Missile Defense Agency awards $17M contract for Ballistic Missile Defense Systems to Northrop Grumman

Contract Overview

Contract Amount: $17,050,166 ($17.1M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2003-01-29

End Date: 2006-03-31

Contract Duration: 1,157 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200307!000262!9700!ZD60 !MISSILE DEFENSE AGENCY !GS23F0058K !C!N! !N!HQ000603F0007 !20030129!20031231!020219221!004179453!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!100 SUN AVENUE, NE !ALBUQUERQUE !VA!87109!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000002500000!N!N!000000000000!B546!SECURITY STUDIES (PHYSICAL & PERSONAL) !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !541330!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200307!000262!9700!ZD60 !MISSILE DEFENSE AGENCY !GS23F0058K !C!N! !N!HQ000603F0007 !20030129!20031231!020219221!004179453!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!100 SUN AVENUE, NE !ALBUQUERQUE !VA!87109!03000!013!51!ARLINGTON !ARLIN… Key points: 1. The contract is for Ballistic Missile Defense Systems, a critical component of national security. 2. Northrop Grumman, a major defense contractor, is the awardee. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The total value is $17.05 million, with a duration of 1157 days.

Value Assessment

Rating: good

The contract value of $17.05 million over approximately three years appears reasonable for specialized defense systems. Benchmarking against similar complex system development contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for essential defense capabilities.

Public Impact

Enhances national security through advanced missile defense capabilities. Supports a major defense contractor, contributing to the defense industrial base. The contract's duration suggests a long-term commitment to maintaining and developing critical defense infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in complex defense system development.
  • Reliance on a single contractor for critical systems.
  • Scope creep could increase the final cost beyond the initial award.

Positive Signals

  • Awarded through full and open competition.
  • Clear contract duration and value.
  • Supports a well-established defense contractor.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to defense systems. Spending in this area is driven by national security priorities and technological advancements in defense capabilities.

Small Business Impact

The awardee is a large corporation, and there is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The Missile Defense Agency is responsible for developing and deploying systems to protect the United States from ballistic missile attacks. Oversight would involve monitoring contract performance and expenditures.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Missile Defense Agency Programs

Risk Flags

  • Complexity of defense systems can lead to unforeseen costs.
  • Long-term reliance on a single prime contractor.
  • Potential for technological obsolescence.
  • Geopolitical factors influencing defense spending priorities.

Tags

engineering-services, department-of-defense, va, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200307!000262!9700!ZD60 !MISSILE DEFENSE AGENCY !GS23F0058K !C!N! !N!HQ000603F0007 !20030129!20031231!020219221!004179453!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!100 SUN AVENUE, NE !ALBUQUERQUE !VA!87109!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000002500000!N!N!000000000000!B546!SECURITY STUDIES (PHYSICAL & PERSONAL) !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !541330!E! !6! ! ! ! ! !99990909!B

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 (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2003-01-29. End: 2006-03-31.

What specific services or systems are included under 'Ballistic Missile Defense Systems'?

The data indicates the contract is for 'BALLISTIC MISSILE DEFENSE SYS' and falls under NAICS code 541330 (Engineering Services). This typically encompasses research, design, development, testing, and integration of missile defense technologies and platforms, potentially including radar, interceptors, and command and control systems.

What are the key performance metrics and deliverables for this contract?

The provided data does not detail specific performance metrics or deliverables. However, for a contract of this nature, key metrics would likely include system effectiveness, reliability, integration capabilities, and adherence to technical specifications. Deliverables would typically involve technical reports, system components, and operational readiness assessments.

How does the pricing structure (Firm Fixed Price) mitigate risks for the government?

A Firm Fixed Price (FFP) contract shifts most of the risk to the contractor. The government agrees to pay a set price regardless of the contractor's actual costs. This structure provides cost certainty for the government and incentivizes the contractor to manage costs efficiently to maximize profit.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Titan II Inc. (UEI: 016435559)

Address: 12011 SUNSET HILLS ROAD, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: GS23F0058K

IDV Type: FSS

Timeline

Start Date: 2003-01-29

Current End Date: 2006-03-31

Potential End Date: 2006-03-31 00:00:00

Last Modified: 2010-06-15

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