DoD Awards Northrop Grumman $50.5M for Tactical Network Kits to Enhance Mobile and Fixed Site Operations
Contract Overview
Contract Amount: $50,550,412 ($50.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-03-31
End Date: 2024-07-31
Contract Duration: 122 days
Daily Burn Rate: $414.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CONTRACTUAL ENGINEERING TASK (CET) 23-308 TASK TO DESIGN, TEST, BUILD AND DELIVER NETWORK COMMUNICATIONS KITS TO SUPPORT THE INTEGRATION OF MOBILE LIDS AND FIXED SITE LIDS TO SUPPORT TACTICAL OPERATIONS AT DIVISION
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20194
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $50.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CONTRACTUAL ENGINEERING TASK (CET) 23-308 TASK TO DESIGN, TEST, BUILD AND DELIVER NETWORK COMMUNICATIONS KITS TO SUPPORT THE INTEGRATION OF MOBILE LIDS AND FIXED SITE LIDS TO SUPPORT TACTICAL OPERATIONS AT DIVISION Key points: 1. The contract focuses on critical network communications for tactical operations, supporting mobile and fixed sites. 2. Northrop Grumman, a major defense contractor, secured this delivery order. 3. The contract is for engineering services related to designing, testing, building, and delivering specialized kits. 4. This award aims to improve the integration of LIDS (likely a specific system) for enhanced operational capabilities.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can allow for cost overruns if not managed carefully. However, the fixed fee component provides some cost certainty. Benchmarking against similar engineering services contracts for tactical communications equipment is recommended.
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. This method generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: The competitive award process is expected to yield a fair price for the taxpayer, ensuring value for the funds expended on these critical communication kits.
Public Impact
Enhances tactical communication capabilities for military operations. Supports the integration of advanced mobile and fixed site systems. Aims to improve operational efficiency and effectiveness in the field. Invests in critical infrastructure for national defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Potential for scope creep in design, test, build, and deliver phases.
- Dependence on a single large contractor for critical components.
Positive Signals
- Awarded under full and open competition.
- Supports critical tactical operational needs.
- Clear delivery order with defined end date.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector vital for defense modernization. Spending in this area is often driven by the need for advanced technological solutions to maintain military superiority.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business subcontracting participation in the provided data.
Oversight & Accountability
The contract is a delivery order under a larger agreement, suggesting existing oversight mechanisms. However, the Cost Plus Fixed Fee structure necessitates robust government oversight to ensure cost control and adherence to scope.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Microelectronics Activity Programs
Risk Flags
- Cost overrun potential with CPFF contract.
- Integration complexity and technical risks.
- Dependence on a single large prime contractor.
- Potential for schedule delays if testing or design encounters issues.
- Cybersecurity risks associated with network communications.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $50.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CONTRACTUAL ENGINEERING TASK (CET) 23-308 TASK TO DESIGN, TEST, BUILD AND DELIVER NETWORK COMMUNICATIONS KITS TO SUPPORT THE INTEGRATION OF MOBILE LIDS AND FIXED SITE LIDS TO SUPPORT TACTICAL OPERATIONS AT DIVISION
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 $50.6 million.
What is the period of performance?
Start: 2024-03-31. End: 2024-07-31.
What specific performance metrics will be used to evaluate the success of the network communications kits?
The success of the network communications kits will likely be evaluated based on technical performance specifications outlined in the contract. This could include metrics such as data throughput, signal reliability, latency, interoperability with existing systems, and durability under tactical conditions. The government will monitor testing phases and operational deployment to ensure the kits meet or exceed these defined requirements.
What are the potential risks associated with the integration of mobile and fixed site LIDS?
Risks in integrating mobile and fixed site LIDS include compatibility issues between different hardware and software components, potential security vulnerabilities introduced during integration, and challenges in ensuring seamless data flow and communication across diverse operational environments. Inadequate testing or unforeseen technical hurdles could lead to delays and increased costs.
How will the effectiveness of these kits in supporting tactical operations be measured post-delivery?
Effectiveness will be measured through operational feedback from deployed units, performance monitoring during exercises and real-world missions, and post-deployment reviews. Key indicators might include improved communication uptime, reduced communication failures, enhanced situational awareness, and the ability of the kits to withstand harsh environmental conditions and operational demands.
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: $50,550,412
Exercised Options: $50,550,412
Current Obligation: $50,550,412
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $7,831,175
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: 2024-03-31
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 00:00:00
Last Modified: 2024-07-22
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