Northrop Grumman awarded $17.8M contract for R&D in physical, engineering, and life sciences by the Office of Naval Research

Contract Overview

Contract Amount: $17,781,463 ($17.8M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2005-06-09

End Date: 2007-07-09

Contract Duration: 760 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200510!004194!1700!N00014!OFFICE OF NAVAL RESEARCH !N0001405C0203 !A!N! !N! ! !20050609!20061208!800131955!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!1580B W NURSERY RD, MS B58!LINTHICUM HEIG !MD!21090!47150!003!24!LINTHICUM HEIGHTS !ANNE ARUNDEL !MARYLAND !+000002500000!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !000 !* !541710!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!U!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1714!N00014!0001! !

Place of Performance

Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200510!004194!1700!N00014!OFFICE OF NAVAL RESEARCH !N0001405C0203 !A!N! !N! ! !20050609!20061208!800131955!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!1580B W NURSERY RD, MS B58!LINTHICUM HEIG !MD!21090!47150!003!24!LINTHICUM HEIGHTS !ANNE… Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract's value of $17.8M falls within a moderate spending range for R&D services. 3. Performance period of approximately two years indicates a focused research initiative. 4. The contractor, Northrop Grumman, is a major defense and aerospace company with extensive experience. 5. The specific NAICS code (541710) points to research and development in physical, engineering, and life sciences. 6. The contract type (Cost Plus Fixed Fee) suggests potential for cost overruns if not managed carefully.

Value Assessment

Rating: good

The contract value of $17.8 million for research and development services appears reasonable given the contractor's profile and the nature of R&D work. Benchmarking against similar contracts for advanced scientific research by major defense contractors would provide a more precise value-for-money assessment. However, the fixed fee component suggests a degree of cost control, though the 'cost plus' element inherently carries some risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The open competition suggests the government sought the best value proposition from the market.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government explored multiple options to secure the best research capabilities.

Public Impact

The primary beneficiary is the Office of Naval Research, which will receive advanced research and development services. The services delivered are expected to advance scientific and technological capabilities within the physical, engineering, and life sciences domains. The geographic impact is primarily within the United States, with potential for broader national security implications. Workforce implications include employment opportunities for scientists, engineers, and support staff at Northrop Grumman.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to higher costs if the contractor's expenses exceed initial estimates.
The duration of the contract (approx. 2 years) may limit the scope of long-term research objectives.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Contractor is a well-established entity with a strong track record in defense and aerospace.
The contract focuses on critical R&D areas for naval applications.

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, supporting advancements in materials, propulsion, sensors, and other technologies. The market for defense R&D is dominated by large aerospace and defense contractors, with significant government investment driven by national security needs. Comparable spending benchmarks would typically be found within the broader Department of Defense R&D budget, which runs into billions annually.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of the R&D and the prime contractor, it is likely that any small business involvement would be through subcontracting opportunities. The extent of small business participation will depend on Northrop Grumman's subcontracting plan and the specific technical requirements of the research.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). Accountability measures are embedded in the contract terms, including reporting requirements and deliverables. Transparency is facilitated through contract databases like FPDS, though detailed R&D project specifics may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Research Programs
Department of Defense Research and Development
Advanced Technology Development Contracts
Aerospace and Defense Research

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Limited detail on specific research objectives and deliverables in summary data.
Potential for scope creep in R&D projects if not tightly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200510!004194!1700!N00014!OFFICE OF NAVAL RESEARCH !N0001405C0203 !A!N! !N! ! !20050609!20061208!800131955!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!1580B W NURSERY RD, MS B58!LINTHICUM HEIG !MD!21090!47150!003!24!LINTHICUM HEIGHTS !ANNE ARUNDEL !MARYLAND !+000002500000!N!N!000000000000!AD92!RDTE/OTHER DEFENSE-APPLIED RESEARCH !S1 !SERVICES !000 !* !541710!E! !3! ! ! ! ! !202

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $17.8 million.

What is the period of performance?

Start: 2005-06-09. End: 2007-07-09.

What specific research areas within physical, engineering, and life sciences are covered by this contract?

The provided data indicates the contract falls under NAICS code 541710, which covers Research and Development in the Physical, Engineering, and Life Sciences. While the specific sub-disciplines are not detailed in the summary data, this broad category encompasses a wide range of scientific inquiry. For the Office of Naval Research, this could include areas such as advanced materials science, naval architecture and marine engineering, robotics, artificial intelligence, sensor technology, human systems integration, biotechnology, and environmental science relevant to naval operations. A deeper dive into the contract's statement of work would be necessary to identify the precise research objectives and technical focus.

How does the $17.8 million award compare to typical R&D spending for similar projects within the Navy?

The $17.8 million award for this R&D contract is a moderate sum within the context of large-scale defense research and development. The Department of Defense, and specifically the Navy, invests billions annually in R&D. Individual research projects can range from a few million dollars for focused studies to hundreds of millions for major technology development programs. This contract's value suggests a significant but not exceptionally large research initiative. To provide a precise comparison, one would need to analyze the specific technical scope of work and benchmark it against other contracts for similar research areas, considering factors like project duration, complexity, and the maturity of the technology being investigated.

What is Northrop Grumman's track record with the Office of Naval Research and similar government contracts?

Northrop Grumman Systems Corporation is a major defense contractor with a long-standing relationship with the U.S. military, including the Navy and the Office of Naval Research (ONR). They have a proven track record in delivering complex systems and conducting advanced research across various domains, including aerospace, defense electronics, and information systems. While this specific contract data doesn't detail their past performance with ONR, their status as a prime contractor on numerous large-value government contracts suggests a generally positive performance history. However, a comprehensive assessment would require reviewing past performance evaluations and any documented issues on previous ONR or DoD contracts.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded here, involve the contractor being reimbursed for allowable costs plus a fixed fee representing profit. The primary risk for the government is that the contractor's actual costs may exceed initial estimates, potentially leading to a higher final contract price than anticipated, although the fee itself is fixed. This can occur in R&D where the scope or technical challenges may evolve. Effective oversight, rigorous cost monitoring, and clear definition of allowable costs are crucial to mitigate these risks. The fixed fee provides some incentive for the contractor to control costs, but the 'cost plus' element means the government bears the majority of the cost risk.

How does the competition level (full and open) impact the value received by the government for this R&D contract?

Awarding this contract under 'full and open competition' is generally beneficial for the government. It means that the Office of Naval Research solicited proposals from all responsible sources, allowing for a wider range of potential contractors to compete. This broad competition typically drives down prices, encourages innovation, and increases the likelihood that the government will receive the best overall value in terms of technical approach, performance, and cost. While the specific number of bids isn't provided, the open nature of the competition suggests that the government had multiple options to choose from, enhancing its negotiating position and ensuring that the selected contractor offered a compelling solution.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 1580B W NURSERY RD, MS B58, LINTHICUM HEIG, MD

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline