Missile Defense Agency awards $36.3M contract for critical early warning training systems to Northrop Grumman
Contract Overview
Contract Amount: $36,271,272 ($36.3M)
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: $12.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: GF::OT::IGF THE SCOPE OF WORK FOR THIS AWARD WILL INCLUDE OPERATION OF THE MISSILE DEFENSE SPACE WARNING TOOL (MDST) TO SATISFY THE WARFIGHTER DEMAND FOR HIGH FIDELITY EARLY WARNING (EW) TRAINING TO INCLUDE REAL-WORLD OPERATIONAL BALLISTIC MISSILE DEFENSE SYSTEM (BMDS) VERIFICATION AND VALIDATION, AEGIS SHIPBOARD CONSOLE CERTIFICATION, AND WARFIGHTER EXERCISE SUPPORT. THIS INCLUDES PROVIDING EXERCISE SUPPORT TO COMBATANT COMMANDS, MILITARY SERVICES, INTERNATIONAL PARTNERS AND OTHER INTERESTED PARTICIPANTS BY PROVIDING EW THREAT DATA OVER THE OPERATIONAL INTEGRATED BROADCAST SERVICE/COMMON INTERACTIVE BROADCAST (IBS/CIB) AND OTHER TACTICAL INTERFACES.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $36.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: GF::OT::IGF THE SCOPE OF WORK FOR THIS AWARD WILL INCLUDE OPERATION OF THE MISSILE DEFENSE SPACE WARNING TOOL (MDST) TO SATISFY THE WARFIGHTER DEMAND FOR HIGH FIDELITY EARLY WARNING (EW) TRAINING TO INCLUDE REAL-WORLD OPERATIONAL BALLISTIC MISSILE DEFENSE SYSTEM (BMDS) VERIFICATI… Key points: 1. Contract supports warfighter demand for high-fidelity early warning training and real-world BMDS verification. 2. Services include providing exercise support to combatant commands, military services, and international partners. 3. The contract is a Cost Plus Award Fee type, allowing for performance-based incentives. 4. Northrop Grumman Systems Corporation is the sole awardee, indicating a non-competitive procurement. 5. The contract duration extends through March 2026, ensuring sustained support for missile defense. 6. This award falls under Custom Computer Programming Services, highlighting the IT-centric nature of the support.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee structure allows for flexibility in pricing based on performance. Without detailed breakdowns of award fees and cost components, a precise value-for-money assessment is challenging. Benchmarking against similar IT services for defense training systems would be necessary for a more robust comparison. The total award amount of $36.3 million over its period of performance suggests a significant investment in specialized defense capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. The absence of a competitive bidding process means that the pricing and terms were negotiated directly with Northrop Grumman Systems Corporation. While sole-source awards can be justified for specialized capabilities or existing systems, they limit the potential for price discovery and may not always yield the most cost-effective outcome for the government.
Taxpayer Impact: Taxpayers may not benefit from the cost savings that typically arise from a competitive bidding process. The government relies on negotiation to ensure fair pricing, which can be less transparent than market-driven competition.
Public Impact
Warfighters in missile defense roles will benefit from enhanced training capabilities. Services delivered include high-fidelity early warning training and ballistic missile defense system verification. The geographic impact is national, supporting various commands and military services. International partners involved in missile defense cooperation will also receive support. The contract ensures the continued operation and maintenance of critical training infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition limits price transparency and potential cost savings.
- Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed tightly.
- Reliance on a single contractor for critical training systems poses a potential risk if performance degrades.
Positive Signals
- Northrop Grumman is an established defense contractor with significant experience in complex systems.
- The Cost Plus Award Fee structure incentivizes performance, potentially leading to high-quality service delivery.
- The contract duration provides stability and ensures continuity of essential training support.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on custom computer programming services for defense applications. The market for defense IT services is substantial, driven by the need for advanced technological solutions to support military operations. Comparable spending benchmarks would involve analyzing other contracts for simulation, training, and command and control systems within the Department of Defense and other federal agencies. The Missile Defense Agency's spending reflects the ongoing investment in sophisticated systems to counter evolving threats.
Small Business Impact
This contract does not appear to have a small business set-aside. Given the sole-source nature and the specialized requirements for operating missile defense training systems, it is unlikely that subcontracting opportunities for small businesses would be a primary focus unless specifically mandated. The impact on the small business ecosystem is minimal for this particular award.
Oversight & Accountability
Oversight for this contract would typically be managed by the Missile Defense Agency's contracting officers and program managers. Performance monitoring, adherence to cost ceilings, and achievement of award fee criteria would be key areas of focus. Transparency is facilitated through contract reporting mechanisms, though the sole-source nature limits public insight into the negotiation process. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Missile Defense Systems
- Ballistic Missile Defense System (BMDS)
- Training and Simulation Services
- Early Warning Systems
- Department of Defense IT Services
Risk Flags
- Sole-source procurement
- Cost Plus Award Fee contract type
- Critical defense training system operation
Tags
it, defense, missile-defense-agency, northrop-grumman-systems-corporation, delivery-order, sole-source, cost-plus-award-fee, custom-computer-programming-services, training-support, early-warning-systems, alabama, national
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. GF::OT::IGF THE SCOPE OF WORK FOR THIS AWARD WILL INCLUDE OPERATION OF THE MISSILE DEFENSE SPACE WARNING TOOL (MDST) TO SATISFY THE WARFIGHTER DEMAND FOR HIGH FIDELITY EARLY WARNING (EW) TRAINING TO INCLUDE REAL-WORLD OPERATIONAL BALLISTIC MISSILE DEFENSE SYSTEM (BMDS) VERIFICATION AND VALIDATION, AEGIS SHIPBOARD CONSOLE CERTIFICATION, AND WARFIGHTER EXERCISE SUPPORT. THIS INCLUDES PROVIDING EXERCISE SUPPORT TO COMBATANT COMMANDS, MILITARY SERVICES, INTERNATIONAL PARTNERS AND OTHER INTERESTED P
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 $36.3 million.
What is the period of performance?
Start: 2018-03-03. End: 2026-03-04.
What is Northrop Grumman's track record with similar missile defense training systems?
Northrop Grumman Systems Corporation has a long-standing history of supporting U.S. defense programs, including significant involvement in missile defense systems. Their experience spans various aspects of defense technology, from space-based sensors to ground systems and command and control. For missile defense training, they have likely provided or supported simulation, modeling, and data analysis services for complex systems. Their established presence in the defense sector suggests a deep understanding of the operational requirements and technical complexities involved in supporting warfighter training for systems like the BMDS. Specific details on past performance for the MDST or directly comparable systems would require access to performance reports and historical contract data.
How does the $36.3 million cost compare to similar early warning training systems?
Benchmarking the $36.3 million cost for the Missile Defense Space Warning Tool (MDST) operation against similar early warning training systems is challenging without specific comparable contract data. However, considering the highly specialized nature of missile defense, the advanced technology involved (real-world BMDS verification, AEGIS console certification), and the extended performance period (approximately 8 years), this figure appears to be within a reasonable range for such critical national security support. Contracts for advanced simulation and training systems for complex defense platforms often run into tens of millions of dollars. The Cost Plus Award Fee structure also introduces variability, making direct comparisons difficult without knowing the achieved award fees and underlying costs.
What are the primary risks associated with this sole-source contract?
The primary risk associated with this sole-source contract is the lack of competitive pressure, which could lead to suboptimal pricing and reduced incentive for cost efficiency. Without competition, the government relies heavily on negotiation to ensure fair value, and there's a potential for higher costs than if multiple vendors had bid. Another risk is contractor dependency; the Missile Defense Agency is reliant on Northrop Grumman for critical training capabilities, making any performance issues or disruptions particularly impactful. Furthermore, the Cost Plus Award Fee structure, while incentivizing performance, can also lead to cost growth if not meticulously managed and if award fee criteria are not strictly defined and monitored.
How effective is the MDST in preparing warfighters for real-world missile defense scenarios?
The effectiveness of the MDST in preparing warfighters is directly tied to its ability to provide 'high fidelity early warning (EW) training' and support 'real-world operational ballistic missile defense system (BMDS) verification and validation.' The contract specifies providing EW threat data over operational interfaces and supporting exercises for combatant commands, military services, and international partners. This suggests a design focused on realistic training environments. The effectiveness is likely measured by the quality and accuracy of the threat data provided, the realism of the simulations, and the successful integration with other training and operational systems. Formal evaluations and feedback from warfighter exercises would be the best indicators of its effectiveness.
What are the historical spending patterns for missile defense training and simulation by the MDA?
Historical spending patterns for missile defense training and simulation by the Missile Defense Agency (MDA) indicate a consistent and significant investment in these capabilities. The MDA's mission inherently requires advanced training solutions to prepare personnel for operating and defending against complex ballistic missile threats. Over the years, the MDA has awarded numerous contracts for simulation, modeling, analysis, and training support, often involving large dollar values due to the sophisticated nature of the systems. Spending is driven by the need to test, verify, and validate missile defense systems, as well as to train operators and decision-makers. This $36.3 million award for MDST operations aligns with the agency's ongoing commitment to maintaining a high level of readiness and technical proficiency in missile defense.
What is the potential impact of this contract on future missile defense technology development?
This contract, focused on operating and supporting the existing Missile Defense Space Warning Tool (MDST), primarily ensures the continuity and enhancement of current training capabilities. While it doesn't directly fund the development of new missile defense technologies, the data generated and the operational feedback from warfighter exercises supported by the MDST can inform future technology development. Insights into training effectiveness, system performance during exercises, and evolving threat landscapes can guide research and development efforts for next-generation missile defense systems. Northrop Grumman's role in operating the system also positions them to identify areas for improvement and potential technological upgrades, which could influence future contract opportunities.
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: $39,033,631
Exercised Options: $39,033,631
Current Obligation: $36,271,272
Actual Outlays: $763,290
Subaward Activity
Number of Subawards: 140
Total Subaward Amount: $50,269,017
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: 2026-01-15
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