DoD's Missile Defense Agency Awards Northrop Grumman $30.7M for R&D Services
Contract Overview
Contract Amount: $30,744,071 ($30.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-06-11
End Date: 2026-06-30
Contract Duration: 749 days
Daily Burn Rate: $41.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SERVICES TO SUPPORT TASK INSTRUCTION 0800-24-01
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $30.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SERVICES TO SUPPORT TASK INSTRUCTION 0800-24-01 Key points: 1. This contract focuses on Research and Development in Physical, Engineering, and Life Sciences. 2. Northrop Grumman Systems Corporation is the sole awardee. 3. The contract is for a period of approximately 2 years. 4. The award is a Delivery Order under a larger contract. 5. The total value is $30.7 million.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical R&D services.
Public Impact
Supports advanced research and development in critical defense areas. Potential for technological advancements in missile defense systems. Investment in scientific and engineering expertise within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can be susceptible to cost growth.
- Long duration of 749 days requires ongoing monitoring.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security mission.
Sector Analysis
This contract falls under the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority and national security.
Small Business Impact
The data indicates this award was not set aside for small businesses, and the prime contractor is a large corporation. There is no information on small business subcontracting participation.
Oversight & Accountability
As a Delivery Order under a larger contract, oversight is likely managed through the existing contract vehicle. The Missile Defense Agency's oversight is critical for ensuring performance and cost control.
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
- Cost Plus Fixed Fee contract type.
- Potential for scope creep in R&D projects.
- Reliance on a single large contractor.
- Long contract duration requires sustained oversight.
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 $30.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SERVICES TO SUPPORT TASK INSTRUCTION 0800-24-01
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 $30.7 million.
What is the period of performance?
Start: 2024-06-11. End: 2026-06-30.
What specific R&D tasks will Northrop Grumman perform under this contract, and how do they align with current missile defense priorities?
The contract details are limited, but the NAICS code 541715 indicates research and development in physical, engineering, and life sciences. Specific tasks would likely involve advanced theoretical and applied research, experimental development, and analysis related to missile defense technologies, potentially including sensor development, interceptor technologies, or system integration.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure value for money?
While specific KPIs are not detailed, typical metrics for R&D contracts include successful completion of research milestones, technical feasibility demonstrations, prototype development, and timely delivery of research reports. The Cost Plus Fixed Fee structure implies that performance against defined objectives will be monitored to justify the fixed fee payment.
How does the $30.7 million award compare to similar R&D contracts for missile defense technologies, and does it represent a fair and reasonable price?
Benchmarking this specific award requires access to proprietary contract data. However, given the specialized nature of missile defense R&D and the prime contractor's expertise, the price appears within a reasonable range for complex research efforts. The full and open competition process should have ensured a competitive price discovery.
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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ085622R0002
Pricing Type: COST PLUS FIXED FEE (U)
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: $31,528,895
Exercised Options: $31,528,895
Current Obligation: $30,744,071
Actual Outlays: $305,548
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $3,972,448
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: 2024-06-11
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-07
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