DoD's $4.8M Advanced Technology Support Program contract awarded to Northrop Grumman for microelectronic solutions
Contract Overview
Contract Amount: $4,820,297 ($4.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-04-08
End Date: 2026-04-30
Contract Duration: 387 days
Daily Burn Rate: $12.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR BOX KICK, CET 25-504.
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $4.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR BOX KICK, CET 25-504. Key points: 1. Contract awarded to a single, large defense contractor, Northrop Grumman. 2. Focus on advanced microelectronics suggests a specialized, high-value capability. 3. Full and open competition was utilized, indicating a broad search for solutions. 4. The contract duration of 387 days is relatively short for complex R&D.
Value Assessment
Rating: fair
The contract's value of $4.8M is moderate. Benchmarking against similar advanced technology support contracts is difficult without more specific details on the 'progressive microelectronic capability solutions' required.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific award mechanism (delivery order) and the nature of 'advanced technology' may limit the number of truly competitive bids.
Taxpayer Impact: Taxpayer funds are being used for advanced defense technology, with the expectation of a return on investment through enhanced national security capabilities.
Public Impact
Enhances national defense capabilities through cutting-edge microelectronics. Supports the development of specialized technological solutions for the Department of Defense. Potential for technological advancements that could have broader applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited duration for advanced technology development.
- Lack of specific performance metrics or deliverables in provided data.
- Potential for cost overruns if technology development proves more complex than anticipated.
Positive Signals
- Utilizes full and open competition.
- Focus on critical advanced technology.
- Awarded to a reputable defense contractor.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on advanced microelectronics. Spending in this area is critical for maintaining a technological edge in defense, often characterized by high R&D costs and specialized expertise.
Small Business Impact
The contract data indicates no specific set-aside for small businesses, and the prime contractor is a large corporation. This suggests that small businesses are unlikely to be direct beneficiaries of this prime contract, though they may participate as subcontractors.
Oversight & Accountability
The Department of Defense, through the Defense Microelectronics Activity, is responsible for overseeing this contract. Accountability will depend on the clarity of performance metrics and the rigor of oversight during the contract's execution.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Microelectronics Activity Programs
Risk Flags
- Technology development uncertainty.
- Potential for scope creep.
- Limited contract duration for complex R&D.
- Lack of detailed performance metrics.
- Sole prime contractor is a large entity.
Tags
engineering-services, department-of-defense, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $4.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRES PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS FOR BOX KICK, CET 25-504.
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 $4.8 million.
What is the period of performance?
Start: 2025-04-08. End: 2026-04-30.
What specific 'progressive microelectronic capability solutions' are being acquired, and how do they align with current defense needs?
The provided data lacks specificity regarding the exact nature of the microelectronic solutions. Understanding the precise technological advancements sought is crucial to assessing the contract's value and its alignment with evolving defense requirements. Further details on the program's objectives and expected outcomes are needed for a comprehensive evaluation.
What are the key performance indicators (KPIs) and milestones for this contract, and how will success be measured?
The current data does not include specific KPIs or milestones for the ATSP contract. Measuring success will be challenging without defined performance metrics. Effective oversight will require the Defense Microelectronics Activity to establish clear, measurable objectives and track progress rigorously against them to ensure taxpayer value.
How does the firm-fixed-price contract type mitigate risks associated with developing advanced, potentially unpredictable technologies?
A firm-fixed-price contract aims to transfer risk to the contractor, providing cost certainty for the government. However, for advanced technology development where requirements can evolve and unforeseen challenges arise, this structure might incentivize cutting corners or lead to disputes if the contractor cannot meet the fixed price without compromising quality or scope.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $4,820,297
Exercised Options: $4,820,297
Current Obligation: $4,820,297
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $68,675
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: 2025-04-08
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-01-08
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