DoD's $46.2M C-RAM support contract awarded to Northrop Grumman for enhanced threat detection capabilities
Contract Overview
Contract Amount: $46,205,067 ($46.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2017-07-28
End Date: 2019-02-28
Contract Duration: 580 days
Daily Burn Rate: $79.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF CET 17-732, SUPPORT FOR COUNTER - ROCKET, ARTILLERY, MORTAR (C-RAM), OCONUS THEATER CHANGES (SCOTCH) THE PURPOSE OF THIS TASK IS TO DEVELOP, BUILD AND DEPLOY TAILORED LEGACY RESET KITS WHICH MAXIMIZE THE INTEGRATION OF ANY RE-USEABLE, IN-PLACE LEGACY COMPONENTS ALONG WITH NEW RAM WARN COMPONENTS TO ENHANCE THE OFS SENSE AND WARN CAPABILITIES, STREAMLINE INSTALLATION TIMELINES AND REDUCE COST.
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $46.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF CET 17-732, SUPPORT FOR COUNTER - ROCKET, ARTILLERY, MORTAR (C-RAM), OCONUS THEATER CHANGES (SCOTCH) THE PURPOSE OF THIS TASK IS TO DEVELOP, BUILD AND DEPLOY TAILORED LEGACY RESET KITS WHICH MAXIMIZE THE INTEGRATION OF ANY RE-USEABLE, IN-PLACE LEGACY COMPONENTS ALON… Key points: 1. Contract focuses on integrating legacy components with new technology to improve Counter-Rocket, Artillery, and Mortar (C-RAM) systems. 2. The objective is to streamline installation and reduce costs through tailored reset kits. 3. This contract falls under engineering services for defense systems, specifically enhancing sensor and warning capabilities. 4. The duration of the contract was 580 days, indicating a medium-term project. 5. Northrop Grumman, a major defense contractor, was awarded this task order. 6. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee for profit. 7. The contract was awarded via full and open competition, suggesting a competitive bidding process.
Value Assessment
Rating: good
The contract value of $46.2 million for engineering services to enhance C-RAM systems appears reasonable given the scope of developing, building, and deploying tailored reset kits. While direct comparisons are difficult without specific details on the reset kits' complexity and the integration challenges, the focus on cost reduction through legacy component reuse suggests an effort towards value for money. The Cost Plus Fixed Fee (CPFF) structure, while offering flexibility, requires careful oversight to manage costs effectively. Benchmarking against similar defense system integration projects would provide a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the open competition suggests a robust process aimed at achieving the best value for the government. This approach typically fosters price discovery and encourages contractors to offer competitive pricing and innovative solutions to win the award.
Taxpayer Impact: Taxpayers benefit from a competitive process that is intended to drive down costs and ensure the government receives the most advantageous terms for its investment in critical defense capabilities.
Public Impact
The primary beneficiaries are the Department of Defense (DoD) and its operational forces requiring enhanced Counter-Rocket, Artillery, and Mortar (C-RAM) protection. The contract delivers improved sense and warn capabilities, crucial for protecting personnel and assets in high-threat environments. Services include the development, building, and deployment of specialized legacy reset kits for C-RAM systems. The geographic impact is OCONUS (Outside the Continental United States), targeting theaters with specific threat profiles. Workforce implications include specialized engineering and technical roles required for system development and deployment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
- The effectiveness of 'tailored legacy reset kits' in maximizing integration and reducing costs needs ongoing validation.
- Dependence on a single contractor (Northrop Grumman) for this specific task order, despite open competition, warrants monitoring.
- The OCONUS deployment introduces logistical and operational complexities that could impact timelines and costs.
Positive Signals
- Focus on maximizing integration of reusable legacy components aims to reduce overall system costs.
- Streamlining installation timelines through tailored kits can lead to faster deployment of enhanced capabilities.
- The contract was awarded through full and open competition, suggesting a competitive environment that should drive value.
- Enhancing C-RAM capabilities directly contributes to force protection, a critical mission objective.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330) and specifically supports the defense industry's need for advanced threat detection and protection systems. The market for C-RAM systems and related support services is driven by geopolitical threats and the need for force protection. Spending in this area is significant, with numerous contracts awarded for system development, integration, and sustainment. This particular contract focuses on a niche but critical aspect of defense technology: optimizing existing infrastructure through innovative integration solutions.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation and does not indicate any specific small business set-aside provisions. As a large prime contractor, Northrop Grumman may engage small businesses for subcontracting opportunities, but the primary award was not directed towards small businesses. The impact on the small business ecosystem would depend on Northrop Grumman's subcontracting strategy for this particular task order.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for contract administration. The Cost Plus Fixed Fee (CPFF) nature of the contract necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency is facilitated through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Counter-Rocket, Artillery, and Mortar (C-RAM) Systems
- Defense Engineering Services
- Force Protection Systems
- Legacy System Modernization
- OCONUS Defense Support
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
- Integration of legacy and new components may present unforeseen technical challenges.
- OCONUS deployment introduces logistical complexities and potential delays.
- Effectiveness of 'tailored reset kits' needs validation post-deployment.
Tags
defense, department-of-defense, northrop-grumman, engineering-services, counter-rocket-artillery-mortar, c-ram, oconus, cost-plus-fixed-fee, full-and-open-competition, system-integration, legacy-systems, maryland
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF CET 17-732, SUPPORT FOR COUNTER - ROCKET, ARTILLERY, MORTAR (C-RAM), OCONUS THEATER CHANGES (SCOTCH) THE PURPOSE OF THIS TASK IS TO DEVELOP, BUILD AND DEPLOY TAILORED LEGACY RESET KITS WHICH MAXIMIZE THE INTEGRATION OF ANY RE-USEABLE, IN-PLACE LEGACY COMPONENTS ALONG WITH NEW RAM WARN COMPONENTS TO ENHANCE THE OFS SENSE AND WARN CAPABILITIES, STREAMLINE INSTALLATION TIMELINES AND REDUCE COST.
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $46.2 million.
What is the period of performance?
Start: 2017-07-28. End: 2019-02-28.
What is Northrop Grumman's track record with similar defense system integration contracts?
Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in developing, integrating, and supporting complex defense systems. They have a long history of working on programs involving radar, missile defense, and command and control systems, which are relevant to C-RAM capabilities. Their track record includes numerous large-scale contracts with the Department of Defense and other government agencies. While specific details on past C-RAM integration projects are not provided here, their broad expertise in aerospace and defense technology suggests a strong capability to execute this type of contract. Performance metrics and past performance evaluations from previous contracts would offer a more granular view of their success in delivering similar solutions on time and within budget.
How does the value of this contract compare to similar C-RAM system enhancement projects?
Directly comparing the $46.2 million value of this specific task order to other C-RAM system enhancement projects is challenging without detailed scope and complexity information for comparable contracts. However, the contract's focus on developing and deploying 'tailored legacy reset kits' suggests a specialized integration effort rather than a full system procurement or development. The value appears reasonable for engineering services aimed at optimizing existing capabilities through component reuse and integration. Larger contracts for entirely new C-RAM system development or acquisition can range from hundreds of millions to billions of dollars. This contract's value is more aligned with specific upgrade, integration, or sustainment efforts within a broader C-RAM program.
What are the primary risks associated with the 'tailored legacy reset kits' approach?
The primary risks associated with the 'tailored legacy reset kits' approach involve technical integration challenges, potential cost overruns, and schedule delays. Integrating 're-usable, in-place legacy components' with 'new RAM WARN components' can be complex, especially if the legacy systems are poorly documented or have unforeseen compatibility issues. The Cost Plus Fixed Fee (CPFF) contract type, while providing flexibility, requires diligent cost management to prevent the 'plus' portion from escalating significantly. Schedule risks may arise from the need for custom kit development and testing, as well as logistical challenges in deploying these kits to OCONUS theaters. Ensuring the 'enhanced sense and warn capabilities' are effectively realized and meet performance requirements is also a key risk.
How effective are CPFF contracts in achieving cost savings through component reuse?
Cost Plus Fixed Fee (CPFF) contracts can be effective in achieving cost savings through component reuse, but their success is highly dependent on robust oversight and clear contract terms. In this case, the contract aims to reduce costs by maximizing the integration of existing legacy components. The 'fixed fee' component incentivizes the contractor to manage costs efficiently to protect their profit margin. However, CPFF contracts inherently carry a risk of cost escalation if the scope is not well-defined or if unforeseen technical challenges arise, leading to increased costs that are reimbursed by the government. The government's role in scrutinizing costs and ensuring they are reasonable and allocable is critical to realizing the intended cost savings from component reuse.
What is the historical spending trend for C-RAM support and enhancement within the DoD?
Historical spending on Counter-Rocket, Artillery, and Mortar (C-RAM) support and enhancement within the Department of Defense has been substantial and is driven by ongoing global security threats. The U.S. military has invested heavily in C-RAM capabilities to protect its personnel and facilities in various theaters, particularly in the Middle East. Spending trends reflect a continuous effort to upgrade existing systems, develop new technologies, and ensure operational readiness. This includes funding for research and development, procurement of new systems, integration services, and sustainment contracts. The specific amount spent annually can fluctuate based on geopolitical events, strategic priorities, and budget allocations, but it generally represents a significant and consistent investment area for defense.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HQ072715R0001
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1580A W NURSERY RD, LINTHICUM HEIGHTS, MD, 21090
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,223,398
Exercised Options: $46,223,398
Current Obligation: $46,205,067
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ072716D0004
IDV Type: IDC
Timeline
Start Date: 2017-07-28
Current End Date: 2019-02-28
Potential End Date: 2019-02-28 00:00:00
Last Modified: 2022-07-28
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