Dod's Tactically Exploited Reconnaissance Node (tern) Program Phase 1 Awarded to Northrop Grumman for $26.9M
Contract Overview
Contract Amount: $26,948,941 ($26.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2013-09-09
End Date: 2015-12-31
Contract Duration: 843 days
Daily Burn Rate: $32.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 34
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TACTICALLY EXPLOITED RECONNAISSANCE NODE (TERN) PROGRAM PHASE 1
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $26.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TACTICALLY EXPLOITED RECONNAISSANCE NODE (TERN) PROGRAM PHASE 1 Key points: 1. The TERN program aims to develop advanced reconnaissance capabilities. 2. Northrop Grumman, a major defense contractor, secured the award. 3. The contract falls under R&D in Physical, Engineering, and Life Sciences. 4. Competition was full and open, suggesting a robust price discovery process.
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. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives fair value.
Taxpayer Impact: The competitive award process is expected to yield a reasonable price for the research and development services, benefiting taxpayers.
Public Impact
Development of advanced reconnaissance technology could enhance national security capabilities. Investment in R&D supports technological innovation within the defense sector. The program's success could lead to future advancements in surveillance and intelligence gathering.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts require diligent oversight to manage potential cost growth.
- The duration of the contract (843 days) is substantial for an R&D phase.
Positive Signals
- Awarded under full and open competition.
- Northrop Grumman is an established defense contractor with relevant expertise.
Sector Analysis
This contract falls within the Research and Development sector, specifically for Physical, Engineering, and Life Sciences. Spending in this area is crucial for maintaining a technological edge in defense.
Small Business Impact
The data indicates this contract was awarded to a large business (Northrop Grumman) and does not show any specific set-asides or participation goals for small businesses in this particular award.
Oversight & Accountability
The contract type and the nature of R&D require ongoing oversight from DARPA to ensure progress aligns with objectives and costs remain controlled. Performance metrics will be key.
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.
- Long contract duration for an R&D phase.
- Potential for scope creep in advanced R&D projects.
- Reliance on a single large prime contractor.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TACTICALLY EXPLOITED RECONNAISSANCE NODE (TERN) PROGRAM PHASE 1
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 $26.9 million.
What is the period of performance?
Start: 2013-09-09. End: 2015-12-31.
What specific technological advancements are anticipated from the TERN program, and how will they be measured?
The TERN program aims to develop a novel reconnaissance system capable of tactical deployment and operation. Specific advancements are likely to include enhanced sensor capabilities, improved data processing, and a more resilient operational architecture. Success will be measured through rigorous testing and validation of these components against predefined performance benchmarks and mission requirements.
What are 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 are potential cost overruns if the contractor's actual costs exceed estimates, and the government paying a premium for innovation. Diligent oversight is needed to ensure the fixed fee remains appropriate and that the contractor is incentivized to control costs while achieving technical goals.
How does the TERN program's R&D spending align with broader DoD strategic goals for intelligence and surveillance?
The TERN program's R&D spending directly aligns with DoD's strategic goals by seeking to develop next-generation reconnaissance capabilities. This investment aims to enhance situational awareness, provide critical intelligence, and maintain a technological advantage over adversaries in contested environments, supporting overall national security objectives.
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: 34
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: ONE HORNET WAY, EL SEGUNDO, CA, 90245
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,015,248
Exercised Options: $26,948,941
Current Obligation: $26,948,941
Subaward Activity
Number of Subawards: 47
Total Subaward Amount: $52,521,905
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-09-09
Current End Date: 2015-12-31
Potential End Date: 2015-12-31 00:00:00
Last Modified: 2025-04-21
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