DARPA awards Northrop Grumman $20M for R&D project, highlighting full and open competition
Contract Overview
Contract Amount: $20,021,968 ($20.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2017-04-21
End Date: 2020-08-31
Contract Duration: 1,228 days
Daily Burn Rate: $16.3K/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.
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $20.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF DARPA RESEARCH PROJECT. Key points: 1. Significant investment in advanced research and development by DARPA. 2. Northrop Grumman, a major defense contractor, secured the award. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The project falls under the R&D sector, specifically physical, engineering, and life sciences.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The fixed fee component provides some cost certainty, but the overall value needs to be benchmarked against similar R&D projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process where specific sources were initially excluded but the contract was ultimately awarded openly. This method aims for best value and price discovery.
Taxpayer Impact: Taxpayer funds are being invested in advanced R&D, with the expectation of technological advancements. The competitive nature of the award should help ensure a reasonable price for the research.
Public Impact
Advancement of cutting-edge research in physical, engineering, and life sciences. Potential for new technologies that could have significant national security implications. Investment in a major defense contractor, supporting jobs and innovation within the sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can be prone to cost escalation.
- Long contract duration (1228 days) increases risk of scope creep or changing requirements.
- Specific exclusion of sources initially might warrant further scrutiny on the justification.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Significant investment in a critical R&D area for national security.
- Contract awarded to a reputable and experienced defense contractor.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541712. Spending in this sector is crucial for innovation and maintaining technological superiority, often characterized by high upfront investment and uncertain outcomes.
Small Business Impact
The awardee is Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific contract award, which is common for large-scale R&D projects.
Oversight & Accountability
DARPA is known for its rigorous oversight of research projects. The contract's definitive nature and fixed fee component suggest a structured approach to accountability, but ongoing monitoring of progress and spending is essential.
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.
- Potential for limited innovation due to source exclusion.
- Lack of specific detail on project deliverables and success metrics.
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 $20.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF DARPA RESEARCH PROJECT.
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 $20.0 million.
What is the period of performance?
Start: 2017-04-21. End: 2020-08-31.
What specific technological advancements are anticipated from this $20M DARPA research project, and how will their success be measured?
The specific technological advancements are not detailed in the provided data. DARPA projects typically aim for breakthroughs in areas relevant to national security. Success measurement would likely involve predefined milestones, prototype development, and performance testing against specific technical objectives outlined in the contract's statement of work.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient use of taxpayer funds?
While the fixed fee provides a ceiling for the contractor's profit, the 'cost plus' portion requires careful monitoring. Mechanisms likely include detailed cost reporting, regular audits, performance reviews against the statement of work, and potentially incentive clauses tied to cost savings or performance targets. DARPA's program managers play a crucial role in oversight.
How does the 'exclusion of sources' clause in the competition method impact the potential for innovation and the ultimate value for money achieved?
Excluding sources can limit the breadth of innovative approaches considered, potentially leading to a narrower solution set. However, it might be justified if specific expertise or capabilities are required that only a limited number of entities possess. The impact on value for money depends on whether the chosen competitive process still yielded sufficient price discovery and technical merit.
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: 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: $33,535,421
Exercised Options: $20,234,617
Current Obligation: $20,021,968
Actual Outlays: $381,315
Subaward Activity
Number of Subawards: 180
Total Subaward Amount: $37,034,726
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2017-04-21
Current End Date: 2020-08-31
Potential End Date: 2022-07-31 00:00:00
Last Modified: 2025-09-30
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