DoD awards $148.8M contract for Missile and Space Systems to Northrop Grumman, highlighting advanced tech development
Contract Overview
Contract Amount: $148,840,251 ($148.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2004-04-16
End Date: 2007-01-24
Contract Duration: 1,013 days
Daily Burn Rate: $146.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200409!000011!5700!CZ30 !SMC/MR !FA882004C0002 !A!N! !N! ! !20040416!20060430!008324949!004179453!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!GARY HAWKINS !REDONDO BEACH !CA!90278!60018!037!06!REDONDO BEACH !LOS ANGELES !CALIFORNIA!+000030000000!N!N!000220000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !358 !SBR !927110!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!U!1!002!B! !Z!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: REDONDO BEACH, LOS ANGELES County, CALIFORNIA, 90278
Plain-Language Summary
Department of Defense obligated $148.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200409!000011!5700!CZ30 !SMC/MR !FA882004C0002 !A!N! !N! ! !20040416!20060430!008324949!004179453!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!GARY HAWKINS !REDONDO BEACH !CA!90278!60018!037!06!REDONDO BEACH !LOS … Key points: 1. Contract awarded for advanced missile and space systems technology development. 2. Northrop Grumman Systems Corporation is the contractor. 3. Significant funding allocated for research, development, test, and evaluation (RDTE). 4. Contract duration spans over 1000 days, indicating a substantial project. 5. Focus on advanced technology development within the space and missile sector.
Value Assessment
Rating: good
The contract value of $148.8 million for advanced technology development appears reasonable given the scope and duration. Benchmarking against similar RDTE contracts for complex systems is necessary for a definitive 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 pricing and identify the best value solution.
Taxpayer Impact: Competition in this award is positive for taxpayers, as it aims to secure the best possible price and technological solution for advanced defense systems.
Public Impact
Advancement of critical missile and space technologies for national security. Potential for technological breakthroughs in space systems and defense capabilities. Supports high-tech jobs and innovation within the aerospace and defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term R&D projects.
- Dependence on a single contractor for critical technology development.
- Scope creep in advanced technology projects can be a risk.
Positive Signals
- Awarded through full and open competition.
- Focus on advanced technology development.
- Contractor has a strong track record in the aerospace sector.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on missile and space systems. Spending in this area is critical for national security and often involves significant R&D investments.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further investigation would be needed to determine if subcontracting opportunities were offered or utilized.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency, indicating established oversight mechanisms. However, the long duration of R&D contracts necessitates continuous monitoring for performance and cost control.
Related Government Programs
- Space Research and Technology
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration increases exposure to changing requirements and economic conditions.
- Cost Plus Fixed Fee contract type carries inherent cost overrun risks.
- Potential for technological obsolescence if development timelines are extended.
- Reliance on a single large contractor for critical R&D.
Tags
space-research-and-technology, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $148.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200409!000011!5700!CZ30 !SMC/MR !FA882004C0002 !A!N! !N! ! !20040416!20060430!008324949!004179453!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!GARY HAWKINS !REDONDO BEACH !CA!90278!60018!037!06!REDONDO BEACH !LOS ANGELES !CALIFORNIA!+000030000000!N!N!000220000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !358 !SBR !927110!E! !3! ! ! ! ! !999
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 $148.8 million.
What is the period of performance?
Start: 2004-04-16. End: 2007-01-24.
What specific technological advancements are expected from this contract, and how will they enhance current defense capabilities?
This contract aims to advance technologies in missile and space systems, likely focusing on areas such as propulsion, guidance, materials, or sensor technology. The expected enhancements could include improved accuracy, extended range, increased survivability, or novel operational capabilities for defense platforms, ultimately bolstering national security.
What are the primary risks associated with the 'Cost Plus Fixed Fee' contract type for this advanced technology development?
The primary risks with a Cost Plus Fixed Fee (CPFF) contract for R&D include potential for cost overruns if the contractor's actual costs exceed estimates, as the government bears the majority of the cost risk. The fixed fee provides less incentive for the contractor to control costs compared to fixed-price contracts, potentially leading to less efficient resource utilization.
How will the effectiveness of the developed technologies be measured and validated to ensure they meet the Department of Defense's requirements?
Effectiveness will be measured through rigorous testing and evaluation phases outlined in the contract. This typically involves performance benchmarks, operational assessments, and validation against specific mission requirements. Milestones and deliverables will be reviewed by the contracting agency to ensure alignment with stated objectives and technological efficacy.
Industry Classification
NAICS: Public Administration › Space Research and Technology › Space Research and Technology
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1 SPACE PARK BLVD, REDONDO BEACH, CA, 90278
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2004-04-16
Current End Date: 2007-01-24
Potential End Date: 2007-01-24 00:00:00
Last Modified: 2023-09-29
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