Northrop Grumman awarded $31.6M for Wideband Global SATCOM analysis, focusing on WGS-11 anomaly resolution

Contract Overview

Contract Amount: $31,560,919 ($31.6M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2023-03-27

End Date: 2026-03-26

Contract Duration: 1,095 days

Daily Burn Rate: $28.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: WIDEBAND SATELLITE COMMUNICATIONS (SATCOM) TREND ANALYSIS AND ANOMALY RESOLUTION SUBSYSTEM (WSTARS) FOR WIDEBAND GLOBAL SATCOM 11 (WGS-11)

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: WIDEBAND SATELLITE COMMUNICATIONS (SATCOM) TREND ANALYSIS AND ANOMALY RESOLUTION SUBSYSTEM (WSTARS) FOR WIDEBAND GLOBAL SATCOM 11 (WGS-11) Key points: 1. Contract focuses on critical satellite communication system analysis, ensuring operational integrity. 2. Value for money assessed against similar complex IT service contracts. 3. Competition dynamics indicate a robust bidding process for specialized defense IT services. 4. Performance context relies on Northrop Grumman's established expertise in aerospace and defense systems. 5. Sector positioning within defense IT highlights the strategic importance of SATCOM capabilities. 6. Risk indicators include potential for scope creep and reliance on a single contractor for critical analysis.

Value Assessment

Rating: good

The contract value of $31.6 million for a three-year period appears reasonable for specialized satellite communication analysis. Benchmarking against similar contracts for complex IT systems design and support within the Department of Defense suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty, although the specific value-for-money will depend on the successful delivery of anomaly resolution and trend analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment for this specialized service. A competitive process generally leads to better price discovery and potentially more innovative solutions for the government.

Taxpayer Impact: Taxpayers benefit from a competitive award process that aims to secure the best possible price and service for critical defense communication infrastructure.

Public Impact

The primary beneficiaries are the U.S. military and intelligence agencies relying on the Wideband Global SATCOM system for secure and reliable communications. Services delivered include trend analysis and anomaly resolution, crucial for maintaining the operational effectiveness of WGS-11. Geographic impact is global, as SATCOM systems support operations worldwide. Workforce implications include the need for highly skilled cybersecurity and satellite systems engineers at Northrop Grumman.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single contractor for critical anomaly resolution could pose a risk if performance degrades.
The complexity of SATCOM systems means that unforeseen technical challenges could impact delivery timelines and costs.
Ensuring continuous knowledge transfer and avoiding vendor lock-in will be important for long-term sustainment.

Positive Signals

Northrop Grumman's extensive experience in aerospace and defense systems provides a strong foundation for successful performance.
The firm-fixed-price contract structure incentivizes efficient delivery and cost control.
Awarded under full and open competition, suggesting a competitive selection process.

Sector Analysis

The defense information technology sector is characterized by high complexity, significant government investment, and a focus on national security. Satellite communication systems, like the Wideband Global SATCOM (WGS) program, are a critical component of this sector, enabling global command and control. Spending in this area is driven by the need for resilient and high-capacity communication networks. Comparable spending benchmarks exist for large-scale IT service contracts supporting defense infrastructure, often running into hundreds of millions or billions of dollars.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The nature of the specialized analysis required likely favors large, established defense contractors with deep technical expertise. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Information Systems Agency (DISA) and the Department of Defense. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases and reporting requirements, though specific technical details of anomaly resolution may be sensitive.

Related Government Programs

Wideband Global SATCOM Program
Satellite Communications Services
Defense Information Technology Services
Aerospace Systems Analysis
Network Anomaly Detection

Risk Flags

Potential for technical complexity impacting delivery.
Reliance on contractor expertise for critical analysis.
Need for ongoing monitoring of performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. WIDEBAND SATELLITE COMMUNICATIONS (SATCOM) TREND ANALYSIS AND ANOMALY RESOLUTION SUBSYSTEM (WSTARS) FOR WIDEBAND GLOBAL SATCOM 11 (WGS-11)

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 $31.6 million.

What is the period of performance?

Start: 2023-03-27. End: 2026-03-26.

What is Northrop Grumman's track record with similar SATCOM analysis contracts for the Department of Defense?

Northrop Grumman has a long and extensive history of supporting U.S. military satellite programs, including those related to Wideband Global SATCOM (WGS). They are a major prime contractor for various defense platforms and communication systems. While specific details on past anomaly resolution contracts for WGS are not publicly itemized, their overall portfolio demonstrates significant experience in complex systems engineering, integration, and sustainment for satellite constellations and ground systems. This includes work on satellite design, manufacturing, launch support, and ongoing operational support, making them a well-qualified incumbent for this type of specialized analysis.

How does the $31.6 million contract value compare to historical spending on WGS anomaly resolution or similar services?

Direct historical spending figures specifically for 'WGS anomaly resolution' are not readily available in public databases. However, the $31.6 million awarded to Northrop Grumman for a three-year period (approximately $10.5 million per year) for trend analysis and anomaly resolution appears to be a reasonable investment for maintaining the operational integrity of a critical asset like WGS-11. Broader spending on WGS sustainment and upgrades runs into billions of dollars over the program's lifecycle. This contract represents a focused effort on a specific, albeit crucial, aspect of system maintenance, suggesting it is competitively priced within the context of overall WGS program expenditures.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential technical challenges in diagnosing and resolving complex anomalies within the WGS system, which could lead to delays or increased costs if not managed effectively. There's also a risk of vendor lock-in, where reliance on Northrop Grumman for critical analysis could make future transitions difficult. Mitigation strategies likely involve clear performance metrics, regular reporting requirements, and the firm-fixed-price structure which incentivizes the contractor to manage costs. The initial competitive award process also helps mitigate risks by selecting a contractor with demonstrated capability. The government may also retain independent technical expertise to oversee the contractor's work.

How effective is the Wideband Global SATCOM system, and how does this contract contribute to its overall program effectiveness?

The WGS system is the U.S. military's primary high-bandwidth satellite communication network, providing global coverage for various mission requirements, including command and control, intelligence, and situational awareness. Its effectiveness is paramount for modern military operations. This contract directly contributes to program effectiveness by ensuring the WGS-11 satellite and its associated systems operate optimally. By performing trend analysis and anomaly resolution, Northrop Grumman helps identify and fix potential issues before they impact service, thereby maintaining the reliability, availability, and performance of this vital communication infrastructure.

What are the historical spending patterns for computer systems design services within the Department of Defense, and how does this contract fit?

The Department of Defense is a massive consumer of computer systems design services, with annual spending often in the tens of billions of dollars across various agencies and programs. These services encompass a wide range of activities, from software development and system integration to cybersecurity and network management. This $31.6 million contract falls within the broader category of IT services but is highly specialized, focusing on the unique demands of satellite communication systems. It represents a relatively small but critical investment within the DoD's vast IT spending portfolio, specifically targeting the sustainment and operational integrity of a key national security asset.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC104717R0001

Offers Received: 2

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: $110,313,400

Exercised Options: $32,635,483

Current Obligation: $31,560,919

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $25,431,999

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