DARPA awards $171.9M contract to Northrop Grumman for nanotechnology R&D, spanning over 4 years
Contract Overview
Contract Amount: $17,195,736 ($17.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-10-21
End Date: 2027-12-31
Contract Duration: 1,897 days
Daily Burn Rate: $9.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: DARPA RESEARCH PROJECT
Place of Performance
Location: REDONDO BEACH, LOS ANGELES County, CALIFORNIA, 90278
Plain-Language Summary
Department of Defense obligated $17.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DARPA RESEARCH PROJECT Key points: 1. Contract value represents a significant investment in advanced research. 2. Competition dynamics for this specialized R&D are likely limited due to technical expertise required. 3. Performance risk is moderate given the long-term, research-oriented nature of the contract. 4. This contract positions DARPA at the forefront of nanotechnology innovation. 5. Spending aligns with national priorities in advanced materials and defense capabilities.
Value Assessment
Rating: good
The contract value of $171.9 million over approximately 4.5 years suggests a substantial investment in a critical research area. Benchmarking this against similar large-scale R&D contracts within DARPA or other defense agencies would be necessary for a precise value-for-money assessment. However, the cost-plus-fixed-fee structure indicates that while costs are reimbursed, the profit margin is fixed, providing some cost control. The specific nature of nanotechnology research often involves high upfront investment and uncertain outcomes, making direct price comparisons challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified offerors had the opportunity to bid. With 9 bids received, this suggests a healthy level of interest and a competitive process for this advanced research requirement. The presence of multiple bidders is generally positive for price discovery and ensures that the government explores a range of technical approaches and associated costs.
Taxpayer Impact: A competitive process for advanced R&D like this helps ensure taxpayer funds are used efficiently by driving down costs and encouraging innovative solutions.
Public Impact
The primary beneficiaries are the Department of Defense and potentially the broader scientific community through advancements in nanotechnology. Services delivered include cutting-edge research and development in nanotechnology, likely focusing on materials science, microelectronics, or other defense-relevant applications. The geographic impact is centered in California, where Northrop Grumman Systems Corporation is located, but the research outcomes could have national and global implications. Workforce implications include highly skilled jobs for scientists, engineers, and technicians involved in advanced research.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term R&D projects.
- Difficulty in precisely defining and measuring research outcomes upfront.
- Reliance on specialized expertise which may limit future contractor flexibility.
Positive Signals
- Awarded through full and open competition, indicating broad market engagement.
- Northrop Grumman is a major defense contractor with a proven track record in complex R&D.
- Cost-plus-fixed-fee structure provides some level of cost predictability for the government.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on nanotechnology. The market for advanced materials and nanotechnology research is characterized by high barriers to entry, significant intellectual property considerations, and substantial government investment, particularly from defense agencies like DARPA. Comparable spending benchmarks would involve looking at other large-scale R&D contracts awarded by agencies like NSF, DOE, or other branches of the DoD for similar advanced technology development.
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's size, subcontracting opportunities for small businesses may exist, but they are not explicitly mandated by a set-aside. The impact on the small business ecosystem would depend on the specific subcontracting plans developed by Northrop Grumman.
Oversight & Accountability
Oversight for this contract will likely be managed by the Defense Advanced Research Projects Agency (DARPA), a component of the Department of Defense. Accountability measures will be tied to the achievement of research milestones and deliverables outlined in the contract. Transparency is generally maintained through contract awards databases and public reporting, though specific research details may be classified or proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- DARPA Advanced Technology Development Programs
- Department of Defense Research and Development Spending
- National Nanotechnology Initiative
- Advanced Materials Research Contracts
Risk Flags
- Long-term R&D projects carry inherent uncertainty in outcomes and timelines.
- Potential for cost escalation in cost-plus contracts if not rigorously managed.
- Reliance on specialized technical expertise may limit future adaptability.
Tags
research-and-development, nanotechnology, department-of-defense, darpa, northrop-grumman-systems-corporation, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, california, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 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 $17.2 million.
What is the period of performance?
Start: 2022-10-21. End: 2027-12-31.
What is Northrop Grumman's track record with DARPA and similar R&D contracts?
Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in research and development across various domains, including aerospace, defense, and advanced technologies. They have a long-standing relationship with DARPA and have been awarded numerous contracts for complex R&D projects. Their track record typically involves delivering sophisticated technological solutions and managing large-scale, multi-year programs. Specific performance metrics for past DARPA contracts would require deeper analysis of contract performance reports and historical data, but their status as a prime contractor on significant projects indicates a generally positive history of capability and execution in advanced research.
How does the $171.9 million contract value compare to other nanotechnology R&D investments?
The $171.9 million contract value for nanotechnology R&D is substantial and indicative of a significant, long-term research effort. To benchmark this, one would compare it to other large-scale R&D awards within the nanotechnology domain from agencies like the National Science Foundation (NSF), Department of Energy (DOE), or other Department of Defense (DoD) entities. For instance, major university research centers or consortia focused on nanotechnology often receive multi-year grants in the tens to hundreds of millions of dollars. The value suggests DARPA is making a significant bet on Northrop Grumman's proposed approach to advancing nanotechnology capabilities, likely for defense applications.
What are the primary risks associated with this type of cost-plus-fixed-fee R&D contract?
Cost-plus-fixed-fee (CPFF) contracts, while offering some cost control through a fixed fee, carry inherent risks in R&D. A primary risk is that the 'cost' component can escalate if the research proves more complex or time-consuming than initially estimated, even though the contractor's profit (the fee) remains constant. This can lead to budget overruns for the government if not managed tightly. Another risk is the potential for scope creep, where the research objectives evolve significantly, requiring renegotiation of costs. For the contractor, the risk lies in underestimating costs, which could lead to a reduced profit margin if they cannot complete the work within the anticipated cost structure.
How effective is full and open competition for highly specialized R&D like nanotechnology?
Full and open competition is generally considered the most effective method for ensuring fair pricing and broad access to the market. For highly specialized R&D like nanotechnology, it means that any responsible source can submit an offer, encouraging innovation from a wide range of entities. However, the effectiveness can be tempered by the limited number of organizations possessing the requisite expertise and facilities. While 9 bids were received, indicating a competitive landscape, the pool of truly capable offerors for cutting-edge nanotechnology might be smaller than for more common goods or services. Nonetheless, this approach maximizes the chances of finding the best technical solution at a competitive price.
What are the historical spending patterns for DARPA in nanotechnology research?
DARPA has consistently invested in cutting-edge technologies, including nanotechnology, as part of its mission to prevent technological surprise and maintain U.S. military superiority. Historical spending patterns show DARPA allocating significant portions of its budget to R&D initiatives that push the boundaries of science and engineering. Nanotechnology has been a focus area for DARPA for many years, supporting advancements in materials, sensors, microelectronics, and even biological applications. While specific annual figures for nanotechnology can fluctuate based on strategic priorities and program cycles, DARPA's commitment to exploring its potential for defense applications remains a steady theme in its investment portfolio.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in Nanotechnology
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Solicitation ID: HR001122S0017
Offers Received: 9
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: $28,906,360
Exercised Options: $28,906,360
Current Obligation: $17,195,736
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $9,014,223
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-10-21
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2025-11-26
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