DoD's $17.8M High Altitude Lidar Program Awarded to Northrop Grumman Under Sole-Source Contract
Contract Overview
Contract Amount: $17,803,716 ($17.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2010-05-20
End Date: 2011-05-31
Contract Duration: 376 days
Daily Burn Rate: $47.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: HIGH ALTITUDE LIDAR OPERATIONS AND EVALUATION PROGRAM
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $17.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: HIGH ALTITUDE LIDAR OPERATIONS AND EVALUATION PROGRAM Key points: 1. The Department of Defense awarded a $17.8 million contract for High Altitude Lidar Operations and Evaluation. 2. Northrop Grumman Systems Corporation is the sole contractor, indicating a lack of competitive bidding. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. This R&D effort falls under NAICS code 541712, focusing on physical and engineering sciences.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, while common for R&D, carries inherent risks of cost escalation. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this $17.8 million contract may result in a higher overall cost to taxpayers than if multiple vendors had vied for the work.
Public Impact
Advanced lidar technology development for high-altitude applications. Potential for enhanced surveillance and data collection capabilities for the DoD. Investment in specialized R&D capabilities within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- Lack of small business participation noted.
Positive Signals
- Supports critical R&D in advanced sensor technology.
- Addresses specific high-altitude operational needs for the DoD.
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical and engineering sciences. Defense R&D spending often involves specialized, high-cost contracts due to the unique requirements and limited vendor pool.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the prime contractor is a large corporation. Further investigation would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of Defense, with oversight likely provided by the Defense Contract Management Agency. The sole-source nature warrants close monitoring to ensure fair pricing and effective execution.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing due to no competition
- Potential for cost overruns
- No indication of small business participation
Tags
research-and-development-in-the-physical, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. HIGH ALTITUDE LIDAR OPERATIONS AND EVALUATION PROGRAM
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 $17.8 million.
What is the period of performance?
Start: 2010-05-20. End: 2011-05-31.
What specific technological advancements does this lidar program aim to achieve, and how do they align with current DoD strategic objectives?
This program likely focuses on developing lidar systems capable of operating effectively at high altitudes, potentially for enhanced reconnaissance, mapping, or target identification. The specific advancements would need to be detailed in the contract's SOW. Alignment with DoD objectives would depend on whether these capabilities address identified gaps in intelligence, surveillance, and reconnaissance (ISR) or other critical mission areas.
Given the sole-source nature, what mechanisms are in place to ensure Northrop Grumman is not overcharging for the services and research provided?
For sole-source contracts, especially Cost Plus Fixed Fee, the government typically employs rigorous cost analysis and auditing. This includes reviewing the contractor's proposed costs, historical pricing, and potentially independent government cost estimates. The Defense Contract Management Agency (DCMA) would likely be involved in monitoring expenditures and ensuring compliance with contract terms to prevent overcharging.
What is the expected long-term impact of this R&D investment on the DoD's technological capabilities and potential future procurement needs?
Successful development could significantly enhance the DoD's ability to gather critical data from high-altitude platforms, improving situational awareness and operational effectiveness. This could lead to follow-on production contracts or integration into existing systems. It also represents an investment in specialized R&D expertise that could be leveraged for future defense technology initiatives.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,803,716
Exercised Options: $17,803,716
Current Obligation: $17,803,716
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-05-20
Current End Date: 2011-05-31
Potential End Date: 2011-05-31 00:00:00
Last Modified: 2024-02-23
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