DoD's $213M Space Solar Power Contract Awarded to Northrop Grumman for Engineering Services
Contract Overview
Contract Amount: $213,055,740 ($213.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2019-07-25
End Date: 2025-01-14
Contract Duration: 2,000 days
Daily Burn Rate: $106.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SERVICES: SPACE SOLAR POWER INCREMENTAL DEMONSTRATION&RESEARCH (SSPIDR) PROJECT
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $213.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ENGINEERING SERVICES: SPACE SOLAR POWER INCREMENTAL DEMONSTRATION&RESEARCH (SSPIDR) PROJECT Key points: 1. Significant investment in advanced space technology. 2. Sole awardee is a major defense contractor. 3. Potential for long-term technological advancement. 4. Focus on research and development in a critical sector.
Value Assessment
Rating: fair
The contract value of $213,055,740 is substantial for engineering services. Benchmarking against similar large-scale R&D projects is difficult without more specific cost breakdowns. The Cost Plus Fixed Fee structure allows for flexibility but requires careful oversight to manage costs.
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. However, the specific details of the competition and how price was determined are not provided. The award type is a delivery order, indicating it's part of a larger contract vehicle.
Taxpayer Impact: Taxpayer funds are being invested in a high-priority defense project with potential long-term strategic benefits. The cost-effectiveness will depend on the successful development and deployment of the technology.
Public Impact
Advancement of space-based solar power capabilities. Potential for dual-use applications in civilian energy sectors. Contribution to national security through enhanced space infrastructure. Job creation in engineering and aerospace fields. Long-term implications for energy independence and sustainability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns due to R&D complexity
- Technological feasibility risks
- Long development timeline
- Limited visibility into specific cost drivers
Positive Signals
- Strategic investment in cutting-edge technology
- Potential for significant technological breakthroughs
- Experienced contractor with relevant expertise
- Clear project objectives for space solar power
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting advanced defense technology. Spending benchmarks for large-scale, R&D-intensive space projects are highly variable, but $213 million represents a significant commitment to a novel capability.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of specific small business subcontracting goals or participation in this data, suggesting a limited direct impact on small businesses for this prime award.
Oversight & Accountability
Oversight will be crucial given the Cost Plus Fixed Fee structure and the R&D nature of the project. The Defense Contract Management Agency (DCMA) is responsible for oversight, ensuring adherence to contract terms and managing performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- High R&D complexity
- Long-term project duration
- Potential for cost overruns
- Technological uncertainty
- Reliance on a single prime contractor
Tags
engineering-services, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $213.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ENGINEERING SERVICES: SPACE SOLAR POWER INCREMENTAL DEMONSTRATION&RESEARCH (SSPIDR) PROJECT
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 $213.1 million.
What is the period of performance?
Start: 2019-07-25. End: 2025-01-14.
What is the projected return on investment for the Space Solar Power Incremental Demonstration & Research project?
The return on investment for the SSPIDR project is not explicitly defined in the provided data. As a research and demonstration initiative, its primary value lies in technological advancement and future strategic capabilities rather than immediate financial returns. The long-term benefits are expected to be in enhanced national security and potential future energy solutions, which are difficult to quantify financially at this stage.
What are the primary risks associated with the technological development of space solar power?
Key risks include the technical feasibility of efficiently collecting, converting, and transmitting solar energy from space to Earth. Challenges in developing lightweight, durable, and cost-effective space-based solar arrays, as well as ensuring reliable power transmission and reception, are significant. Furthermore, the harsh space environment poses risks to component longevity and operational integrity, potentially leading to delays and increased costs.
How effective is the Cost Plus Fixed Fee contract structure for managing R&D projects like SSPIDR?
The Cost Plus Fixed Fee (CPFF) structure is often used for R&D projects where the scope and costs are uncertain. It provides flexibility for the contractor to explore solutions while incentivizing them to control costs through a fixed fee. However, it requires robust government oversight to prevent cost overruns and ensure the contractor remains focused on achieving project objectives efficiently. Effectiveness hinges on strong contract management and clear performance metrics.
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: $213,450,639
Exercised Options: $213,450,639
Current Obligation: $213,055,740
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $1,994,233
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: 2019-07-25
Current End Date: 2025-01-14
Potential End Date: 2025-03-03 00:00:00
Last Modified: 2025-04-16
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