Northrop Grumman's $24.7M Glide Breaker contract aims to develop tech for advanced interceptors against hypersonic threats

Contract Overview

Contract Amount: $24,671,558 ($24.7M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2020-01-24

End Date: 2024-04-19

Contract Duration: 1,547 days

Daily Burn Rate: $15.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: GLIDE BREAKER PROGRAM, GLIDE BREAKER WILL DEVELOP AN ENABLING TECHNOLOGY CRITICAL FOR AN ADVANCED INTERCEPTOR CAPABLE OF DEFEATING HYPERSONIC VEHICLES.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $24.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: GLIDE BREAKER PROGRAM, GLIDE BREAKER WILL DEVELOP AN ENABLING TECHNOLOGY CRITICAL FOR AN ADVANCED INTERCEPTOR CAPABLE OF DEFEATING HYPERSONIC VEHICLES. Key points: 1. This contract focuses on developing enabling technology for advanced interceptors, a critical capability for national defense. 2. The project addresses the growing threat posed by hypersonic vehicles, a key area of military modernization. 3. Northrop Grumman Systems Corporation, a major defense contractor, is performing the work. 4. The contract is a Cost Plus Fixed Fee type, indicating potential for cost overruns but also flexibility in R&D. 5. The duration of the contract is substantial, spanning over 1500 days, suggesting a complex and long-term development effort. 6. The specific R&D area is 'Research and Development in the Physical, Engineering, and Life Sciences', highlighting the scientific nature of the project.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging due to its unique focus on enabling technology for advanced interceptors. The Cost Plus Fixed Fee (CPFF) structure means costs can fluctuate, making direct price comparisons difficult without detailed cost breakdowns. However, the significant investment reflects the perceived criticality of developing defenses against hypersonic threats. The contract's value should be assessed against the potential cost of not developing such capabilities and the success of the technological advancements achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple capable vendors had the opportunity to bid. The presence of 6 bidders indicates a competitive environment for this specialized R&D effort. This level of competition is generally favorable for price discovery and ensuring that the government receives competitive proposals for complex technological development.

Taxpayer Impact: Full and open competition helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

The primary beneficiaries are the Department of Defense and national security, through the development of advanced interceptor capabilities. The services delivered involve cutting-edge research and development in physical sciences and engineering. The geographic impact is primarily within the United States, with Northrop Grumman Systems Corporation based in California. Workforce implications include highly skilled scientists, engineers, and technicians involved in advanced defense technology development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher final costs if not managed diligently.
The long duration of the contract increases the risk of scope creep or evolving technological requirements.
The specialized nature of the R&D may limit the number of truly competitive bidders in the future.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Focus on a critical national security need (hypersonic defense) suggests strategic importance.
Involves a major defense contractor with a track record in advanced systems development.

Sector Analysis

This contract falls within the Defense Research and Development sector, specifically focusing on advanced missile defense technologies. The market for such specialized R&D is dominated by a few large defense contractors with the requisite expertise and security clearances. Spending in this area is driven by geopolitical threats and the need for technological superiority. Comparable spending benchmarks would likely be found in other advanced weapons system development programs within the Department of Defense.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The nature of advanced R&D for critical defense systems often requires specialized capabilities and infrastructure typically found in larger corporations. Subcontracting opportunities for small businesses may exist, but they are not explicitly mandated by the contract's primary award structure.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Advanced Research Projects Agency (DARPA). As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure that costs remain within reasonable bounds and that milestones are met. Transparency is typically managed through regular reporting requirements and program reviews. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Advanced Weapons Development
Hypersonic Technology Research
Interceptor Development Programs
Department of Defense R&D Initiatives

Risk Flags

Cost Overrun Risk (CPFF contract type)
Technological Uncertainty (R&D focus)
Long Program Duration
Dependency on Future System Integration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. GLIDE BREAKER PROGRAM, GLIDE BREAKER WILL DEVELOP AN ENABLING TECHNOLOGY CRITICAL FOR AN ADVANCED INTERCEPTOR CAPABLE OF DEFEATING HYPERSONIC VEHICLES.

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 $24.7 million.

What is the period of performance?

Start: 2020-01-24. End: 2024-04-19.

What is Northrop Grumman Systems Corporation's track record with similar advanced R&D contracts for DARPA?

Northrop Grumman Systems Corporation has a significant track record with DARPA and other defense agencies on complex R&D programs. They are a prime contractor on numerous advanced technology development efforts, including those related to aerospace, defense systems, and strategic capabilities. Their experience often involves developing cutting-edge technologies that require deep scientific and engineering expertise. While specific details of past DARPA contracts are often sensitive, their consistent selection for high-priority programs suggests a strong performance history and a trusted relationship with the agency. This background provides a degree of confidence in their ability to execute the Glide Breaker program, though each contract's success is subject to its unique challenges and management.

How does the $24.7 million value compare to other R&D contracts for interceptor technology?

The $24.7 million value for the Glide Breaker program is a moderate investment for an enabling technology development contract within the defense sector, particularly for a program addressing a high-priority threat like hypersonics. Contracts for full system development or production of advanced interceptors can easily run into hundreds of millions or billions of dollars. However, R&D contracts focused on specific technological components or foundational research can range from a few million to tens of millions. This contract's value appears aligned with developing a critical enabling technology, rather than a complete system. Benchmarking requires comparing it to other DARPA or DoD contracts specifically for 'enabling technologies' or 'component development' for advanced missile defense systems, which often fall within this approximate value range.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, like the Glide Breaker program, revolve around cost control and potential for overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. If the R&D proves more complex or time-consuming than initially estimated, the total costs incurred by the government can increase significantly, even though the fixed fee remains constant. This necessitates robust government oversight to monitor expenditures, ensure cost allowability, and manage the scope of work effectively. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee is sufficient profit for the effort expended.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' classification imply for the contract's objectives?

The classification 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)' indicates that the Glide Breaker program is focused on fundamental scientific inquiry and applied engineering solutions within these broad domains. For this specific contract, it implies the development will likely involve advanced physics principles, material science, aerodynamic engineering, control systems, and potentially sensor technology, all aimed at creating a novel capability for intercepting hypersonic vehicles. The exclusion of nanotechnology and biotechnology suggests the core innovation is not expected to stem from those specific fields, but rather from more traditional engineering and physical science disciplines applied to a new challenge.

How does the contract's duration (1547 days) impact the assessment of its success and value?

The contract's duration of approximately 1547 days (over 4 years) suggests a complex, long-term research and development effort. This extended timeline is not unusual for cutting-edge defense technology programs where innovation cycles can be lengthy and require iterative development and testing. A longer duration increases the potential for technological breakthroughs but also elevates risks related to evolving threat landscapes, changing program priorities, and potential cost escalation if not managed tightly. Assessing the contract's value requires evaluating the progress made against milestones throughout this period, rather than solely at its conclusion. Successful completion within this timeframe, delivering the intended enabling technology, would justify the investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HR001119S0008

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: $24,671,558

Exercised Options: $24,671,558

Current Obligation: $24,671,558

Subaward Activity

Number of Subawards: 69

Total Subaward Amount: $16,325,008

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline