DoD Awards Northrop Grumman $22.4M for Counter-UAS Network Infrastructure
Contract Overview
Contract Amount: $22,403,924 ($22.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-04-17
End Date: 2025-07-31
Contract Duration: 836 days
Daily Burn Rate: $26.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SERVICES: THE PURPOSE OF THIS TASK IS TO DEVELOP AND TAILOR NETWORK COMMUNICATION INFRASTRUCTURE TO DIVISIONAL SHORT RANGE AIR DEFENSE INITIATIVES TO DEFEAT LOW, SLOW, SMALL, UASS.
Place of Performance
Location: HUNTSVILLE, WALKER County, TEXAS, 77340
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $22.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ENGINEERING SERVICES: THE PURPOSE OF THIS TASK IS TO DEVELOP AND TAILOR NETWORK COMMUNICATION INFRASTRUCTURE TO DIVISIONAL SHORT RANGE AIR DEFENSE INITIATIVES TO DEFEAT LOW, SLOW, SMALL, UASS. Key points: 1. Significant investment in critical defense technology for countering small UAS threats. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, given the specialized nature of the technology and fixed-fee contract type. 4. Spending falls within the Engineering Services sector, with a benchmark of $26.8M.
Value Assessment
Rating: good
The contract's cost-plus-fixed-fee structure allows for flexibility while managing costs. The award amount is reasonable for specialized engineering services of this nature.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method is expected to yield a fair price for the services rendered.
Taxpayer Impact: Taxpayer funds are being used for advanced defense capabilities, aiming to enhance national security against emerging threats.
Public Impact
Enhances national security by developing technology to counter drone threats. Supports innovation in defense microelectronics and network infrastructure. Potential for follow-on contracts as the technology is developed and deployed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can sometimes lead to higher costs if not closely managed.
- Reliance on a single prime contractor for critical technology development.
Positive Signals
- Addresses a critical and evolving national security threat.
- Awarded through full and open competition.
- Clear objective for developing specific defense capabilities.
Sector Analysis
This contract falls under Engineering Services, a sector that supports various defense initiatives. The benchmark for similar contracts is approximately $26.8 million, making this award slightly above average but justifiable for specialized development.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award, which is common for prime contracts of this magnitude.
Oversight & Accountability
The Department of Defense and its Defense Microelectronics Activity are responsible for oversight. The fixed-fee component provides some cost control, but ongoing monitoring will be crucial for effective accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Microelectronics Activity Programs
Risk Flags
- Potential for cost overruns in cost-plus-fixed-fee contracts.
- Dependency on a single large contractor for critical technology.
- Rapidly evolving threat landscape may require continuous adaptation.
- Integration complexity with diverse existing defense systems.
Tags
engineering-services, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ENGINEERING SERVICES: THE PURPOSE OF THIS TASK IS TO DEVELOP AND TAILOR NETWORK COMMUNICATION INFRASTRUCTURE TO DIVISIONAL SHORT RANGE AIR DEFENSE INITIATIVES TO DEFEAT LOW, SLOW, SMALL, UASS.
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 $22.4 million.
What is the period of performance?
Start: 2023-04-17. End: 2025-07-31.
What is the projected return on investment for this network infrastructure in terms of threat mitigation effectiveness?
The return on investment is difficult to quantify precisely without specific performance metrics. However, the development of tailored network communication infrastructure to defeat low, slow, small UAS directly addresses a growing and significant threat. Effective mitigation of these threats can prevent costly damage, loss of life, and disruption of operations, thereby providing a substantial, albeit indirect, return on investment in terms of enhanced security and operational resilience.
What are the key technical risks associated with developing this specialized network communication infrastructure, and how are they being managed?
Key technical risks include integration challenges with existing systems, achieving the required low-latency communication for real-time threat detection and response, and ensuring the infrastructure's resilience against electronic warfare. The cost-plus-fixed-fee contract allows for flexibility in addressing unforeseen technical hurdles. Northrop Grumman's expertise in aerospace and defense systems, coupled with oversight from the Defense Microelectronics Activity, aims to mitigate these risks through rigorous testing and iterative development.
How will the effectiveness of this network communication infrastructure be measured post-deployment to ensure it meets the stated objectives?
Effectiveness will likely be measured through a combination of operational testing and evaluation (OT&E) events, performance-based metrics, and user feedback. Specific metrics could include detection rates of target UAS, response times, system reliability under various environmental conditions, and successful integration with command and control systems. The Defense Microelectronics Activity will be responsible for defining and tracking these metrics throughout the development and deployment phases.
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: $22,403,924
Exercised Options: $22,403,924
Current Obligation: $22,403,924
Subaward Activity
Number of Subawards: 37
Total Subaward Amount: $7,635,729
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: 2023-04-17
Current End Date: 2025-07-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2025-04-15
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