DoD's $26M TRITON Electronic Protection Enhancements contract with Northrop Grumman faces scrutiny over R&D value and competition

Contract Overview

Contract Amount: $26,017,442 ($26.0M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2019-06-17

End Date: 2024-11-20

Contract Duration: 1,983 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 99

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TRITON ELECTRONIC PROTECTION ENHANCEMENTS (TEPE)

Place of Performance

Location: BALTIMORE, BALTIMORE County, MARYLAND, 21209

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TRITON ELECTRONIC PROTECTION ENHANCEMENTS (TEPE) Key points: 1. The $26M contract for R&D in physical sciences lacks clear performance metrics, raising questions about value for money. 2. Northrop Grumman, a major defense contractor, secured this contract under full and open competition. 3. Potential risks include cost overruns due to the Cost Plus Fixed Fee structure and the long duration. 4. The R&D sector, particularly in physical sciences, often involves inherent uncertainty, making upfront value assessment challenging.

Value Assessment

Rating: questionable

The contract's value is difficult to assess without specific deliverables and performance benchmarks. The Cost Plus Fixed Fee structure, while common in R&D, can lead to costs exceeding initial estimates if not tightly managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing strategies and how they were evaluated against other proposals are not detailed, impacting transparency on price discovery.

Taxpayer Impact: The ultimate taxpayer impact depends on the successful development of the electronic protection enhancements and their cost-effectiveness in future defense applications.

Public Impact

Advanced electronic protection systems are critical for national security, potentially enhancing warfighter safety and mission success. The long contract duration (nearly 5 years) suggests a complex and potentially lengthy research and development process. Investment in R&D by the Department of Defense aims to maintain technological superiority, but success is not guaranteed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific performance metrics
  • Cost Plus Fixed Fee structure
  • Long contract duration
  • Ambiguous R&D deliverables

Positive Signals

  • Awarded under full and open competition
  • Potential for critical technology development

Sector Analysis

This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Spending in this sector is crucial for innovation but carries inherent risks and long development cycles, making it challenging to benchmark against typical procurement contracts.

Small Business Impact

The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of small business participation or subcontracting in the provided data.

Oversight & Accountability

Oversight will be critical to ensure Northrop Grumman meets the R&D objectives within the allocated budget and timeline. Regular reviews of progress and cost expenditures are essential for accountability.

Related Government Programs

  • Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Lack of defined deliverables
  • Potential for cost overruns
  • Long contract duration
  • Uncertainty of R&D outcomes
  • Limited transparency on pricing evaluation

Tags

research-and-development-in-the-physical, department-of-defense, md, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TRITON ELECTRONIC PROTECTION ENHANCEMENTS (TEPE)

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 Navy).

What is the total obligated amount?

The obligated amount is $26.0 million.

What is the period of performance?

Start: 2019-06-17. End: 2024-11-20.

What specific technological advancements are expected from these electronic protection enhancements, and how will their success be measured?

The provided data lacks specific details on the expected technological advancements or the metrics for measuring success. Typically, R&D contracts should outline key performance indicators, prototypes, or test results that define successful completion. Without these, assessing the true value and effectiveness of the $26M investment is challenging for oversight bodies and taxpayers.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate potential cost overruns and ensure fiscal responsibility?

The Cost Plus Fixed Fee (CPFF) structure inherently carries a risk of cost overruns. Effective mitigation requires robust government oversight, including detailed cost tracking, regular audits, and strict adherence to the fixed fee component. The Department of Defense must actively manage the contractor's spending and ensure that all costs are reasonable, allocable, and necessary for the R&D effort.

How does the anticipated outcome of this R&D project align with the Department of the Navy's long-term strategic goals for electronic warfare and defense capabilities?

The alignment of this R&D project with strategic goals is not explicitly detailed. However, investments in electronic protection enhancements generally support the Navy's need to counter evolving threats in the electromagnetic spectrum. The success of this project could significantly bolster the Navy's electronic warfare capabilities, contributing to overall force protection and mission effectiveness in contested environments.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001419SB001

Offers Received: 99

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: $41,736,826

Exercised Options: $41,736,826

Current Obligation: $26,017,442

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $2,442,129

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2019-06-17

Current End Date: 2024-11-20

Potential End Date: 2024-11-20 00:00:00

Last Modified: 2023-09-20

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