DoD's $1.22B R&D Contract with Northrop Grumman for Missile Defense Systems Awarded via Full and Open Competition
Contract Overview
Contract Amount: $1,220,855,591 ($1.2B)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2003-12-03
End Date: 2014-10-31
Contract Duration: 3,985 days
Daily Burn Rate: $306.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: R&D
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $1.22 billion to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: Key points: 1. Significant investment in advanced missile defense technology. 2. Large contract awarded to a major defense contractor. 3. Full and open competition suggests potential for competitive pricing. 4. Focus on R&D in physical and engineering sciences.
Value Assessment
Rating: good
The contract value of $1.22 billion over 11 years is substantial. Benchmarking is difficult without specific deliverables, but the duration and scope suggest a significant R&D effort.
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 had the opportunity to compete. This method is generally expected to foster competitive pricing and ensure the government receives the best value.
Taxpayer Impact: Taxpayer funds are being invested in critical national security research and development, aiming to enhance defense capabilities.
Public Impact
Enhances national security through advanced missile defense capabilities. Supports technological innovation in a critical defense sector. Potential for job creation within the defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to scope creep or cost overruns.
- Reliance on a single large contractor for critical technology.
Positive Signals
- Awarded through full and open competition.
- Investment in vital R&D for national security.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority in defense.
Small Business Impact
The data indicates this contract was not set aside for small businesses, suggesting large prime contractors are involved. Subcontracting opportunities for small businesses may exist but are not detailed here.
Oversight & Accountability
Oversight would typically involve regular reporting, milestone reviews, and performance evaluations by the Department of Defense to ensure the contractor meets contract requirements and manages costs effectively.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Long contract duration (11 years).
- High contract value ($1.22 billion).
- Solely focused on R&D, with uncertain outcomes.
- Awarded to a single large prime contractor.
Tags
research-and-development-in-the-physical, department-of-defense, va, dca, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.22 billion to NORTHROP GRUMMAN SYSTEMS CORPORATION. See the official description on USAspending.
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 $1.22 billion.
What is the period of performance?
Start: 2003-12-03. End: 2014-10-31.
What specific technological advancements are expected from this $1.22 billion R&D investment?
The contract focuses on Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) under NAICS code 541712, specifically for missile defense. Expected advancements likely include improved sensor technology, interceptor capabilities, advanced materials, and sophisticated command and control systems to counter evolving threats.
What are the primary risks associated with a long-term, high-value R&D contract like this?
Key risks include technological obsolescence if the research doesn't keep pace with threats, potential cost overruns due to the inherent uncertainties in R&D, and the possibility that the final developed technology may not meet performance requirements or be effectively integrated into existing systems.
How does the 'full and open competition' award method impact the effectiveness of this spending?
Full and open competition is intended to maximize effectiveness by allowing the government to select the most capable offeror at the best price. It drives innovation and efficiency through market forces, reducing the risk of paying inflated prices and increasing the likelihood of receiving a technologically superior solution.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 12011 SUNSET HILLS RD, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-12-03
Current End Date: 2014-10-31
Potential End Date: 2014-10-31 00:00:00
Last Modified: 2015-07-15
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)