Northrop Grumman awarded $37.4M for NIH R&D, highlighting long-term investment in physical, engineering, and life sciences
Contract Overview
Contract Amount: $37,430,030 ($37.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2004-09-30
End Date: 2011-12-31
Contract Duration: 2,648 days
Daily Burn Rate: $14.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: BISC - PHASE II
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $37.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: BISC - PHASE II Key points: 1. Contract value represents a significant, multi-year commitment to research and development. 2. Full and open competition suggests a robust bidding process for this significant contract. 3. The contract's duration indicates a long-term project with potential for sustained impact. 4. The Cost Plus Fixed Fee pricing structure may offer flexibility but requires careful oversight. 5. Research and Development in Physical, Engineering, and Life Sciences is a critical sector for innovation. 6. The award to a large, established contractor like Northrop Grumman is typical for complex R&D.
Value Assessment
Rating: good
The contract value of $37.4 million over its duration is substantial for a single R&D project. Benchmarking against similar large-scale R&D contracts within the NIH or other federal agencies would be necessary for a precise value-for-money assessment. However, the fixed fee component suggests a degree of cost control. The long performance period (over 7 years) implies a complex, phased approach to research, which can be cost-effective if milestones are met efficiently.
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 environment is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of two bids, as indicated by the 'no' field, suggests a moderate level of competition for this specific R&D effort.
Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by driving down costs through a competitive bidding process.
Public Impact
The primary beneficiaries are the researchers and institutions involved in the physical, engineering, and life sciences, advancing scientific knowledge. The services delivered are critical research and development activities, potentially leading to new technologies, treatments, or scientific understanding. The geographic impact is likely concentrated around the performing organization's location in Maryland, but the scientific advancements can have a global reach. Workforce implications include employment for scientists, engineers, technicians, and support staff involved in the R&D process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, requiring diligent oversight to manage expenditures.
- The long duration of the contract necessitates sustained monitoring to ensure project objectives remain aligned with evolving scientific priorities.
- The complexity of R&D projects inherently carries risks of unforeseen challenges or delays, impacting timelines and budgets.
Positive Signals
- Awarding to a large, experienced contractor like Northrop Grumman suggests a high likelihood of technical capability and project execution.
- The full and open competition process indicates a structured approach to selecting the best value offer.
- The significant investment signals a commitment to advancing critical scientific fields, potentially yielding high-impact discoveries.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a broad category encompassing fundamental and applied research. Federal spending in R&D is crucial for driving innovation, economic growth, and national security. Comparable spending benchmarks would involve looking at other large-scale R&D grants and contracts awarded by agencies like NIH, NSF, and DOD, which often involve multi-year commitments and substantial funding.
Small Business Impact
The contract data indicates that small business set-asides were not utilized (ss: false, sb: false). This suggests the contract was not specifically targeted towards small businesses. For a contract of this nature and scale, it is common for large, established companies to be the primary awardees. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in this summary data. The impact on the small business ecosystem would depend on whether Northrop Grumman actively seeks small business subcontractors for specialized services or components.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Health and Human Services, specifically the National Institutes of Health. Mechanisms likely include regular progress reports, financial reviews, and milestone assessments. Accountability measures are tied to the Cost Plus Fixed Fee structure, where the fixed fee is earned upon successful completion of defined objectives. Transparency is generally maintained through contract databases, though specific project details might be proprietary. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- NIH Research Grants
- NSF Research and Development Funding
- Department of Defense R&D Contracts
- Biomedical Research Initiatives
- Advanced Technology Development Programs
Risk Flags
- Long contract duration requires sustained oversight.
- Cost Plus Fixed Fee structure necessitates careful financial monitoring.
- R&D projects inherently carry technical and scientific uncertainty.
Tags
research-and-development, health-and-human-services, national-institutes-of-health, northrop-grumman-systems-corporation, cost-plus-fixed-fee, full-and-open-competition, maryland, large-contract, multi-year, science-and-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $37.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. BISC - PHASE II
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $37.4 million.
What is the period of performance?
Start: 2004-09-30. End: 2011-12-31.
What is Northrop Grumman's track record with large federal R&D contracts, particularly with NIH?
Northrop Grumman Systems Corporation is a major aerospace and defense technology company with extensive experience in complex research and development projects for various government agencies, including the Department of Defense and NASA. While specific R&D contract details with NIH are not provided in this summary, their broad capabilities in engineering, systems integration, and scientific research suggest a strong capacity to manage large-scale, multi-disciplinary R&D efforts. Their historical performance on similar government contracts would typically be assessed through past performance evaluations during the bidding process, looking at factors like on-time delivery, budget adherence, and technical success.
How does the $37.4 million contract value compare to other NIH R&D investments?
The $37.4 million contract value, spread over approximately 7.5 years (2648 days), represents a significant but not unprecedented investment for a specific R&D project within the National Institutes of Health. NIH funds a vast portfolio of research, with individual grants and contracts ranging from thousands to hundreds of millions of dollars, depending on the scope, duration, and scientific field. This contract's value places it in the mid-to-large tier for federal R&D awards. To provide a precise comparison, one would need to analyze NIH's annual R&D spending by program area and contract size over similar timeframes.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) R&D contract of this magnitude?
The primary risks with a CPFF contract of this magnitude revolve around cost control and scope creep. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses allowable costs. This can incentivize the contractor to incur higher costs if oversight is not rigorous, potentially exceeding the anticipated total project cost if not managed carefully. For R&D, the inherent uncertainty of scientific discovery also poses a risk; unforeseen technical challenges could lead to significant cost overruns or delays, requiring careful management of the contract's scope and objectives to ensure alignment with the fixed fee and overall budget.
What does the 'Research and Development in the Physical, Engineering, and Life Sciences' category entail for NIH?
This broad category encompasses a wide spectrum of scientific inquiry funded by the NIH. 'Physical sciences' might include areas like biophysics or chemical biology. 'Engineering' could involve biomedical engineering, development of medical devices, or advanced imaging technologies. 'Life sciences' is the most expansive, covering genetics, molecular biology, immunology, neuroscience, and virtually all aspects of biological systems and health. For NIH, this category supports fundamental discoveries that underpin medical breakthroughs, development of new diagnostic and therapeutic tools, and understanding the mechanisms of disease.
How has federal spending in R&D, particularly within health sciences, trended in recent years?
Federal spending in Research and Development, especially within health sciences, has generally seen an upward trend over the past decade, driven by national priorities in public health, medical innovation, and response to emerging health crises. Agencies like the NIH consistently receive substantial appropriations, reflecting a commitment to advancing biomedical knowledge and improving healthcare outcomes. While specific year-to-year fluctuations occur based on budget cycles and administration priorities, the overall trajectory indicates sustained investment in R&D as a critical driver of scientific progress and economic competitiveness.
What is the significance of the contract duration (2648 days) for this R&D effort?
A contract duration of 2648 days, approximately 7.5 years, is highly significant for a Research and Development project. It signals that the scope of work is complex, requiring a long-term commitment to achieve its objectives. Such durations are typical for foundational research, multi-phase development projects, or studies requiring extensive data collection and analysis. This extended timeline allows for deeper investigation, iterative development, and the potential for significant scientific or technological advancements that cannot be achieved in shorter periods. It also implies a stable funding stream for the contractor over an extended period.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › N – Health R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation ID: NIHNIAIDDAIT0216
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 8110 GATEHOUSE RD, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $72,857,694
Exercised Options: $41,584,181
Current Obligation: $37,430,030
Timeline
Start Date: 2004-09-30
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2015-04-24
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