DoD's $29.7M Northrop Grumman Contract for Advanced Microelectronic Circuit Card Development
Contract Overview
Contract Amount: $29,727,157 ($29.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-21
End Date: 2026-09-30
Contract Duration: 1,105 days
Daily Burn Rate: $26.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRED PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR ENGINEERING SERVICES TO ANALYZE, DESIGN, AND DEVELOP AN ENGINEERING EVALUATION PROTOTYPE RELATED CIRCUIT CARD ASSEMBLIES.
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $29.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRED PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR ENGINEERING SERVICES TO ANALYZE, DESIGN, AND DEVELOP AN ENGINEERING EVALUATION PROTOTYPE RELATED CIRCUIT CARD ASSEMBLIES. Key points: 1. Contract focuses on specialized engineering services for prototype circuit card assemblies. 2. Northrop Grumman, a major defense contractor, is the awardee. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans over three years, indicating a significant project duration.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. However, the fixed fee component provides some cost control. Benchmarking against similar engineering services contracts is needed for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.
Public Impact
Enhances national defense capabilities through advanced microelectronics. Supports technological innovation in critical defense systems. Potential for spin-off technologies benefiting the commercial sector. Creates high-skilled jobs in engineering and development.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Long project duration may introduce risks related to technological obsolescence.
Positive Signals
- Awarded under full and open competition.
- Significant investment in advanced technology.
- Experienced prime contractor.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense microelectronics. Spending in this area is critical for maintaining technological superiority, with benchmarks varying widely based on project complexity and duration.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business subcontracting in the provided data, which could be an area for future analysis.
Oversight & Accountability
The contract was awarded by the Defense Microelectronics Activity, suggesting specialized oversight. The Cost Plus Fixed Fee structure necessitates robust financial oversight to ensure cost efficiency and prevent overruns.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Microelectronics Activity Programs
Risk Flags
- Cost overrun potential with CPFF.
- Technological obsolescence over project duration.
- Limited visibility into small business participation.
- Dependency on a single large prime contractor.
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 $29.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRED PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR ENGINEERING SERVICES TO ANALYZE, DESIGN, AND DEVELOP AN ENGINEERING EVALUATION PROTOTYPE RELATED CIRCUIT CARD ASSEMBLIES.
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 $29.7 million.
What is the period of performance?
Start: 2023-09-21. End: 2026-09-30.
What specific technological advancements are expected from this prototype development, and how will they be measured?
The contract aims to analyze, design, and develop an engineering evaluation prototype for circuit card assemblies. Specific advancements are not detailed but likely relate to improved performance, miniaturization, or specialized functionality for defense applications. Success metrics would typically involve meeting defined technical specifications, achieving performance targets in testing, and demonstrating the feasibility of the design for future production.
What are the potential risks associated with the Cost Plus Fixed Fee contract type in this context?
The primary risk with Cost Plus Fixed Fee (CPFF) contracts is that the contractor may incur higher costs than anticipated, as the government reimburses allowable costs plus a fixed fee. This can lead to the government paying more than if a fixed-price contract was used. Effective oversight is crucial to scrutinize costs and ensure they are reasonable and allocable to the contract's objectives.
How does this investment align with broader DoD strategies for microelectronics and supply chain resilience?
This investment likely aligns with DoD's strategic goals to enhance domestic microelectronics capabilities and reduce reliance on foreign supply chains. Developing advanced prototypes domestically fosters innovation and strengthens the defense industrial base. It contributes to ensuring access to critical technologies necessary for national security, particularly in an era of increasing geopolitical competition.
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: $29,727,157
Exercised Options: $29,727,157
Current Obligation: $29,727,157
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $2,954,674
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: 2023-09-21
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-10-14
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