DoD's $47.1M ARMS TA1 Program: R&D Spending on Advanced Sensors by Northrop Grumman

Contract Overview

Contract Amount: $47,111,664 ($47.1M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2011-09-30

End Date: 2019-02-15

Contract Duration: 2,695 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ADVANCED ROTARY WING MULTIFUNCTION SENSOR (ARMS) - TECHNICAL AREA 1 (TA1)PROGRAM.

Place of Performance

Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $47.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ADVANCED ROTARY WING MULTIFUNCTION SENSOR (ARMS) - TECHNICAL AREA 1 (TA1)PROGRAM. Key points: 1. The program focused on Research and Development in Physical, Engineering, and Life Sciences. 2. Northrop Grumman Systems Corporation was the sole contractor. 3. The contract was awarded under Full and Open Competition. 4. The total award value was $47.1 million. 5. The contract duration was 2695 days.

Value Assessment

Rating: fair

The contract type was Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award value of $47.1 million for a multi-year R&D effort requires careful scrutiny against similar advanced sensor development projects.

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. However, the specific details of the price discovery mechanism are not provided, making it difficult to assess if the final price was optimal.

Taxpayer Impact: Taxpayer funds were used for advanced sensor R&D. The value for money depends on the successful development and future application of the technology.

Public Impact

Development of advanced sensor technology could have significant implications for national security. Investment in R&D supports technological innovation within the defense sector. The long duration of the contract suggests a complex and potentially evolving research scope.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can incentivize higher costs.
  • Lack of detailed cost breakdown makes value assessment difficult.
  • Long contract duration may indicate scope creep or unforeseen challenges.

Positive Signals

  • Awarded under Full and Open Competition.
  • Focus on critical R&D for advanced sensors.
  • Significant investment in technological advancement.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical and engineering sciences. Defense R&D spending benchmarks vary widely based on technological complexity and program goals.

Small Business Impact

The data indicates the prime contractor is Northrop Grumman Systems Corporation, a large business. There is no information provided regarding small business participation or subcontracting.

Oversight & Accountability

Oversight would typically be managed by the Defense Advanced Research Projects Agency (DARPA). The effectiveness of oversight depends on regular reporting, milestone reviews, and adherence to contract terms.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
  • Department of Defense Contracting
  • Defense Advanced Research Projects Agency Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Lack of detailed technical outcome data.
  • Long contract duration.
  • Sole prime contractor identified.

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 $47.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ADVANCED ROTARY WING MULTIFUNCTION SENSOR (ARMS) - TECHNICAL AREA 1 (TA1)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 Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $47.1 million.

What is the period of performance?

Start: 2011-09-30. End: 2019-02-15.

What were the key technological advancements achieved by the ARMS TA1 program, and how do they compare to industry standards?

The specific technological advancements are not detailed in the provided data. A thorough review would require access to program reports, technical documentation, and independent assessments to compare the ARMS TA1 program's outcomes against established industry standards and competitor technologies in advanced sensor development.

What were the primary risks associated with the Cost Plus Fixed Fee contract structure for this R&D program?

The primary risks with a Cost Plus Fixed Fee (CPFF) structure in R&D include potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This can reduce the incentive for cost control if not rigorously monitored. DARPA would need strong oversight to ensure costs remained reasonable and the fixed fee adequately compensated for the contractor's effort and risk.

How effectively did the Full and Open Competition process ensure competitive pricing for the ARMS TA1 program?

While Full and Open Competition is designed to maximize competition and achieve fair and reasonable prices, the effectiveness in this specific case is difficult to ascertain without more data. Factors such as the number of bidders, the technical requirements, and the negotiation process all influence price discovery. A review of the solicitation and award documents would be needed to confirm competitive pricing.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 6

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,965,970

Exercised Options: $47,965,970

Current Obligation: $47,111,664

Subaward Activity

Number of Subawards: 1807

Total Subaward Amount: $612,866,839

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2011-09-30

Current End Date: 2019-02-15

Potential End Date: 2019-02-15 00:00:00

Last Modified: 2025-04-21

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