DoD Awards Northrop Grumman $27.8M for GMD Booster Sustainment, No Competition
Contract Overview
Contract Amount: $27,805,549 ($27.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-05
End Date: 2027-12-31
Contract Duration: 1,212 days
Daily Burn Rate: $22.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: GROUND-BASED MIDCOURSE DEFENSE (GMD) BOOSTER SUSTAINMENT CONTRACT (BSC) TASK ORDER 0001
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $27.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: GROUND-BASED MIDCOURSE DEFENSE (GMD) BOOSTER SUSTAINMENT CONTRACT (BSC) TASK ORDER 0001 Key points: 1. Significant contract awarded to a single vendor, raising questions about competition. 2. Focus on R&D in physical sciences, potentially high-value but complex area. 3. Long contract duration (over 3 years) suggests a critical, ongoing need. 4. Cost-plus fixed fee structure requires careful oversight to manage expenses.
Value Assessment
Rating: questionable
The $27.8 million award for a booster sustainment contract uses a cost-plus fixed fee structure. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar sustainment efforts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. This lack of competition limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive pricing, potentially increasing the overall cost of the GMD program.
Public Impact
Ensures continued operational readiness of the Ground-Based Midcourse Defense system. Supports advanced research and development in missile defense technology. Potential for technological advancements that enhance national security. Contract awarded to a large, established defense contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long-term sustainment effort
Positive Signals
- Critical national security program
- Sustains existing defense capabilities
Sector Analysis
This contract falls under Research and Development in Physical Sciences, a sector often characterized by high innovation and significant government investment. Benchmarks for sustainment contracts in this specific niche are difficult to establish due to proprietary technologies and specialized requirements.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The cost-plus fixed fee contract type necessitates robust oversight from the Missile Defense Agency to ensure costs are reasonable and allocable, and that the fixed fee is justified.
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
- Sole-source award limits price competition.
- Cost-plus contract type can incentivize higher spending.
- Long contract duration increases exposure to cost growth.
- Lack of transparency on specific R&D advancements.
- Potential for vendor lock-in.
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 $27.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. GROUND-BASED MIDCOURSE DEFENSE (GMD) BOOSTER SUSTAINMENT CONTRACT (BSC) TASK ORDER 0001
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 $27.8 million.
What is the period of performance?
Start: 2024-09-05. End: 2027-12-31.
What is the justification for awarding this critical sustainment contract on a sole-source basis, and what steps are being taken to ensure cost-effectiveness?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for continuity with existing systems. The Missile Defense Agency must implement stringent cost controls and performance monitoring under the cost-plus fixed fee structure to mitigate potential cost overruns and ensure value for taxpayer money.
How does the cost of this booster sustainment contract compare to historical spending on similar GMD components or comparable defense systems?
Without competitive bids, a direct cost comparison is challenging. Analysis would require benchmarking against internal cost estimates, historical data for the GMD program, or potentially classified data from similar sole-source sustainment contracts for advanced defense systems, considering inflation and technological evolution.
What are the long-term implications of relying on a single contractor for sustainment of such a critical defense asset?
Long-term sole-source reliance can lead to vendor lock-in, reduced innovation incentives, and potentially escalating costs over time. It also concentrates risk with one entity. Periodic reviews and potential future competitive strategies, if feasible, are crucial for mitigating these risks and ensuring long-term program viability.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ085621R0006
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1575 SOUTH PRICE RD, CHANDLER, AZ, 85286
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: $54,159,530
Exercised Options: $54,159,530
Current Obligation: $27,805,549
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $124,469
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ085621D0001
IDV Type: IDC
Timeline
Start Date: 2024-09-05
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2026-01-15
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)