Northrop Grumman awarded $19.3M for advanced microelectronics weapon systems engineering
Contract Overview
Contract Amount: $19,267,196 ($19.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2019-10-24
End Date: 2021-10-31
Contract Duration: 738 days
Daily Burn Rate: $26.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SERVICES TO ANALYZE, DESIGN, DEVELOP, INTEGRATE, BUILD, TEST AND VALIDATE ADVANCED TECHNOLOGY SOLUTIONS MOBILE MICROELECTRONICS-BASED NON-KINETIC WEAPON SYSTEMS
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $19.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ENGINEERING SERVICES TO ANALYZE, DESIGN, DEVELOP, INTEGRATE, BUILD, TEST AND VALIDATE ADVANCED TECHNOLOGY SOLUTIONS MOBILE MICROELECTRONICS-BASED NON-KINETIC WEAPON SYSTEMS Key points: 1. Contract focuses on high-tech non-kinetic weapon systems, indicating a strategic investment in advanced defense capabilities. 2. The engineering services are critical for the development and validation of complex mobile microelectronics. 3. Full and open competition suggests a robust market for these specialized services. 4. The contract duration of 738 days points to a significant, multi-phase project. 5. Cost Plus Fixed Fee pricing structure allows for flexibility while managing project costs. 6. The award to Northrop Grumman, a major defense contractor, aligns with industry consolidation trends.
Value Assessment
Rating: good
The contract value of $19.3 million for specialized engineering services appears reasonable given the complexity of advanced technology solutions and mobile microelectronics. Benchmarking against similar contracts for defense system development, this amount falls within expected ranges for R&D and integration projects of this nature. The Cost Plus Fixed Fee (CPFF) structure, while allowing for cost overruns, is common for innovative projects where scope may evolve. Further analysis would require detailed cost breakdowns and comparison to specific project milestones.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the nature of the competition suggests a healthy market for advanced engineering services in the defense sector. This approach is intended to foster price discovery and ensure the government receives competitive proposals.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging innovation among a wider pool of contractors.
Public Impact
The Department of Defense benefits from the development of advanced non-kinetic weapon systems, enhancing national security capabilities. Services delivered include analysis, design, development, integration, building, testing, and validation of cutting-edge technology. The geographic impact is primarily within Maryland, where the contractor is located, but the technology's application is national. Workforce implications include highly skilled engineers and technicians specializing in microelectronics and advanced weapon systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts for complex R&D.
- Reliance on a single large contractor for critical advanced technology development.
- The specialized nature of the technology may limit future competition if intellectual property becomes concentrated.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Northrop Grumman has a strong track record in defense contracting and advanced technology.
- The contract addresses a critical need for advanced, non-kinetic weapon systems.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting advanced defense technology development. The market for defense engineering services is substantial, driven by continuous innovation and modernization efforts by military branches. Comparable spending benchmarks would include other contracts for system design, integration, and R&D for advanced weapon platforms, often involving significant investment in specialized fields like microelectronics and non-kinetic effects.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large defense contractor, Northrop Grumman. The impact on the small business ecosystem would depend on whether Northrop Grumman engages small businesses as subcontractors for specialized components or services, which is not detailed in the provided information.
Oversight & Accountability
Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded within the Cost Plus Fixed Fee contract terms, requiring detailed reporting and adherence to milestones. Transparency is generally maintained through contract award databases, though specific project details and cost breakdowns may be sensitive.
Related Government Programs
- Advanced Weapon Systems Development
- Microelectronics Research and Development
- Non-Kinetic Warfare Technologies
- Defense Engineering Services
- Mobile Electronic Systems
Risk Flags
- Cost Overrun Risk (CPFF)
- Technology Obsolescence
- Limited Competition Pool for Highly Specialized Tech
Tags
defense, department-of-defense, northrop-grumman-systems-corporation, engineering-services, advanced-technology, microelectronics, weapon-systems, non-kinetic, full-and-open-competition, cost-plus-fixed-fee, delivery-order, maryland
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ENGINEERING SERVICES TO ANALYZE, DESIGN, DEVELOP, INTEGRATE, BUILD, TEST AND VALIDATE ADVANCED TECHNOLOGY SOLUTIONS MOBILE MICROELECTRONICS-BASED NON-KINETIC WEAPON 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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $19.3 million.
What is the period of performance?
Start: 2019-10-24. End: 2021-10-31.
What is Northrop Grumman's track record with similar advanced technology defense contracts?
Northrop Grumman Systems Corporation is a major aerospace and defense contractor with extensive experience in developing complex systems for the U.S. military and its allies. They have a well-established track record in areas such as electronic warfare, integrated air and missile defense, and advanced avionics. Their portfolio includes numerous contracts involving research, development, integration, and production of sophisticated defense technologies, often incorporating cutting-edge microelectronics and software solutions. This specific contract for mobile microelectronics-based non-kinetic weapon systems aligns with their core competencies and historical performance in delivering high-technology solutions for national security.
How does the $19.3 million value compare to similar engineering services contracts for advanced weapon systems?
The $19.3 million contract value for engineering services related to advanced technology solutions and mobile microelectronics-based non-kinetic weapon systems appears to be within a reasonable range for specialized R&D and system integration projects. Contracts for developing novel defense technologies can vary significantly based on complexity, scope, and duration. For instance, contracts involving the design, prototyping, and testing of advanced electronic warfare systems or directed energy components can easily reach tens of millions of dollars. Given the focus on microelectronics and non-kinetic capabilities, which are areas of significant technological advancement and investment, this award suggests a project of moderate scale and complexity within the broader defense R&D landscape.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure, like the one awarded to Northrop Grumman, is the potential for cost overruns. While the 'fixed fee' component provides the contractor with a guaranteed profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the project encounters unforeseen technical challenges, scope creep, or inefficiencies, the total cost to the government can exceed initial estimates. This necessitates robust oversight and diligent cost tracking by the contracting agency to ensure that costs remain reasonable and that the contractor exercises prudent financial management throughout the contract performance period.
How effective is full and open competition in ensuring value for money for specialized defense engineering services?
Full and open competition is generally considered the most effective method for ensuring value for money, especially for specialized defense engineering services. By allowing all responsible sources to submit bids, the government can leverage market forces to obtain competitive pricing and innovative solutions. This broad competition encourages contractors to propose their best technical approaches and most cost-effective strategies to win the contract. While specialized services may have a limited pool of qualified bidders, a full and open approach maximizes the chances of identifying the most capable and competitively priced offeror, thereby enhancing the likelihood of achieving optimal value for taxpayer dollars compared to sole-source or limited competition scenarios.
What is the historical spending trend for engineering services related to advanced weapon systems within the Department of Defense?
Historical spending trends within the Department of Defense (DoD) for engineering services related to advanced weapon systems show a consistent and significant investment. The DoD allocates substantial resources annually towards research, development, testing, and evaluation (RDT&E) of next-generation capabilities, including advanced weapon platforms, electronic warfare, cyber capabilities, and directed energy systems. Spending in this category has generally increased over the past decade, driven by evolving geopolitical threats and the need to maintain technological superiority. Contracts for specialized engineering services, such as those involving microelectronics and non-kinetic effects, represent a critical component of this overall RDT&E budget, reflecting a strategic priority for innovation and modernization.
What are the implications of this contract award for the broader defense industrial base?
This contract award to Northrop Grumman for advanced microelectronics-based non-kinetic weapon systems has several implications for the broader defense industrial base. Firstly, it signifies continued investment in high-technology defense capabilities, potentially spurring innovation and development within specialized sectors like microelectronics and directed energy. Secondly, as a major prime contractor, Northrop Grumman's involvement often leads to subcontracting opportunities for other firms, including small businesses, thereby distributing work and fostering growth across the supply chain. Lastly, such awards can influence market dynamics, potentially consolidating expertise within large prime contractors while also highlighting the importance of a robust ecosystem of suppliers and technology partners capable of supporting these complex programs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
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: $20,663,609
Exercised Options: $20,663,609
Current Obligation: $19,267,196
Subaward Activity
Number of Subawards: 50
Total Subaward Amount: $8,791,696
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: 2019-10-24
Current End Date: 2021-10-31
Potential End Date: 2022-04-27 00:00:00
Last Modified: 2025-03-06
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