DARPA awards Northrop Grumman $46.7M for R&D in physical, engineering, and life sciences
Contract Overview
Contract Amount: $46,745,574 ($46.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-01-03
End Date: 2026-11-04
Contract Duration: 1,401 days
Daily Burn Rate: $33.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 18
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: 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 $46.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DARPA RESEARCH PROJECT Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Cost-plus-fixed-fee structure may incentivize cost overruns if not closely monitored. 3. Long duration (1401 days) indicates a complex, multi-phase research effort. 4. Northrop Grumman's extensive defense contracting history suggests technical capability. 5. Focus on R&D in physical, engineering, and life sciences aligns with DARPA's mission. 6. The contract's value is moderate within the context of large-scale defense R&D.
Value Assessment
Rating: good
The contract value of $46.7 million for a 1401-day research and development effort appears reasonable given the scope. While specific benchmarks for this exact type of research are difficult to ascertain without more detail, the cost-plus-fixed-fee structure necessitates careful oversight to ensure value. Compared to other large-scale R&D contracts, this award falls within a typical range for advanced technology development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. This approach generally fosters competitive pricing and allows the government to select the best technical and cost solution. The presence of 18 bids suggests a healthy level of interest and competition for this DARPA research initiative.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures the government receives the best possible value for its investment.
Public Impact
Advances in physical, engineering, and life sciences research, potentially leading to future technological breakthroughs. Benefits the Department of Defense through the development of cutting-edge technologies. Geographic impact is primarily within Maryland, where the contractor's operations are based. Workforce implications include highly skilled researchers, engineers, and technical staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to higher costs if not managed diligently.
- Long contract durations increase the risk of scope creep or changing technological landscapes.
- The specific nature of R&D makes outcomes uncertain and success not guaranteed.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Northrop Grumman is a major defense contractor with a proven track record in complex R&D.
- The contract aligns with DARPA's strategic mission to foster innovation.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation, where agencies like DARPA invest heavily to maintain technological superiority. The market for such specialized R&D services is competitive, involving a mix of large defense contractors and specialized research firms. Comparable spending benchmarks are difficult to pinpoint without knowing the exact research objectives, but significant government investment is typical in this domain.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Northrop Grumman is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors on this project, depending on the specific technical requirements and subcontracting plans developed by the prime.
Oversight & Accountability
Oversight will likely be managed by the Defense Advanced Research Projects Agency (DARPA) program managers and contracting officers. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency may be limited due to the sensitive nature of R&D, but contract award details are publicly available.
Related Government Programs
- DARPA Research Programs
- Department of Defense Research and Development
- Advanced Technology Development Contracts
- Northrop Grumman Defense Contracts
Risk Flags
- Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
- Long contract duration increases potential for scope changes or evolving requirements.
- R&D inherently involves uncertainty in outcomes and timelines.
Tags
research-and-development, department-of-defense, darpa, northrop-grumman, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, physical-sciences, engineering, life-sciences, maryland, moderate-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.7 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 $46.7 million.
What is the period of performance?
Start: 2023-01-03. End: 2026-11-04.
What is Northrop Grumman's track record with DARPA and similar R&D contracts?
Northrop Grumman Systems Corporation is a major aerospace and defense contractor with a long history of performing complex research and development for the U.S. government, including DARPA. They have a substantial portfolio of contracts across various scientific and engineering disciplines. While specific performance metrics for past DARPA R&D efforts are often not publicly detailed, their consistent selection for large, advanced technology programs suggests a strong capability and a generally positive track record in delivering on technical objectives. Their experience likely includes managing cost-plus-fixed-fee contracts and navigating the inherent uncertainties of cutting-edge research.
How does the $46.7 million award compare to other DARPA R&D contracts?
The $46.7 million award for this 1401-day research effort is within a moderate range for DARPA contracts. DARPA funds a wide spectrum of projects, from smaller, exploratory efforts costing a few million dollars to large, multi-year programs exceeding hundreds of millions. This particular contract's value suggests a significant, but not exceptionally large, undertaking. It aligns with DARPA's strategy of investing in high-risk, high-reward research that pushes technological boundaries. Without knowing the specific technical domain, direct comparison is challenging, but the funding level is consistent with substantial R&D initiatives.
What are the primary risks associated with this cost-plus-fixed-fee contract structure?
The primary risk with a Cost-Plus-Fixed-Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs plus a predetermined fixed fee. This can lead to cost overruns if the government's oversight is not rigorous. For R&D, where costs can be unpredictable, CPFF is often used to encourage innovation without the contractor bearing excessive financial risk. However, effective government oversight, detailed cost tracking, and clear performance milestones are crucial to mitigate the risk of inflated expenses and ensure value for taxpayer money.
What does the 'Research and Development in the Physical, Engineering, and Life Sciences' category entail?
This NAICS code (541715) covers establishments primarily engaged in conducting research and development in the physical, engineering, and life sciences, excluding nanotechnology and biotechnology. This broad category encompasses a vast array of scientific inquiry, including but not limited to materials science, advanced manufacturing, robotics, artificial intelligence (in its physical/engineering applications), environmental science, and various branches of biology and chemistry not specifically classified under nanotechnology or biotechnology. DARPA often funds research within this category to explore foundational scientific principles and develop novel technologies with potential military applications.
What is the significance of the 18 bids received for this contract?
Receiving 18 bids for a research and development contract, especially one awarded under full and open competition, is a strong indicator of a healthy and competitive market for the services sought by DARPA. It suggests that the agency clearly defined its requirements and that a significant number of qualified companies were interested and capable of undertaking the work. This level of competition typically benefits the government by providing a wider range of technical approaches and potentially more favorable pricing, increasing the likelihood of selecting the best overall value.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HR001122S0016
Offers Received: 18
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1580B 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: $48,732,323
Exercised Options: $48,732,323
Current Obligation: $46,745,574
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $7,302
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-01-03
Current End Date: 2026-11-04
Potential End Date: 2026-11-04 00:00:00
Last Modified: 2025-10-30
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