DARPA Research Project Awarded to Northrop Grumman for $31.4M

Contract Overview

Contract Amount: $31,455,562 ($31.5M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2014-10-10

End Date: 2018-01-16

Contract Duration: 1,194 days

Daily Burn Rate: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF DARPA RESEARCH PROJECT (REUBEN).

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $31.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF DARPA RESEARCH PROJECT (REUBEN). Key points: 1. Contract awarded to a large, established defense contractor. 2. Focus on R&D in physical, engineering, and life sciences. 3. Competition method was 'full and open after exclusion of sources', suggesting potential limitations. 4. Sector is Defense, a high-spending area with complex R&D needs.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed tightly. The award amount of $31.4M for a 4-year project needs further benchmarking against similar DARPA research projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition was 'full and open after exclusion of sources', indicating that while open, certain sources were initially excluded. This method might limit the pool of potential bidders and impact price discovery.

Taxpayer Impact: The final taxpayer impact depends on the project's success and whether the fixed fee adequately incentivized efficient performance within the cost ceiling.

Public Impact

Advancement of cutting-edge research in defense technologies. Potential for technological breakthroughs with national security implications. Investment in specialized scientific and engineering expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition method could reduce cost savings.
  • CPFF contract type carries inherent cost overrun risk.
  • Long duration (1194 days) increases exposure to changing requirements or economic conditions.

Positive Signals

  • Awarded to a reputable contractor with defense experience.
  • Focus on critical R&D for national security.
  • Potential for significant technological advancements.

Sector Analysis

This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Defense R&D spending is substantial, with significant government investment in innovation.

Small Business Impact

The data indicates the award went to Northrop Grumman Systems Corporation, a large business. There is no explicit indication of small business participation in this specific contract award.

Oversight & Accountability

Oversight would typically be managed by the Defense Contract Management Agency (DCMA). The effectiveness of oversight depends on the rigor of performance monitoring and financial reviews throughout the contract's lifecycle.

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

  • Potential for cost overruns due to CPFF structure.
  • Limited competition may have resulted in a suboptimal price.
  • Long contract duration increases risk exposure.
  • Lack of transparency on specific research outcomes and performance.

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 $31.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF DARPA RESEARCH PROJECT (REUBEN).

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 $31.5 million.

What is the period of performance?

Start: 2014-10-10. End: 2018-01-16.

What specific research objectives were prioritized under this DARPA project, and how do they align with current national security needs?

The project's specific research objectives are not detailed in the provided data. However, DARPA projects generally aim to develop breakthrough technologies for national security. Alignment with current needs would require examining DARPA's strategic priorities during the 2014-2018 period and the project's stated goals.

How did the 'exclusion of sources' in the competition process impact the final contract price and overall value for the government?

The 'exclusion of sources' implies that not all potential offerors were considered, potentially limiting competition. This could lead to a higher price than if a truly open competition had occurred. Assessing the value requires comparing the final price and deliverables against what might have been achieved with broader competition.

What were the key performance indicators (KPIs) for this CPFF contract, and how effectively was Northrop Grumman meeting them throughout the project duration?

Key performance indicators for a CPFF research contract would typically focus on achieving specific research milestones, technical progress, and adherence to budget. Without access to performance reports or DARPA's internal assessments, it's impossible to determine how effectively Northrop Grumman met these KPIs.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,455,562

Exercised Options: $31,455,562

Current Obligation: $31,455,562

Subaward Activity

Number of Subawards: 88

Total Subaward Amount: $11,891,128

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2014-10-10

Current End Date: 2018-01-16

Potential End Date: 2018-01-16 00:00:00

Last Modified: 2023-09-29

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