DoD Awards Northrop Grumman $23.18M for PNT Resiliency Enhancements
Contract Overview
Contract Amount: $23,184,605 ($23.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-03-03
End Date: 2026-03-04
Contract Duration: 2,923 days
Daily Burn Rate: $7.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IC LABOR FOR POSITIONING, NAVIGATION AND TIMING RESILIENCY ENHANCEMENTS
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $23.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IC LABOR FOR POSITIONING, NAVIGATION AND TIMING RESILIENCY ENHANCEMENTS Key points: 1. Significant investment in critical Positioning, Navigation, and Timing (PNT) capabilities. 2. Sole-source award to Northrop Grumman suggests unique expertise or limited alternatives. 3. Long contract duration (2018-2026) indicates ongoing PNT development needs. 4. Cost-plus award fee contract type allows for flexibility but requires strong oversight. 5. Focus on resiliency highlights potential vulnerabilities in current PNT systems.
Value Assessment
Rating: fair
The contract type (Cost Plus Award Fee) can lead to higher costs if not managed effectively. Benchmarking against similar PNT development contracts is difficult due to the specialized nature of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a determination that only Northrop Grumman could fulfill the requirement. This limits price discovery and potentially increases costs compared to a competitive environment.
Taxpayer Impact: Without competition, taxpayers may be paying a premium for these PNT enhancements. Robust oversight is crucial to ensure fair pricing and value.
Public Impact
Enhances national security by improving the reliability of PNT systems, crucial for military operations. Supports advanced defense capabilities, ensuring mission success in contested environments. Investments in PNT resiliency can have broader applications in civilian infrastructure reliant on accurate timing and location data.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
Positive Signals
- Focus on critical national security capability
- Potential for technological advancement in PNT
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on custom computer programming services for advanced defense applications. Spending benchmarks for PNT development are highly specialized and vary significantly based on technological complexity.
Small Business Impact
The awardee is a large corporation, and there is no indication of small business participation in this specific contract. Opportunities for small businesses may exist in subcontracting roles, but this is not explicitly stated.
Oversight & Accountability
The cost-plus award fee structure necessitates diligent oversight from the Missile Defense Agency to ensure performance objectives are met and costs are controlled. Regular reviews and audits are essential for accountability.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Sole-source award limits competition and potential cost savings.
- Cost-plus contract type can lead to higher costs if not managed tightly.
- Long contract duration increases exposure to cost fluctuations and evolving requirements.
- Lack of transparency on specific technical needs driving sole-source decision.
Tags
custom-computer-programming-services, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IC LABOR FOR POSITIONING, NAVIGATION AND TIMING RESILIENCY ENHANCEMENTS
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 $23.2 million.
What is the period of performance?
Start: 2018-03-03. End: 2026-03-04.
What specific technical challenges or vulnerabilities in existing PNT systems necessitated a sole-source award for these resiliency enhancements?
The specific technical challenges are not detailed in the provided data. However, PNT systems are vulnerable to jamming, spoofing, and signal degradation, particularly in complex operational environments. A sole-source award suggests Northrop Grumman possesses unique intellectual property, specialized technology, or critical expertise required to address these sophisticated threats effectively, potentially related to advanced signal processing or anti-jamming techniques.
How does the Missile Defense Agency ensure cost-effectiveness and prevent potential cost overruns with a sole-source, cost-plus award fee contract?
The Missile Defense Agency employs several mechanisms. The 'award fee' component incentivizes Northrop Grumman to meet or exceed performance targets, linking a portion of the profit to objective and subjective performance criteria. Robust program management, including detailed cost tracking, regular audits, and independent cost estimates, is crucial. Clear definition of work requirements and effective negotiation of indirect cost rates also help manage expenses.
What is the anticipated impact of these PNT resiliency enhancements on the operational effectiveness and survivability of DoD assets?
Enhanced PNT resiliency is critical for the operational effectiveness and survivability of DoD assets. It ensures that platforms (e.g., aircraft, ships, ground vehicles) can maintain accurate navigation and timing even when primary GPS signals are denied or degraded. This capability is vital for mission success, reducing fratricide, enabling coordinated maneuvers, and maintaining situational awareness in GPS-contested or denied environments.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ014718R0003
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 213 WYNN DR, HUNTSVILLE, AL, 35805
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,575,005
Exercised Options: $26,575,005
Current Obligation: $23,184,605
Actual Outlays: $733,767
Subaward Activity
Number of Subawards: 107
Total Subaward Amount: $31,659,283
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HQ014718D0005
IDV Type: IDC
Timeline
Start Date: 2018-03-03
Current End Date: 2026-03-04
Potential End Date: 2026-03-04 00:00:00
Last Modified: 2025-08-14
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