DoD Awards Northrop Grumman $54.3M for Missile Defense R&D
Contract Overview
Contract Amount: $54,319,638 ($54.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-07-29
End Date: 2027-05-31
Contract Duration: 1,767 days
Daily Burn Rate: $30.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: OPERATIONS & SUSTAINMENT SUPPORT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $54.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: OPERATIONS & SUSTAINMENT SUPPORT Key points: 1. Significant contract awarded to a major defense contractor. 2. Focus on R&D in physical, engineering, and life sciences. 3. Potential for long-term sustainment and operations support. 4. Competition method is full and open, suggesting market engagement.
Value Assessment
Rating: good
The contract type is Cost Plus Incentive Fee, which allows for shared risk and reward between the government and contractor. The duration of 1767 days suggests a substantial project requiring phased funding and oversight.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, 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 use of full and open competition aims to secure optimal pricing for taxpayers by fostering a competitive environment.
Public Impact
Enhances national security through advanced missile defense capabilities. Supports technological innovation in critical R&D areas. Creates high-skilled jobs within the defense sector. Contributes to the economic activity in Alabama.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overruns due to incentive fee structure.
- Scope creep in R&D projects.
- Dependency on a single contractor for critical systems.
Positive Signals
- Advancement of cutting-edge missile defense technology.
- Potential for significant technological breakthroughs.
- Strong oversight from the Missile Defense Agency.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences, a critical sector for national defense. Spending benchmarks in this area are highly variable due to the nature of innovation and specific project requirements.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses. While Northrop Grumman is a large prime contractor, subcontracting opportunities may exist for smaller firms within their supply chain.
Oversight & Accountability
The Missile Defense Agency is responsible for overseeing this contract. The Cost Plus Incentive Fee structure necessitates robust monitoring to ensure performance targets are met and costs are controlled effectively.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Potential for cost overruns.
- R&D project complexity and uncertainty.
- Dependency on contractor's technical expertise.
- Long contract duration may lead to evolving requirements.
- Ensuring alignment with future threat landscapes.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. OPERATIONS & SUSTAINMENT SUPPORT
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 (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $54.3 million.
What is the period of performance?
Start: 2022-07-29. End: 2027-05-31.
What specific technological advancements are expected from this R&D effort, and how will they be measured?
The specific technological advancements are not detailed in the provided data. However, typical R&D contracts of this nature aim to improve missile detection, tracking, and interception capabilities. Success will likely be measured through rigorous testing, prototype development, and demonstration of enhanced performance metrics against evolving threats.
What are the primary risks associated with the Cost Plus Incentive Fee (CPIF) contract type in this R&D context?
The primary risks with CPIF in R&D include potential for cost overruns if targets are not met efficiently, and the contractor may prioritize achieving incentive fee targets over fundamental research breakthroughs. The government also bears the risk of paying higher costs if performance is exceptional, necessitating careful negotiation of fee structures and robust oversight.
How will the effectiveness of the R&D outcomes be evaluated post-contract to ensure long-term value for the DoD?
Effectiveness will be evaluated through phased testing, integration into existing defense systems, and performance against simulated and real-world scenarios. Post-contract, the DoD will assess the operational utility, cost-effectiveness, and contribution of the developed technologies to the overall missile defense architecture. Continued investment and further R&D may be required to realize full value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ085622R0002
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 301 VOYAGER WAY NW, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,819,101
Exercised Options: $63,819,101
Current Obligation: $54,319,638
Actual Outlays: $5,390,819
Subaward Activity
Number of Subawards: 70
Total Subaward Amount: $25,539,530
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HQ085622D0001
IDV Type: IDC
Timeline
Start Date: 2022-07-29
Current End Date: 2027-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2025-12-17
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)