DoD's $1.54B MACE AESA Transceiver System Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $15,418,946 ($15.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-07-10
End Date: 2026-01-15
Contract Duration: 1,285 days
Daily Burn Rate: $12.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 999
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: MULTI-BEAM ARRAY FOR COOPERATIVE ENGAGEMENT (MACE) IS AN ADVANCED ACTIVE ELECTRONIC STEERED APERTURE (AESA) TRANSCEIVER SYSTEM FOR THE SHIPBOARD APPLICATION A NEXT GENERATION MULTI-BEAM ARRAY FOR COOPERATIVE ENGAGEMENT TRANSCEIVER ARRAY SYSTEM PROTO
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $15.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MULTI-BEAM ARRAY FOR COOPERATIVE ENGAGEMENT (MACE) IS AN ADVANCED ACTIVE ELECTRONIC STEERED APERTURE (AESA) TRANSCEIVER SYSTEM FOR THE SHIPBOARD APPLICATION A NEXT GENERATION MULTI-BEAM ARRAY FOR COOPERATIVE ENGAGEMENT TRANSCEIVER ARRAY SYSTEM PROTO Key points: 1. This contract focuses on advanced AESA transceiver systems for naval applications, indicating a significant investment in next-generation radar technology. 2. Northrop Grumman, a major defense contractor, secured this award, highlighting its continued role in supplying critical defense systems. 3. The contract's 'Research and Development' classification suggests a focus on innovation and future capabilities rather than immediate deployment. 4. The substantial value points to the complexity and strategic importance of the MACE system for naval operations.
Value Assessment
Rating: questionable
The contract is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed tightly. Benchmarking is difficult without specific unit details, but the overall value suggests a high per-unit cost for advanced R&D.
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 CPFF structure may offer less price discovery compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds are supporting advanced R&D in defense technology, aiming for future capability enhancement. The CPFF structure necessitates close oversight to ensure cost efficiency.
Public Impact
Enhances naval radar capabilities with advanced AESA technology. Supports technological advancement in electronic warfare and surveillance. Potential for spin-off technologies benefiting other sectors. Contributes to national security through improved defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure requires diligent oversight to control spending.
- Long duration (over 4 years) increases risk of scope creep or changing technological needs.
- R&D focus means outcomes are not guaranteed, impacting immediate value realization.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Utilizes advanced AESA technology, positioning for future defense needs.
- Significant investment indicates high strategic priority for the Navy.
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences. Defense R&D spending is a significant portion of the federal budget, with AESA technology representing a key area of investment for maintaining technological superiority.
Small Business Impact
The data does not indicate specific subcontracting goals for small businesses. Large prime contractors like Northrop Grumman are expected to have small business subcontracting plans, but direct participation is not detailed here.
Oversight & Accountability
The Cost Plus Fixed Fee structure necessitates robust oversight from the Department of the Navy to monitor costs, ensure progress aligns with objectives, and prevent inefficiencies. Regular reporting and audits are crucial.
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
- Cost Overruns
- Technological Obsolescence
- Schedule Delays
- Unproven Technology
- Contractor Performance Risk
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 $15.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. MULTI-BEAM ARRAY FOR COOPERATIVE ENGAGEMENT (MACE) IS AN ADVANCED ACTIVE ELECTRONIC STEERED APERTURE (AESA) TRANSCEIVER SYSTEM FOR THE SHIPBOARD APPLICATION A NEXT GENERATION MULTI-BEAM ARRAY FOR COOPERATIVE ENGAGEMENT TRANSCEIVER ARRAY SYSTEM PROTO
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 $15.4 million.
What is the period of performance?
Start: 2022-07-10. End: 2026-01-15.
What is the projected return on investment for this R&D expenditure, considering the long development cycle and potential for technological obsolescence?
Quantifying ROI for R&D is inherently challenging due to the uncertainty of outcomes and future market needs. The Navy likely assesses value based on strategic advantage, enhanced operational capabilities, and potential deterrence. The long cycle requires continuous evaluation against evolving threats and technological advancements to ensure continued relevance and justify the investment.
How will the performance and cost-effectiveness of the MACE system be validated post-development, especially given the CPFF contract type?
Validation will likely involve rigorous testing, simulations, and operational assessments during and after development. The CPFF structure requires the Navy to closely scrutinize contractor expenditures and performance metrics. Post-development, the system's effectiveness will be measured against defined operational requirements and compared to alternative solutions or existing capabilities to ensure value for money.
What are the key performance indicators (KPIs) being used to track the success of this research and development effort?
Key performance indicators likely include metrics related to radar range, resolution, target detection capabilities, electronic countermeasure resistance, system reliability, and integration with existing naval platforms. Success will also be measured by adherence to development milestones and budget constraints, though the CPFF structure allows for flexibility in costs if justified by technical progress.
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: BASIC RESEARCH
Solicitation ID: N0001421SSN13
Offers Received: 999
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: $15,418,946
Exercised Options: $15,418,946
Current Obligation: $15,418,946
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $6,667
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-07-10
Current End Date: 2026-01-15
Potential End Date: 2026-01-15 00:00:00
Last Modified: 2025-09-23
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