DoD Awards Northrop Grumman $38.1M for WGS-11 SATCOM Sensor Support

Contract Overview

Contract Amount: $38,113,267 ($38.1M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2022-06-06

End Date: 2026-06-05

Contract Duration: 1,460 days

Daily Burn Rate: $26.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WIDEBAND REMOTE MONITORING SENSOR (WRMS) FOR WIDEBAND GLOBAL SATELLITE COMMUNICATIONS (SATCOM) 11 (WGS-11) SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: WIDEBAND REMOTE MONITORING SENSOR (WRMS) FOR WIDEBAND GLOBAL SATELLITE COMMUNICATIONS (SATCOM) 11 (WGS-11) SUPPORT Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for Wideband Remote Monitoring Sensor (WRMS). 2. The contract supports the Wideband Global Satellite Communications (WGS-11) program. 3. This is a delivery order under an existing contract, indicating a continuation of services. 4. The NAICS code 541512 suggests Computer Systems Design Services. 5. The contract is for a duration of 1460 days.

Value Assessment

Rating: good

The contract value of $38.1M for a 4-year period appears reasonable for specialized satellite communication support services. Benchmarking against similar complex system integration contracts would provide further validation.

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: Taxpayer funds are being used for critical defense communication infrastructure, ensuring operational readiness and national security.

Public Impact

Ensures continued operation and monitoring of vital satellite communication systems. Supports national defense capabilities by maintaining secure and reliable SATCOM. Contributes to the technological advancement and maintenance of space-based communication assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

  • Full and open competition
  • Firm fixed price contract type
  • Supports critical national security infrastructure

Sector Analysis

This contract falls within the Information Technology sector, specifically related to defense communication systems. Spending in this area is crucial for maintaining technological superiority and operational effectiveness in national defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor is a large corporation. There is no information on small business subcontracting participation.

Oversight & Accountability

The contract is managed by the Defense Information Systems Agency (DISA), which is responsible for providing IT services and support to the DoD. Oversight is likely integrated into DISA's existing program management structures.

Related Government Programs

  • Computer Systems Design Services
  • Department of Defense Contracting
  • Defense Information Systems Agency Programs

Risk Flags

  • Contract duration is substantial (4 years), requiring ongoing monitoring.
  • Reliance on a single large contractor for critical system support.
  • Potential for technological obsolescence in a rapidly evolving field.

Tags

computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. WIDEBAND REMOTE MONITORING SENSOR (WRMS) FOR WIDEBAND GLOBAL SATELLITE COMMUNICATIONS (SATCOM) 11 (WGS-11) SUPPORT

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 Information Systems Agency).

What is the total obligated amount?

The obligated amount is $38.1 million.

What is the period of performance?

Start: 2022-06-06. End: 2026-06-05.

What is the specific technical function of the Wideband Remote Monitoring Sensor (WRMS) and its criticality to WGS-11 operations?

The WRMS is crucial for real-time monitoring and diagnostics of the Wideband Global Satellite Communications (WGS-11) system. Its criticality lies in ensuring the continuous operational status, performance, and security of a key asset for global military communications, enabling rapid detection and resolution of potential issues to maintain mission-critical connectivity.

How does the firm fixed price (FFP) structure mitigate cost overrun risks for this complex IT service contract?

The firm fixed price structure shifts the majority of cost overrun risk to the contractor, Northrop Grumman. This incentivizes efficient performance and cost management, as the government's liability is capped at the agreed-upon price. However, the complexity of IT systems means potential scope creep or unforeseen technical challenges could still impact contractor profitability.

What is the long-term strategy for maintaining and upgrading the WRMS technology given the rapid evolution of SATCOM capabilities?

The long-term strategy likely involves periodic technical reviews and potential contract modifications or new procurements to incorporate technological advancements. The current contract's duration (4 years) suggests a focus on immediate operational needs, with future upgrades or replacements to be addressed through subsequent acquisition planning to align with evolving SATCOM technologies and DoD requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC104717R0001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,508,183

Exercised Options: $44,486,831

Current Obligation: $38,113,267

Subaward Activity

Number of Subawards: 62

Total Subaward Amount: $99,560,525

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC104718D2012

IDV Type: IDC

Timeline

Start Date: 2022-06-06

Current End Date: 2026-06-05

Potential End Date: 2026-06-05 00:00:00

Last Modified: 2025-09-26

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