DoD Awards Northrop Grumman $34M for Advanced System Prototype Development and Testing
Contract Overview
Contract Amount: $34,091,384 ($34.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2017-08-30
End Date: 2019-06-30
Contract Duration: 669 days
Daily Burn Rate: $51.0K/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, ENGINEERING SERVICES, THE PURPOSE OF THIS TASK IS TO PERFORM SYSTEM DEVELOPMENT AND SYSTEM INTEGRATION AND TEST AND ANALYSIS OF THE ADVANCED SYSTEM PROTOTYPE.
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $34.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF, ENGINEERING SERVICES, THE PURPOSE OF THIS TASK IS TO PERFORM SYSTEM DEVELOPMENT AND SYSTEM INTEGRATION AND TEST AND ANALYSIS OF THE ADVANCED SYSTEM PROTOTYPE. Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for engineering services. 2. Focus on system development, integration, testing, and analysis of an advanced prototype. 3. Full and open competition was utilized for this contract. 4. The contract duration is 669 days, ending in June 2019.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it allows multiple vendors to bid, driving down costs.
Public Impact
Development of advanced system prototypes can lead to future technological advancements. Testing and analysis are crucial for ensuring the functionality and reliability of new systems. The contract supports the Department of Defense's modernization efforts. The duration of the contract suggests a significant undertaking in system development.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Lack of detailed cost breakdown makes per-unit cost benchmarking difficult.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense system development and testing.
Sector Analysis
This contract falls under Engineering Services, a sector crucial for defense modernization and technological advancement. Spending in this sector is often high due to the complexity and innovation required for defense systems.
Small Business Impact
The data does not indicate any specific involvement or subcontracting opportunities for small businesses in this contract.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, indicating standard oversight procedures for defense contracts. Further oversight details are not provided.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Limited information on specific performance metrics.
- Potential for cost overruns without strict oversight.
- Prototype development inherently carries technical risks.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF, ENGINEERING SERVICES, THE PURPOSE OF THIS TASK IS TO PERFORM SYSTEM DEVELOPMENT AND SYSTEM INTEGRATION AND TEST AND ANALYSIS OF THE ADVANCED SYSTEM PROTOTYPE.
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 $34.1 million.
What is the period of performance?
Start: 2017-08-30. End: 2019-06-30.
What specific metrics were used to evaluate the success of the system development and testing phases?
The provided data does not specify the success metrics for the system development and testing. Typically, such metrics would include performance benchmarks, reliability rates, successful integration with existing systems, and adherence to technical specifications. Without these, assessing the true value and effectiveness of the prototype development is challenging.
What are the potential risks associated with the Cost Plus Fixed Fee contract structure for this advanced prototype?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs, as their fee is fixed regardless of the final cost. This can lead to cost overruns if the government does not maintain rigorous oversight of expenditures and project scope. Scope creep is also a significant risk in prototype development.
How does the outcome of this prototype development align with broader Department of Defense technological goals?
The alignment depends on the specific nature of the 'advanced system prototype.' If it addresses a critical capability gap or introduces a disruptive technology, it aligns well with DoD goals for maintaining technological superiority. However, without knowing the prototype's function, its strategic fit remains speculative. The contract's existence suggests it's considered important.
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: $34,371,790
Exercised Options: $34,371,790
Current Obligation: $34,091,384
Subaward Activity
Number of Subawards: 84
Total Subaward Amount: $8,074,146
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: 2017-08-30
Current End Date: 2019-06-30
Potential End Date: 2019-06-30 00:00:00
Last Modified: 2023-07-26
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