Northrop Grumman awarded $61M for advanced microelectronics solutions for Panther and Jaguar systems
Contract Overview
Contract Amount: $61,081,093 ($61.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2019-03-28
End Date: 2022-04-30
Contract Duration: 1,129 days
Daily Burn Rate: $54.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SERVICES: PANTHER AND JAGUAR: PHASE 1 - STUDY, ANALYZE, AND DESIGN ADVANCED TECHNOLOGY MICROELECTRONIC AND SOFTWARE SOLUTIONS TO ADD CAPABILITY AND IMPROVE PERFORMANCE OF THE MICROELECTRONICS-BASED PANTHER AND JAGUAR SYSTEMS.
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $61.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ENGINEERING SERVICES: PANTHER AND JAGUAR: PHASE 1 - STUDY, ANALYZE, AND DESIGN ADVANCED TECHNOLOGY MICROELECTRONIC AND SOFTWARE SOLUTIONS TO ADD CAPABILITY AND IMPROVE PERFORMANCE OF THE MICROELECTRONICS-BASED PANTHER AND JAGUAR SYSTEMS. Key points: 1. Contract focuses on enhancing microelectronics for critical defense systems. 2. Value-for-money assessment is pending further analysis of performance metrics. 3. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 4. Risk indicators are moderate, given the advanced technology focus and fixed-fee structure. 5. Performance context is tied to the development of advanced technological capabilities. 6. Sector positioning is within the defense microelectronics and engineering services domain.
Value Assessment
Rating: fair
The contract value of $61.1 million for engineering services appears within a reasonable range for advanced technology development. However, a definitive value-for-money assessment requires benchmarking against similar specialized microelectronics design contracts, which are not readily available in the public domain. The Cost Plus Fixed Fee (CPFF) contract type introduces some risk of cost overruns, though the fixed fee component provides a ceiling. Further analysis of deliverables and achieved performance against objectives is needed to fully evaluate the value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not detailed, but this procurement method generally fosters a competitive environment, which can lead to more favorable pricing and innovative solutions for the government. The agency's commitment to open competition is a positive indicator for price discovery.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value and technological solutions at a fair price.
Public Impact
The Department of Defense benefits from enhanced capabilities in its Panther and Jaguar systems. Advanced microelectronic and software solutions are delivered to improve system performance. The primary geographic impact is within the defense sector, supporting national security objectives. Workforce implications include specialized engineering and technical roles within Northrop Grumman.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly.
- Focus on advanced technology development inherently carries technical risks and potential for schedule delays.
- Limited public data on specific performance metrics makes independent value assessment challenging.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Contractor, Northrop Grumman, is a major defense contractor with a track record in advanced systems.
- Focus on improving existing critical defense systems suggests a clear and defined objective.
Sector Analysis
This contract falls within the Defense Microelectronics Activity's purview, a specialized sector focused on the design, development, and sustainment of microelectronics for defense applications. The market for advanced microelectronics is highly specialized, with significant R&D investment and a limited number of prime contractors capable of undertaking such complex projects. Spending in this area is critical for maintaining technological superiority in defense systems.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. As a large prime contract awarded to a major defense corporation, the direct impact on the small business ecosystem is likely minimal unless Northrop Grumman actively engages small businesses as subcontractors for specialized components or services.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Microelectronics Activity, with potential involvement from the Department of Defense's Inspector General for audits and investigations. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally limited for defense contracts of this nature, with specific details often classified or proprietary.
Related Government Programs
- Defense Microelectronics Activity Contracts
- Advanced Technology Development Contracts
- Northrop Grumman Defense Contracts
- Panther System Modernization
- Jaguar System Modernization
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Advanced technology development may encounter unforeseen technical challenges.
- Limited public data on specific performance metrics hinders independent value assessment.
Tags
defense, department-of-defense, northrop-grumman, engineering-services, microelectronics, advanced-technology, cost-plus-fixed-fee, full-and-open-competition, delivery-order, maryland, systems-engineering
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ENGINEERING SERVICES: PANTHER AND JAGUAR: PHASE 1 - STUDY, ANALYZE, AND DESIGN ADVANCED TECHNOLOGY MICROELECTRONIC AND SOFTWARE SOLUTIONS TO ADD CAPABILITY AND IMPROVE PERFORMANCE OF THE MICROELECTRONICS-BASED PANTHER AND JAGUAR SYSTEMS.
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 Microelectronics Activity).
What is the total obligated amount?
The obligated amount is $61.1 million.
What is the period of performance?
Start: 2019-03-28. End: 2022-04-30.
What is Northrop Grumman's track record with similar advanced microelectronics contracts for the Department of Defense?
Northrop Grumman has a long-standing and extensive track record with the Department of Defense, frequently securing large contracts for complex defense systems, including those involving advanced electronics and software. They are a prime contractor on numerous programs requiring sophisticated engineering and technological integration. While specific details on 'Panther' and 'Jaguar' system contracts are not provided, their history suggests a capability to manage large-scale, high-technology development projects. Past performance reviews and contract awards databases would offer more granular insights into their success rates, on-time delivery, and budget adherence on comparable projects.
How does the $61.1 million contract value compare to similar engineering services for advanced defense systems?
Benchmarking the $61.1 million value for 'Engineering Services: Panther and Jaguar: Phase 1' is challenging without more specific details on the scope of work and deliverables. However, for advanced technology development and microelectronics solutions within the defense sector, this figure appears to be within a moderate range. Large-scale system integration and advanced R&D projects can easily run into hundreds of millions or even billions of dollars. This contract's value suggests a focused effort on a specific phase or set of capabilities for the Panther and Jaguar systems, rather than a full system development lifecycle.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?
The primary risk with a CPFF contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a profit incentive. If the project scope expands or unforeseen technical challenges arise, costs can escalate beyond initial estimates. Effective oversight, rigorous cost tracking, and clear definition of work are crucial to mitigate this risk. The government bears the risk of cost increases, while the contractor is incentivized to control costs to protect their fixed fee.
How effective is the 'full and open competition' approach likely to be for securing advanced microelectronics solutions?
Full and open competition is generally the most effective method for the government to solicit a wide range of innovative solutions and achieve competitive pricing, especially for complex technological requirements. For advanced microelectronics, this approach allows specialized firms, including large defense contractors and potentially niche technology providers, to compete. The effectiveness hinges on the clarity of the solicitation (e.g., performance work statement) and the evaluation criteria. A well-defined competition can drive down costs and ensure the government receives the best available technology, though the highly specialized nature of microelectronics might limit the pool of truly capable bidders.
What is the historical spending trend for engineering services related to microelectronics within the Department of Defense?
Historical spending on engineering services for microelectronics within the Department of Defense has generally been substantial and on an upward trend, driven by the need for technological superiority and modernization of defense systems. The increasing complexity of threats and the integration of AI, cyber capabilities, and advanced sensors necessitate continuous investment in cutting-edge microelectronic solutions. While specific figures for 'Panther' and 'Jaguar' systems are not detailed here, overall DoD spending on R&D, systems engineering, and specialized technology development, including microelectronics, represents a significant portion of its budget, reflecting the critical importance of this domain.
What are the potential performance implications for the Panther and Jaguar systems based on this contract?
This contract aims to 'add capability and improve performance' of the Panther and Jaguar systems through advanced technology microelectronic and software solutions. The specific improvements are not detailed, but typically such enhancements could lead to increased processing speed, reduced power consumption, enhanced security features, greater reliability, or the integration of new functionalities. The success of these improvements will depend on the technical execution by Northrop Grumman and the effective integration of the new solutions into the existing systems. The contract's focus on study, analysis, and design suggests this is an initial phase, with subsequent phases likely addressing implementation and testing.
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: $61,081,093
Exercised Options: $61,081,093
Current Obligation: $61,081,093
Actual Outlays: $8,883,075
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ072716D0004
IDV Type: IDC
Timeline
Start Date: 2019-03-28
Current End Date: 2022-04-30
Potential End Date: 2022-04-30 00:00:00
Last Modified: 2022-04-22
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