – 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 DRIVE, 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: $71,126,488

Exercised Options: $71,126,488

Current Obligation: $10,760,738

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2025-02-12

Current End Date: 2028-06-30

Potential End Date: 2028-06-30 00:00:00

Last Modified: 2026-01-09

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