DoD awards $58.7M for Long Range Radar development to Northrop Grumman under full and open competition
Contract Overview
Contract Amount: $58,678,507 ($58.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2015-05-29
End Date: 2021-12-30
Contract Duration: 2,407 days
Daily Burn Rate: $24.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF AWARD OF TASK ORDER KZ01 (REQUEST FOR TASK EXECUTION PLAN: R2 3G-0823) LONG RANGE RADAR (LRR) DEVELOPMENT SYNTHETIC APERTURE RADAR/GROUND MOVING TARGET INDICATOR (SAR/GMTI)
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $58.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF AWARD OF TASK ORDER KZ01 (REQUEST FOR TASK EXECUTION PLAN: R2 3G-0823) LONG RANGE RADAR (LRR) DEVELOPMENT SYNTHETIC APERTURE RADAR/GROUND MOVING TARGET INDICATOR (SAR/GMTI) Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for LRR development. 2. Significant investment in advanced radar technology for the Department of the Army. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans over 2000 days, indicating a long-term development effort.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost certainty. Benchmarking against similar complex engineering development contracts is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price for taxpayers, although the Cost Plus Fixed Fee structure warrants close monitoring to prevent excessive costs.
Public Impact
Enhances national defense capabilities with advanced radar technology. Supports technological advancement in the defense sector. Potential for job creation within the defense industry. Long-term project may lead to follow-on contracts and sustainment efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long duration of contract increases risk of scope creep and cost escalation.
- Lack of specific performance metrics makes it difficult to assess value for money.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Development of critical Long Range Radar technology.
- Experienced contractor, Northrop Grumman Systems Corporation.
Sector Analysis
This contract falls within Engineering Services, specifically related to advanced defense technology. Spending in this sector is driven by national security needs and technological innovation. Benchmarks for similar large-scale radar development projects are highly variable due to unique technical requirements.
Small Business Impact
The prime contractor is Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in the provided data, which could be an area for further investigation to ensure small business utilization.
Oversight & Accountability
The contract's long duration and Cost Plus Fixed Fee structure necessitate robust oversight from the Department of Defense to ensure cost control and adherence to technical specifications. Regular performance reviews and audits will be crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (over 6 years).
- Potential for cost escalation.
- Lack of specific performance metrics in award data.
- No clear indication of small business participation.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF AWARD OF TASK ORDER KZ01 (REQUEST FOR TASK EXECUTION PLAN: R2 3G-0823) LONG RANGE RADAR (LRR) DEVELOPMENT SYNTHETIC APERTURE RADAR/GROUND MOVING TARGET INDICATOR (SAR/GMTI)
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $58.7 million.
What is the period of performance?
Start: 2015-05-29. End: 2021-12-30.
What specific performance improvements or capabilities will the Long Range Radar development deliver compared to existing systems?
The provided data does not specify the exact performance improvements or new capabilities the Long Range Radar development will deliver. Further details on the technical specifications and objectives of the SAR/GMTI system are needed to assess its advancement over current radar technologies and its strategic value.
How will the Cost Plus Fixed Fee structure be managed to mitigate potential cost overruns and ensure fair pricing?
Effective management of the Cost Plus Fixed Fee structure requires stringent oversight, detailed cost tracking, and regular audits by the Department of Defense. Clear definition of the fixed fee, robust negotiation of indirect cost rates, and performance-based incentives can help control costs and ensure the government receives good value for its investment.
What is the projected return on investment or strategic advantage gained from this $58.7 million expenditure on radar development?
The strategic advantage lies in enhancing the Department of the Army's intelligence, surveillance, and reconnaissance capabilities through advanced Long Range Radar technology. Quantifying the ROI is challenging without knowing the specific threats it mitigates or the operational efficiencies it enables. Its value is primarily in bolstering national security.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 2340 DULLES CORNER BOULEVARD, HERNDON, VA, 20171
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: $64,540,037
Exercised Options: $60,905,042
Current Obligation: $58,678,507
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T10DD408
IDV Type: IDC
Timeline
Start Date: 2015-05-29
Current End Date: 2021-12-30
Potential End Date: 2021-12-30 12:12:00
Last Modified: 2022-07-07
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