DoD Awards Northrop Grumman $113M for Radar System Modifications Under Full and Open Competition
Contract Overview
Contract Amount: $11,341,572 ($11.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-06-01
End Date: 2026-01-31
Contract Duration: 1,705 days
Daily Burn Rate: $6.7K/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 STUDY, ANALYZE, DESIGN, BUILD, INTEGRATE AND TEST RADAR SYSTEM MODIFICATIONS
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $11.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THE PURPOSE OF THIS TASK IS TO STUDY, ANALYZE, DESIGN, BUILD, INTEGRATE AND TEST RADAR SYSTEM MODIFICATIONS Key points: 1. Significant contract value for complex system upgrades. 2. Full and open competition suggests potential for competitive pricing. 3. Cost-plus fixed fee structure may incentivize cost overruns. 4. Focus on radar system modifications indicates critical defense capabilities.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to higher costs compared to fixed-price contracts if not managed carefully. The award amount of $113.4M for engineering services over a 5-year period needs further benchmarking against similar radar system modification projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery and potentially achieving a fair market price. However, the CPFF structure requires robust oversight to ensure costs remain reasonable.
Taxpayer Impact: Taxpayer funds are being used for critical defense system upgrades. The competitive award process aims to ensure value, but the CPFF structure necessitates vigilance against potential cost creep.
Public Impact
Enhances national defense capabilities through advanced radar technology. Supports technological superiority in military surveillance and targeting. Potential for job creation within the defense sector and related industries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (5 years)
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition
- Awarded to a major defense contractor
- Addresses critical defense system needs
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to defense electronics and radar systems. Spending in this area is crucial for maintaining technological advantage but can be subject to significant cost fluctuations due to R&D intensity and specialized requirements.
Small Business Impact
The data indicates the prime contractor is Northrop Grumman Systems Corporation, a large business. There is no information provided on subcontracting plans for small businesses, which is a missed opportunity for broader economic impact.
Oversight & Accountability
The Department of Defense, through the Defense Microelectronics Activity, is the awarding agency. Robust oversight will be critical, especially given the CPFF contract type, to monitor costs, schedule, and performance throughout the contract's duration.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Microelectronics Activity Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Long contract duration
- Potential for scope creep
- Reliance on contractor's cost reporting
- Complexity of radar system integration
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THE PURPOSE OF THIS TASK IS TO STUDY, ANALYZE, DESIGN, BUILD, INTEGRATE AND TEST RADAR SYSTEM MODIFICATIONS
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 $11.3 million.
What is the period of performance?
Start: 2021-06-01. End: 2026-01-31.
What are the specific performance metrics and deliverables for these radar system modifications, and how will they be measured to ensure value for money?
The provided data lacks specific performance metrics and deliverables. A thorough review of the contract's Statement of Work (SOW) is necessary to identify these details. Effective oversight would involve tracking progress against defined milestones and ensuring the modifications meet or exceed the intended operational capabilities and technological advancements.
How will the Department of Defense mitigate the inherent risks of cost escalation associated with a Cost Plus Fixed Fee (CPFF) contract over a 5-year period?
Mitigation strategies for CPFF contracts typically involve stringent cost monitoring, regular audits, and clear definition of allowable costs. The Defense Microelectronics Activity should implement robust financial controls, require detailed cost breakdowns, and conduct frequent reviews to ensure costs are reasonable and allocable to the contract objectives, preventing unnecessary escalation.
What is the expected impact of these radar system modifications on the operational effectiveness and technological readiness of the relevant defense platforms?
These modifications are expected to enhance the capabilities of existing radar systems, potentially improving detection range, accuracy, and resistance to countermeasures. This directly contributes to the operational effectiveness and technological readiness of defense platforms by ensuring they remain competitive and capable in evolving threat environments.
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: $11,341,572
Exercised Options: $11,341,572
Current Obligation: $11,341,572
Actual Outlays: $134,350
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $1,134,486
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: 2021-06-01
Current End Date: 2026-01-31
Potential End Date: 2026-01-31 00:00:00
Last Modified: 2025-12-16
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)