DARPA's SHIELD Program Awards Northrop Grumman $21.5M for Supply Chain Hardware Integrity

Contract Overview

Contract Amount: $21,514,420 ($21.5M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2015-01-13

End Date: 2019-10-31

Contract Duration: 1,752 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 20

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF DARPA RESEARCH PROJECT UNDER THE SUPPLY CHAIN HARDWARE INTEGRITY FOR ELECTRONICS DEFENSE (SHIELD) PROGRAM. THE SHIELD PROGRAM OBJECTIVE IS TO DEVELOP AN ADVANCED SUPPLY CHAIN HARDWARE AUTHENTICATION SYSTEM AND A CAPABILITY THAT CAN DETECT COUNTERFEIT ELECTRONIC COMPONENTS ANYWHERE IN THE SUPPLY CHAIN.

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF DARPA RESEARCH PROJECT UNDER THE SUPPLY CHAIN HARDWARE INTEGRITY FOR ELECTRONICS DEFENSE (SHIELD) PROGRAM. THE SHIELD PROGRAM OBJECTIVE IS TO DEVELOP AN ADVANCED SUPPLY CHAIN HARDWARE AUTHENTICATION SYSTEM AND A CAPABILITY THAT CAN DETECT COUNTERFEIT ELECTRONIC COMPO… Key points: 1. Focuses on detecting counterfeit electronic components within the defense supply chain. 2. Northrop Grumman, a major defense contractor, is the awardee. 3. The project aims to enhance hardware authentication and integrity. 4. This falls under Research and Development in Physical, Engineering, and Life Sciences. 5. The contract was awarded under full and open competition.

Value Assessment

Rating: good

The contract value of $21.5M for a 4-year R&D project appears reasonable given the complexity of supply chain security and the need for advanced authentication systems. Benchmarking against similar large-scale R&D efforts in defense electronics would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust process for soliciting proposals and selecting the best value. This method generally leads to more competitive pricing and innovation.

Taxpayer Impact: The investment aims to protect taxpayer funds by ensuring the integrity of critical defense electronics, preventing costs associated with counterfeit components and potential system failures.

Public Impact

Enhances national security by safeguarding the defense supply chain from counterfeit parts. Supports technological advancement in hardware authentication and cybersecurity. Aims to reduce the risk of compromised electronic systems in critical defense applications. Promotes innovation in the defense industrial base for supply chain resilience.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns in complex R&D projects.
  • Long-term effectiveness of detection systems requires continuous updates.
  • Dependency on a single contractor for critical technology development.

Positive Signals

  • Addresses a critical national security vulnerability.
  • Utilizes a competitive procurement process.
  • Focuses on cutting-edge technological solutions.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority in defense, with significant government investment directed towards innovation and advanced capabilities.

Small Business Impact

While the primary awardee is Northrop Grumman, a large corporation, the nature of R&D projects often involves subcontracting opportunities for specialized small businesses in areas like component testing, software development, or material science.

Oversight & Accountability

The Department of Defense, through its agencies like DARPA and DCMA, typically has robust oversight mechanisms for R&D contracts to ensure progress, manage costs, and verify deliverables. Regular reporting and milestone reviews are standard.

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

  • Complexity of R&D projects can lead to schedule delays and cost overruns.
  • The evolving nature of counterfeit technology requires continuous system adaptation.
  • Potential for reliance on a single prime contractor for critical technology.
  • Ensuring widespread adoption and integration across diverse defense systems.
  • Measuring the true return on investment for advanced R&D.

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 $21.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF DARPA RESEARCH PROJECT UNDER THE SUPPLY CHAIN HARDWARE INTEGRITY FOR ELECTRONICS DEFENSE (SHIELD) PROGRAM. THE SHIELD PROGRAM OBJECTIVE IS TO DEVELOP AN ADVANCED SUPPLY CHAIN HARDWARE AUTHENTICATION SYSTEM AND A CAPABILITY THAT CAN DETECT COUNTERFEIT ELECTRONIC COMPONENTS ANYWHERE IN THE SUPPLY CHAIN.

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 $21.5 million.

What is the period of performance?

Start: 2015-01-13. End: 2019-10-31.

What is the projected long-term cost savings from implementing the SHIELD program's authentication system?

The long-term cost savings are anticipated to be substantial, stemming from the reduced procurement of counterfeit components, avoidance of system failures due to faulty parts, and decreased costs associated with remediation and security breaches. Quantifying this requires detailed analysis of current counterfeit rates and their associated costs.

How will the effectiveness of the SHIELD system be measured against evolving counterfeit techniques?

Effectiveness will likely be measured through rigorous testing and validation protocols, including simulated attacks and real-world component analysis. The program will need to incorporate adaptive learning mechanisms and continuous updates to counter emerging counterfeit methods, with performance metrics tied to detection rates and false positive/negative rates.

What are the potential risks if the SHIELD program fails to detect sophisticated counterfeit components?

Failure to detect sophisticated counterfeit components poses significant risks to national security, potentially leading to compromised weapon systems, unreliable electronic devices, and vulnerabilities in critical infrastructure. This could result in mission failures, loss of life, and erosion of trust in defense technology, necessitating costly and time-consuming replacements or redesigns.

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: 20

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: $21,611,352

Exercised Options: $21,611,352

Current Obligation: $21,514,420

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2015-01-13

Current End Date: 2019-10-31

Potential End Date: 2019-10-31 00:00:00

Last Modified: 2024-09-17

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