Northrop Grumman awarded $37.7M for DARPA THz Electronics Program, focusing on advanced circuit development

Contract Overview

Contract Amount: $37,746,947 ($37.7M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2009-04-02

End Date: 2017-04-28

Contract Duration: 2,948 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ON THE DARPA TERAHERTZ (THZ) ELECTRONICS PROGRAM, TECHNICAL AREA I, THE CONTRACTOR SHALL DEVELOP CRITICAL DEVICE AND INTEGRATION TECHNOLOGIES NECESSARY TO REALIZE COMPACT, HIGH-PERFORMANCE ELECTRONIC CIRCUITS THAT OPERATE AT A CENTER FREQUENCY OF 1.03 THZ.

Place of Performance

Location: REDONDO BEACH, LOS ANGELES County, CALIFORNIA, 90278

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $37.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ON THE DARPA TERAHERTZ (THZ) ELECTRONICS PROGRAM, TECHNICAL AREA I, THE CONTRACTOR SHALL DEVELOP CRITICAL DEVICE AND INTEGRATION TECHNOLOGIES NECESSARY TO REALIZE COMPACT, HIGH-PERFORMANCE ELECTRONIC CIRCUITS THAT OPERATE AT A CENTER FREQUENCY OF 1.03 THZ. Key points: 1. Contract focuses on developing critical device and integration technologies for compact, high-performance electronic circuits operating at 1.03 THz. 2. The program aims to advance capabilities in terahertz electronics, a field with significant potential for next-generation sensing and communication. 3. The contract duration of nearly 8 years suggests a long-term research and development effort. 4. Awarded under full and open competition, indicating a broad search for qualified contractors. 5. The use of a Cost Plus Fixed Fee (CPFF) contract type suggests inherent R&D uncertainties. 6. Northrop Grumman's extensive experience in defense contracting positions them well for this complex research.

Value Assessment

Rating: fair

The contract value of $37.7 million over nearly 8 years for advanced R&D in terahertz electronics appears reasonable given the cutting-edge nature of the technology. Benchmarking is difficult due to the specialized and novel aspects of THz electronics. The CPFF structure allows for flexibility but requires careful oversight to manage costs effectively. Without specific performance metrics or comparable projects, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 9 bidders identified. This suggests a robust competitive process aimed at identifying the most capable contractor for this specialized research. The presence of multiple bidders indicates interest and capability within the industry for this type of advanced technology development, which can contribute to better price discovery and innovation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and drive innovation, potentially reducing long-term costs for advanced technology development.

Public Impact

The primary beneficiaries are the Department of Defense and potentially other government agencies requiring advanced sensing and communication capabilities. The services delivered involve fundamental research and development of novel electronic circuits operating at terahertz frequencies. The geographic impact is primarily within California, where Northrop Grumman Systems Corporation is located, but the technological advancements could have national implications. Workforce implications include the employment of highly skilled scientists, engineers, and technicians in specialized fields of electronics and physics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost overruns are a potential risk with Cost Plus Fixed Fee contracts, especially in long-term R&D projects with inherent uncertainties.
The highly specialized nature of terahertz electronics may limit the pool of truly qualified personnel and create dependencies.
Ensuring clear and measurable technical milestones is crucial for effective oversight of this research program.

Positive Signals

Awarded under full and open competition, indicating a strong market response and potential for innovation.
Northrop Grumman is a major defense contractor with a proven track record in complex R&D programs.
The program addresses a critical technological area (terahertz electronics) with significant future application potential.
The long contract duration suggests a commitment to achieving substantial technological advancements.

Sector Analysis

The contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering. The market for terahertz electronics is nascent but growing, with potential applications in defense, security, telecommunications, and scientific instrumentation. Comparable spending benchmarks are difficult to establish due to the cutting-edge nature of this specific research, but significant government investment is typical for foundational technology development in areas with high strategic importance.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. As a large prime contractor, Northrop Grumman may engage small businesses for specialized components or services, but the primary focus appears to be on large-scale R&D capabilities. The impact on the small business ecosystem is likely indirect, potentially through supply chain opportunities if specific components are outsourced.

Oversight & Accountability

Oversight is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for contract administration. The Cost Plus Fixed Fee (CPFF) structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable to the contract. Transparency is generally maintained through regular reporting requirements from the contractor, detailing technical progress and expenditures. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DARPA Programs
Advanced Electronics Research
Terahertz Technology Development
Defense Research and Development
Northrop Grumman Contracts

Risk Flags

Long-term R&D contract with inherent cost uncertainty.
Reliance on specialized, potentially limited, technical expertise.
Need for rigorous oversight of CPFF contract expenditures.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ON THE DARPA TERAHERTZ (THZ) ELECTRONICS PROGRAM, TECHNICAL AREA I, THE CONTRACTOR SHALL DEVELOP CRITICAL DEVICE AND INTEGRATION TECHNOLOGIES NECESSARY TO REALIZE COMPACT, HIGH-PERFORMANCE ELECTRONIC CIRCUITS THAT OPERATE AT A CENTER FREQUENCY OF 1.03 THZ.

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $37.7 million.

What is the period of performance?

Start: 2009-04-02. End: 2017-04-28.

What is Northrop Grumman's track record with DARPA and similar advanced research programs?

Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in research and development across various technological domains, including advanced electronics, sensors, and communication systems. They have a long history of working with the Defense Advanced Research Projects Agency (DARPA) on cutting-edge projects. While specific details of past DARPA contracts are not provided here, their overall profile suggests a strong capability to manage complex, high-risk, high-reward research initiatives. Their track record typically involves delivering advanced technological solutions for defense applications, often pushing the boundaries of current capabilities. This includes significant work in areas relevant to the THz program, such as advanced materials, microelectronics, and high-frequency systems.

How does the $37.7 million contract value compare to other R&D efforts in terahertz technology?

Benchmarking the $37.7 million contract value for the DARPA THz Electronics Program is challenging due to the highly specialized and nascent nature of terahertz (THz) technology. Research in this field is often characterized by long development cycles and significant upfront investment. While specific comparable contract values are not readily available in the public domain, $37.7 million over nearly 8 years represents a substantial, but not necessarily excessive, investment for foundational R&D in a critical emerging technology area. DARPA typically funds high-risk, high-reward research that requires significant resources. The value reflects the complexity of developing compact, high-performance THz circuits and the long-term commitment required for such advancements, rather than a direct comparison to commercially available products or services.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, particularly for a long-term R&D program like the DARPA THz Electronics Program, revolve around cost control and contractor performance. For the government, the risk is that actual costs could significantly exceed initial estimates, even with a fixed fee, if the contractor does not manage resources efficiently or if unforeseen technical challenges arise. The contractor bears the risk of not recovering all incurred costs if they are deemed unallowable or if the project scope changes drastically without modification. For this specific contract, the inherent uncertainties in developing novel terahertz electronics mean that research pathways may prove more costly or time-consuming than anticipated. Effective oversight by the Defense Contract Management Agency (DCMA) is crucial to mitigate these risks by scrutinizing costs and ensuring progress aligns with the contract's objectives.

What is the expected program effectiveness and how is it measured?

The expected effectiveness of the DARPA THz Electronics Program is to develop critical device and integration technologies enabling compact, high-performance electronic circuits operating at 1.03 THz. Program effectiveness will likely be measured through a series of technical milestones and performance metrics defined in the contract. These could include the successful demonstration of specific device functionalities, achievement of target operating frequencies and power levels, miniaturization goals, and integration capabilities with existing or planned systems. DARPA's approach often involves phased development, where successful completion of one phase enables progression to the next. Regular technical reviews and demonstrations by Northrop Grumman will be key to assessing progress and overall program effectiveness against DARPA's strategic objectives for advancing terahertz electronics.

How has federal spending in terahertz technology evolved, and what is DARPA's role?

Federal spending in terahertz (THz) technology has been steadily increasing as the potential applications in defense, security, communications, and scientific research become more apparent. DARPA has historically played a pivotal role in funding foundational and high-risk research in emerging technologies, including THz electronics. Their investments aim to overcome fundamental scientific and engineering challenges to enable breakthrough capabilities that the private sector might not pursue due to high initial costs and long timelines. While specific aggregate federal spending figures for THz technology are not readily available, DARPA's consistent funding of advanced research programs, such as the THz Electronics Program, signifies its strategic importance. This contract represents a significant portion of dedicated federal R&D funding in this specialized area, aiming to mature the technology towards practical applications.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 1 SPACE PARK BLVD, REDONDO BEACH, CA, 90278

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $37,746,947

Exercised Options: $37,746,947

Current Obligation: $37,746,947

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline