Northrop Grumman awarded $85.7M for C-RAM Integrated Data Analysis Refinement, a critical defense engineering service

Contract Overview

Contract Amount: $85,681,560 ($85.7M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2020-06-09

End Date: 2021-11-30

Contract Duration: 539 days

Daily Burn Rate: $159.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING SERVICES: ADVANCE POST LEGACY - C-RAM INTEGRATED DATA ANALYSIS REFINEMENT (APL-CIDAR)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35896

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $85.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ENGINEERING SERVICES: ADVANCE POST LEGACY - C-RAM INTEGRATED DATA ANALYSIS REFINEMENT (APL-CIDAR) Key points: 1. Contract value of $85.7M for engineering services indicates a significant investment in advanced defense capabilities. 2. The 'FULL AND OPEN COMPETITION' suggests a robust bidding process, potentially leading to competitive pricing. 3. Risk indicators are moderate, given the Cost Plus Fixed Fee (CPFF) contract type, which can allow for cost overruns. 4. Performance context is tied to the Defense Microelectronics Activity, highlighting a specialized area within defense. 5. Sector positioning is within advanced defense engineering, focusing on data analysis for critical systems like C-RAM. 6. The contract duration of 539 days suggests a focused, project-based effort rather than long-term sustainment.

Value Assessment

Rating: fair

The contract value of $85.7 million for engineering services is substantial. Benchmarking against similar advanced data analysis and engineering contracts within the defense sector is challenging without more specific service details. The Cost Plus Fixed Fee (CPFF) structure, while common for complex R&D, carries inherent risks of cost escalation compared to fixed-price contracts. The awarded amount appears to be within a reasonable range for specialized engineering support of this nature, but a definitive value-for-money assessment requires deeper insight into the scope of work and deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment. A competitive bidding process is expected to drive down costs and encourage innovation as contractors vie for the award. The level of competition directly influences price discovery and the government's ability to secure the best value.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that taxpayer funds are used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Defense Microelectronics Activity, receiving advanced engineering and data analysis. Services delivered include refinement of integrated data analysis for Counter-Rocket, Artillery, and Mortar (C-RAM) systems. The geographic impact is likely concentrated within defense installations or research facilities involved with C-RAM systems. Workforce implications include specialized engineering and data analysis roles, potentially requiring highly skilled personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type introduces potential for cost overruns if not managed diligently.
The specific nature of 'ADVANCE POST LEGACY - C-RAM INTEGRATED DATA ANALYSIS REFINEMENT' suggests a complex and potentially evolving technical requirement.
Limited public information on the specific deliverables makes it difficult to fully assess performance and value.
The contract duration of 539 days, while project-specific, requires ongoing oversight to ensure timely completion and adherence to scope.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair procurement process.
Northrop Grumman is a large, established defense contractor with a track record in complex systems integration.
The focus on C-RAM systems indicates support for critical force protection capabilities.
The contract aims to refine data analysis, which is crucial for improving the effectiveness of defense systems.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced defense technologies. The market for defense engineering services is substantial, driven by continuous modernization and the need for sophisticated data analysis to enhance system performance and threat detection. Comparable spending benchmarks would typically involve other large-scale engineering and system integration contracts for defense platforms. The focus on C-RAM data analysis places it within a niche but critical segment of defense technology.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). As a large contract awarded to a major defense contractor, there may be subcontracting opportunities for small businesses, but this is not explicitly detailed in the provided information. The impact on the small business ecosystem would depend on whether Northrop Grumman actively seeks small business subcontractors for specialized components or services related to this project.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Microelectronics Activity. Accountability measures are typically managed through contract performance reviews, milestone tracking, and financial reporting inherent in CPFF contracts. Transparency is often limited for defense-related contracts due to national security considerations, but contract awards and basic details are usually publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

C-RAM Systems Development
Defense Data Analytics Programs
Advanced Engineering Services
Department of Defense IT and Engineering Support
Counter-Rocket, Artillery, and Mortar Systems

Risk Flags

Cost Overrun Risk (CPFF)
Technical Complexity
Limited Public Deliverable Detail

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $85.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ENGINEERING SERVICES: ADVANCE POST LEGACY - C-RAM INTEGRATED DATA ANALYSIS REFINEMENT (APL-CIDAR)

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 $85.7 million.

What is the period of performance?

Start: 2020-06-09. End: 2021-11-30.

What is Northrop Grumman's track record with similar defense engineering and data analysis contracts?

Northrop Grumman Systems Corporation is a major aerospace and defense contractor with extensive experience in complex engineering, system integration, and data analysis for various defense applications. They have a long history of supporting the Department of Defense across numerous programs, including missile defense, C4ISR systems, and advanced analytics. Their track record includes numerous large-scale contracts for research, development, and sustainment of critical defense technologies. While specific details on past C-RAM data analysis refinement projects are not publicly itemized, their broad capabilities in areas like radar systems, signal processing, and artificial intelligence for defense are well-established, suggesting a strong capacity to execute this contract.

How does the $85.7 million contract value compare to similar C-RAM related engineering efforts?

Directly comparing the $85.7 million value for 'C-RAM Integrated Data Analysis Refinement' to other C-RAM related engineering efforts is challenging without granular data on the scope of work for comparable contracts. However, the value is substantial and reflects the complexity and criticality of enhancing data analysis for such a vital defense system. Investments in advanced defense systems, particularly those involving sophisticated data processing for threat detection and response, often run into tens or hundreds of millions of dollars. This contract appears to be a significant, focused investment in the analytical capabilities supporting C-RAM, rather than the procurement of the C-RAM hardware itself, which would likely involve much larger figures.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services like data analysis refinement is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. If the project's costs exceed initial estimates, the government bears the burden of these increased expenses, provided they are allowable. This can lead to the final contract value being significantly higher than initially projected. Effective oversight, stringent cost controls, and clear definition of 'allowable costs' are crucial to mitigate this risk and ensure the government receives good value. The fixed fee component provides some incentive for the contractor to manage costs efficiently to protect their profit margin.

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, even for specialized defense engineering services. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. For specialized services, it ensures that the government can identify and select the contractor with the best technical capabilities and most competitive pricing. While specialized knowledge is required, a broad competition can still attract niche players or larger firms with relevant expertise. The effectiveness hinges on clear solicitation requirements and a robust evaluation process that balances technical merit with cost.

What is the historical spending trend for engineering services related to C-RAM systems within the Department of Defense?

Historical spending trends for engineering services specifically tied to C-RAM systems are not readily available as a distinct public category. However, overall spending on defense modernization, advanced analytics, and C-RAM programs has been significant and generally increasing, particularly in response to evolving geopolitical threats. Contracts for C-RAM systems themselves, including development, procurement, and sustainment, represent billions of dollars. Engineering services, like the data analysis refinement awarded here, are a crucial component of these larger programs. Spending in this area is likely influenced by threat assessments, technological advancements in detection and countermeasures, and strategic defense priorities, indicating a sustained need for related engineering support.

What are the potential performance implications of refining integrated data analysis for C-RAM?

Refining integrated data analysis for C-RAM systems has significant potential performance implications. Improved data analysis can lead to more accurate detection of incoming threats (rockets, artillery, mortars), reducing false positives and improving response times. It can enhance the system's ability to discriminate between threats and decoys, optimize engagement strategies, and provide better post-engagement assessments. Furthermore, refined data analysis can contribute to predictive maintenance, identify patterns in enemy tactics, and inform future system upgrades or development. Ultimately, this work aims to increase the effectiveness and efficiency of C-RAM defenses, enhancing force protection capabilities.

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: $85,681,560

Exercised Options: $85,681,560

Current Obligation: $85,681,560

Subaward Activity

Number of Subawards: 71

Total Subaward Amount: $124,399,048

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ072716D0004

IDV Type: IDC

Timeline