DARPA awards Northrop Grumman $41.8M for R&D, highlighting significant investment in advanced physical sciences

Contract Overview

Contract Amount: $41,837,288 ($41.8M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2016-08-18

End Date: 2019-05-17

Contract Duration: 1,002 days

Daily Burn Rate: $41.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 16

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF - DARPA RESEARCH PROJECT.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $41.8 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: IGF::OT::IGF - DARPA RESEARCH PROJECT. Key points: 1. Contract value represents a substantial commitment to research and development in specialized physical sciences. 2. The award to a major defense contractor suggests a focus on complex, high-stakes technological advancement. 3. A definitive contract type indicates a clear scope and established terms for the research project. 4. The duration of the contract points to a long-term research objective requiring sustained effort. 5. The specific NAICS code points to a niche but critical area of scientific inquiry. 6. The exclusion of sources after initial full and open competition warrants further examination of the procurement process.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and the unique requirements of DARPA projects. The total award of $41.8 million over approximately 3 years suggests a significant investment per year, which is typical for advanced research. Without comparable projects or detailed cost breakdowns, a precise value-for-money assessment is difficult. However, the scale of the award indicates a belief in the potential impact of the research.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was initially awarded under full and open competition, but later excluded sources. This suggests that while the initial solicitation aimed for broad participation, subsequent phases or specific requirements led to a more restricted bidding environment. The number of bidders is not explicitly stated, but the 'exclusion of sources' implies a reduction in the competitive pool, potentially impacting price discovery and the range of innovative solutions considered.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price achievable through maximum market participation. It also raises questions about whether the most cost-effective solutions were explored.

Public Impact

The primary beneficiaries are likely the advanced research and development initiatives of DARPA, pushing the boundaries of physical sciences. This contract supports the development of cutting-edge technologies that could have significant national security or scientific implications. The geographic impact is primarily centered in California, where Northrop Grumman's operations are located. The project will likely involve highly skilled scientists, engineers, and researchers, contributing to the specialized workforce in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition after initial full and open bidding raises concerns about potential price inflation and reduced innovation.
The specialized nature of the R&D makes it difficult to benchmark value for money effectively.
Lack of transparency regarding the reasons for excluding sources could obscure potential inefficiencies.

Positive Signals

Award to a reputable contractor like Northrop Grumman suggests a focus on capability and reliability.
The significant funding indicates a high priority placed on the research objectives by DARPA.
The contract's duration allows for in-depth research and development, potentially leading to breakthrough discoveries.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical sciences. The market for such specialized R&D is often dominated by large, established defense contractors with the expertise and infrastructure to handle complex projects. DARPA's funding in this area is crucial for maintaining technological superiority and exploring novel scientific frontiers, often involving significant upfront investment with uncertain but potentially high returns.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Given the nature of advanced R&D and the prime contractor, it is unlikely that small businesses would be directly involved as prime awardees. However, Northrop Grumman may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data. The focus is clearly on large-scale, specialized research capabilities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), ensuring compliance with contract terms and performance standards. DARPA itself would maintain programmatic oversight to ensure research objectives are met. Transparency is moderate, with contract awards being public, but the specifics of research progress and cost justifications may be less accessible due to the sensitive nature of R&D.

Related Government Programs

DARPA Research Projects
Defense R&D Contracts
Northrop Grumman Contracts
Physical Sciences Research
Advanced Technology Development

Risk Flags

Limited competition raises concerns about cost efficiency.
Lack of detailed scope in public data hinders full value assessment.
Potential for cost overruns inherent in CPFF contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.8 million to NORTHROP GRUMMAN SYSTEMS CORP. IGF::OT::IGF - DARPA RESEARCH PROJECT.

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $41.8 million.

What is the period of performance?

Start: 2016-08-18. End: 2019-05-17.

What specific research areas within physical sciences does this contract cover?

The provided data indicates the contract falls under NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. While this is a broad category, it suggests the research likely involves fundamental or applied investigations into areas such as physics, chemistry, materials science, or engineering principles. DARPA's mission often involves exploring high-risk, high-reward concepts that could lead to disruptive technologies. Specific details on the exact research focus would typically be found in the contract's statement of work, which is not publicly available in this dataset.

How does the $41.8 million award compare to other DARPA R&D contracts in physical sciences?

Comparing this $41.8 million award requires access to a broader dataset of DARPA contracts within the physical sciences R&D domain. DARPA funds a wide range of projects, from small, exploratory grants to large, multi-year development efforts. A $41.8 million award over approximately three years suggests a significant, mid-to-large scale project. It is plausible that other DARPA R&D efforts could range from a few million dollars for early-stage research to hundreds of millions for major system development. Without comparative data, it's difficult to definitively label this award as high or low, but its scale indicates a substantial commitment.

What are the potential risks associated with a 'limited competition after exclusion of sources' procurement?

Procuring under 'limited competition after exclusion of sources' carries several risks. Primarily, it can lead to higher costs for taxpayers because the pool of potential bidders is restricted, reducing competitive pressure to offer the lowest price. It may also limit the range of innovative solutions considered, as only a select few contractors are invited to bid. Furthermore, it can raise concerns about fairness and transparency in the procurement process, potentially leading to perceptions of favoritism or a lack of opportunity for qualified but excluded firms. Ensuring the justification for exclusion is robust and documented is critical.

What is the significance of the contract type 'COST PLUS FIXED FEE' (CPFF)?

The 'COST PLUS FIXED FEE' (CPFF) contract type is common in research and development where the scope of work may evolve, and precise costs are difficult to estimate upfront. Under CPFF, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it places the cost risk primarily on the government, as the final cost can exceed initial estimates. For R&D, it balances the need for flexibility with contractor incentive.

What is the historical spending trend for R&D in physical sciences by the Department of Defense?

Historical spending trends for R&D in physical sciences by the Department of Defense (DoD) generally show a consistent and significant investment, driven by national security imperatives and the pursuit of technological superiority. While specific figures fluctuate year-to-year based on strategic priorities and budget allocations, the DoD remains one of the largest government funders of scientific research. Investments often focus on areas like advanced materials, energy, quantum sciences, and fundamental physics, reflecting a long-term commitment to innovation. DARPA, as a key agency within the DoD, plays a crucial role in funding high-risk, high-reward research that may not fit traditional program structures.

What is the track record of Northrop Grumman Systems Corp in performing similar R&D contracts for the government?

Northrop Grumman Systems Corporation is a major aerospace and defense contractor with a long and extensive track record of performing complex research and development contracts for the U.S. government, including DARPA and other defense agencies. They have a demonstrated capability in areas relevant to physical sciences, engineering, and advanced technologies. Their portfolio includes work on advanced materials, sensors, electronic warfare, space systems, and more. While specific performance metrics for individual contracts are not detailed here, their status as a prime contractor on significant R&D efforts like this one suggests a generally positive assessment of their technical expertise and program management capabilities by the government.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 16

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: $43,386,304

Exercised Options: $42,025,663

Current Obligation: $41,837,288

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline