DoD Awards Northrop Grumman $113.6M for Counter-Threat Launcher System

Contract Overview

Contract Amount: $113,592,979 ($113.6M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2018-07-09

End Date: 2023-03-31

Contract Duration: 1,726 days

Daily Burn Rate: $65.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS TASK IS TO DESIGN, DEVELOP, INTEGRATE AND DEMONSTRATE THE LAUNCHER SYSTEM FOR COUNTERING EMERGING NEAR PEER THREATS, LEVERAGING EXISTING SYSTEMS TO DEMONSTRATE INNOVATIVE SYSTEMS IN THE NEAR TERM WHICH WILL LEAD TO ADDITIONAL RAPID FIELDING CAPABILITIES FOR THE WARFIGHTER.

Place of Performance

Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $113.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THE PURPOSE OF THIS TASK IS TO DESIGN, DEVELOP, INTEGRATE AND DEMONSTRATE THE LAUNCHER SYSTEM FOR COUNTERING EMERGING NEAR PEER THREATS, LEVERAGING EXISTING SYSTEMS TO DEMONSTRATE INNOVATIVE SYSTEMS IN THE NEAR TERM WHICH WILL LEAD TO ADDITIONAL RAPID FIELDING CAPABILITIES FOR TH… Key points: 1. Significant investment in advanced defense technology to counter near-peer threats. 2. Contract awarded to Northrop Grumman, a major defense contractor. 3. Focus on leveraging existing systems for rapid fielding of new capabilities. 4. Potential for follow-on rapid fielding of advanced warfighter capabilities.

Value Assessment

Rating: good

The contract value of $113.6 million for engineering services appears reasonable given the scope of designing, developing, and integrating a complex launcher system. Benchmarking against similar defense system development contracts would provide a more precise assessment.

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 that likely led to a fair price discovery. The specific details of the competition, such as the number of bidders, are not provided.

Taxpayer Impact: Taxpayer funds are being invested in advanced defense capabilities, aiming to maintain technological superiority and national security.

Public Impact

Enhances U.S. military's ability to counter advanced threats from near-peer adversaries. Promotes innovation in defense technology through integration of existing systems. Supports the warfighter by providing advanced, rapidly deployable capabilities. Contributes to the defense industrial base and technological advancement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Complexity of integrating existing systems with new development.
Potential for cost overruns in advanced R&D projects.
Ensuring timely delivery of critical warfighting capabilities.

Positive Signals

Leverages existing technologies for faster development.
Focus on near-term demonstration and rapid fielding.
Addresses critical emerging threats.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense system development. Spending in this area is driven by national security priorities and the need for technological superiority against evolving threats.

Small Business Impact

The data indicates the prime contractor is Northrop Grumman Systems Corporation. There is no explicit mention of small business participation in this specific contract award, which warrants further investigation.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration and oversight. The 'st' and 'sn' fields suggest oversight within Maryland.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Technological obsolescence risk in rapidly evolving threat landscape.
Integration complexity of leveraging existing systems.
Potential for schedule delays in development and demonstration.
Ensuring long-term cost-effectiveness and sustainment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $113.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THE PURPOSE OF THIS TASK IS TO DESIGN, DEVELOP, INTEGRATE AND DEMONSTRATE THE LAUNCHER SYSTEM FOR COUNTERING EMERGING NEAR PEER THREATS, LEVERAGING EXISTING SYSTEMS TO DEMONSTRATE INNOVATIVE SYSTEMS IN THE NEAR TERM WHICH WILL LEAD TO ADDITIONAL RAPID FIELDING CAPABILITIES FOR THE WARFIGHTER.

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 $113.6 million.

What is the period of performance?

Start: 2018-07-09. End: 2023-03-31.

What specific existing systems are being leveraged, and what is the cost-benefit analysis of this integration approach compared to developing entirely new systems?

The contract aims to integrate existing systems to accelerate the development and deployment of a new launcher system for near-peer threats. While this approach can reduce initial development time and costs, a thorough analysis of the integration challenges, potential performance limitations, and long-term sustainment costs is crucial. The cost-benefit would depend on the maturity of the existing systems and the complexity of their integration.

What are the key performance metrics and milestones for demonstrating the launcher system's effectiveness against emerging near-peer threats?

Key performance metrics would likely include accuracy, range, rate of fire, target acquisition speed, and reliability under various operational conditions. Milestones would involve successful design reviews, prototype development, integration testing, and field demonstrations against simulated or actual near-peer threat profiles. The effectiveness will be measured by its ability to neutralize or deter these advanced threats.

How will the 'rapid fielding capabilities' be sustained and updated to maintain a technological edge against evolving near-peer threats beyond the initial contract period?

Sustaining rapid fielding capabilities requires a proactive strategy for continuous research, development, and adaptation. This includes establishing robust feedback loops from warfighters, investing in agile development methodologies, and fostering strong partnerships with industry for ongoing innovation. Future contracts and program adjustments will be necessary to incorporate technological advancements and counter new threat evolutions.

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: $114,267,199

Exercised Options: $114,267,199

Current Obligation: $113,592,979

Actual Outlays: $6,652,554

Subaward Activity

Number of Subawards: 566

Total Subaward Amount: $78,789,391

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