DoD's $49.9M Northrop Grumman contract for counter-UAS microelectronics capability boosts availability

Contract Overview

Contract Amount: $49,911,825 ($49.9M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2024-05-14

End Date: 2025-10-20

Contract Duration: 524 days

Daily Burn Rate: $95.3K/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 TO ADD CAPABILITY, IMPROVE PERFORMANCE, AND INCREASE AVAILABILITY OF THE MICROELECTRONICS-BASED COUNTER-UNMANNED AIRCRAFT SYSTEM SYSTEM.

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35806

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $49.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRED PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS TO ADD CAPABILITY, IMPROVE PERFORMANCE, AND INCREASE AVAILABILITY OF THE MICROELECTRONICS-BASED COUNTER-UNMANNED AIRCRAFT SYSTEM SYSTEM. Key points: 1. Contract aims to enhance microelectronics solutions for counter-unmanned aircraft systems. 2. Focus on adding capability, improving performance, and increasing system availability. 3. Awarded via full and open competition, suggesting a competitive bidding process. 4. Contract duration of 524 days indicates a medium-term project. 5. Northrop Grumman Systems Corporation is the prime contractor. 6. The contract falls under Engineering Services NAICS code 541330. 7. This award is a Delivery Order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $49.9 million for engineering services related to advanced microelectronics for counter-UAS systems appears reasonable given the specialized nature of the work. Benchmarking against similar complex defense technology development contracts is challenging without more specific details on the scope of 'Progressive Microelectronic Capability Solutions.' However, the fixed fee component suggests a degree of cost control. The contract's focus on enhancing capability and performance for a critical defense system implies a strategic investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection of qualified contractors and potentially better pricing due to market forces. The fact that it was competed suggests that the agency sought the best value from a range of potential providers in the engineering services sector.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and its operational units requiring advanced counter-unmanned aircraft systems. The services delivered will enhance the capability, performance, and availability of critical microelectronics-based defense systems. The geographic impact is likely national, supporting defense readiness across various theaters of operation. Workforce implications include specialized engineers and technicians in microelectronics and defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in complex R&D-intensive engineering services.
Dependence on a single large prime contractor for critical defense technology.
Scope creep could increase the final cost beyond the initial award amount.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Focus on enhancing critical defense capabilities aligns with national security priorities.
Contract aims to improve performance and availability, indicating a focus on operational effectiveness.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced microelectronics for defense applications. The market for defense engineering services is substantial, driven by continuous technological advancement and evolving threat landscapes. This contract addresses a niche but critical area within the broader defense technology market, focusing on counter-UAS capabilities, a rapidly growing area of military concern. Comparable spending benchmarks would typically involve other advanced R&D or specialized engineering contracts within the DoD.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded to Northrop Grumman Systems Corporation, it is unlikely to involve significant direct subcontracting opportunities for small businesses unless specified within the contract's statement of work. The focus is on advanced capabilities likely requiring specialized expertise often found in larger firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Microelectronics Activity (DMEA) and potentially the relevant contracting command within the Department of Defense. Accountability measures are embedded in the Cost Plus Fixed Fee (CPFF) contract type, which incentivizes the contractor to manage costs while achieving fixed-fee objectives. Transparency is generally maintained through contract award databases and reporting requirements, though specific technical details may be sensitive.

Related Government Programs

Counter-Unmanned Aircraft Systems (C-UAS) Programs
Microelectronics Research and Development
Defense Advanced Research Projects Agency (DARPA) Initiatives
Naval Sea Systems Command (NAVSEA) Contracts
Air Force Research Laboratory (AFRL) Contracts

Risk Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
Reliance on a single large prime contractor for critical technology.
Potential for scope creep in advanced engineering services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRED PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS TO ADD CAPABILITY, IMPROVE PERFORMANCE, AND INCREASE AVAILABILITY OF THE MICROELECTRONICS-BASED COUNTER-UNMANNED AIRCRAFT SYSTEM SYSTEM.

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 $49.9 million.

What is the period of performance?

Start: 2024-05-14. End: 2025-10-20.

What is the specific nature of the 'Progressive Microelectronic Capability Solutions' being acquired?

The provided data indicates that the 'Progressive Microelectronic Capability Solutions' are intended to add capability, improve performance, and increase the availability of the microelectronics-based counter-unmanned aircraft system (C-UAS) system. While the exact technical specifications are not detailed, this suggests advancements in the design, manufacturing, or integration of microelectronic components crucial for the effective operation of C-UAS platforms. This could involve areas such as signal processing, power management, or specialized sensor integration within the C-UAS architecture. The term 'progressive' implies an iterative or developmental approach to enhancing these solutions.

How does the $49.9 million value compare to similar DoD contracts for C-UAS technology development?

Benchmarking the $49.9 million value requires comparing it to similar contracts for advanced C-UAS technology development, which can be challenging due to the specialized nature of the field and varying contract scopes. However, for complex engineering and development efforts in defense technology, this value is within a typical range for a medium-sized project or a significant delivery order under a larger IDIQ. Contracts for developing and integrating advanced electronic systems, especially those with R&D components, often run into tens of millions of dollars. The specific focus on microelectronics for C-UAS suggests a high degree of technical sophistication, justifying the investment.

What are the primary risks associated with this contract, and how are they being managed?

Primary risks include technical challenges in developing advanced microelectronics, potential cost overruns inherent in R&D-heavy contracts, and schedule delays. The Cost Plus Fixed Fee (CPFF) contract type aims to manage cost risks by providing a fixed fee to the contractor, incentivizing them to control costs while meeting performance objectives. The contract's duration of 524 days (approximately 1.5 years) suggests a defined project timeline, which helps in managing schedule risks. The Department of Defense's oversight through the Defense Microelectronics Activity would also play a role in risk mitigation through regular reviews and performance monitoring.

What is Northrop Grumman Systems Corporation's track record in defense microelectronics and C-UAS technology?

Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in aerospace, defense, and advanced technologies, including microelectronics. They have a well-established track record in developing complex electronic systems, sensors, and integrated platforms for various military applications. While specific details on their C-UAS microelectronics portfolio are proprietary, their broad capabilities in areas like electronic warfare, radar systems, and secure communications suggest a strong foundation for undertaking this contract. Their history includes numerous large-scale DoD contracts, indicating a capacity to manage complex projects and deliver advanced technological solutions.

What is the historical spending pattern for similar engineering services contracts within the Defense Microelectronics Activity?

Historical spending patterns for the Defense Microelectronics Activity (DMEA) would reveal a consistent investment in specialized engineering and microelectronics services to support DoD's technological superiority. While specific aggregate data for DMEA's historical spending on C-UAS microelectronics isn't publicly detailed in this context, the agency's mission inherently involves procuring advanced electronic capabilities. Past awards likely show a trend of significant investment in areas like semiconductor development, trusted microelectronics, and advanced packaging, often through competitive solicitations for engineering services, research, and prototyping. The $49.9M award aligns with the agency's role in acquiring cutting-edge solutions.

How does the 'full and open competition' impact the value proposition for taxpayers?

Full and open competition generally enhances the value proposition for taxpayers by fostering a competitive environment. This process encourages multiple qualified contractors to submit proposals, leading to potentially lower prices through bidding and a wider selection of innovative solutions. It ensures that the government is not limited to a single provider, thereby increasing the likelihood of obtaining the best possible technology and services at a fair and reasonable price. For this $49.9 million contract, competition likely drove efficiencies and ensured that the selected solution represented a strong value for the investment in critical C-UAS capabilities.

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: $49,911,825

Exercised Options: $49,911,825

Current Obligation: $49,911,825

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $8,058,453

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