DoD Awards Northrop Grumman $6.59M for Enhanced Capability Research in Florida

Contract Overview

Contract Amount: $6,590,000 ($6.6M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2024-06-17

End Date: 2026-10-16

Contract Duration: 851 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ENHANCED CAPABILITY & OPERABILITY

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32904

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $6.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ENHANCED CAPABILITY & OPERABILITY Key points: 1. Significant R&D investment in physical sciences. 2. Northrop Grumman, a major defense contractor, secured the award. 3. Potential for technological advancements in defense capabilities. 4. Focus on research and development suggests long-term strategic goals.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the work.

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 discovery mechanisms for this type of R&D are not detailed.

Taxpayer Impact: Taxpayer funds are supporting advanced research, with the ultimate benefit depending on the successful development of enhanced capabilities.

Public Impact

Advancement of defense technology. Potential for job creation in Florida's aerospace sector. Investment in scientific and engineering innovation.

Waste & Efficiency Indicators

Waste Risk Score: 77 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type can lead to cost uncertainty.
  • Limited transparency on specific performance metrics and deliverables.

Positive Signals

  • Awarded under full and open competition.
  • Supports critical research and development for national security.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for maintaining technological superiority but can be subject to long development cycles and uncertain outcomes.

Small Business Impact

The data indicates this contract was not awarded to small businesses, suggesting large prime contractors are involved in this specific R&D effort.

Oversight & Accountability

Oversight will be critical to ensure the efficient use of funds and the successful achievement of research objectives within the defined timeline.

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 overrun potential
  • Uncertainty of R&D outcomes
  • Long-term development timeline
  • Reliance on a single large contractor

Tags

research-and-development-in-the-physical, department-of-defense, fl, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ENHANCED CAPABILITY & OPERABILITY

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 $6.6 million.

What is the period of performance?

Start: 2024-06-17. End: 2026-10-16.

What are the specific performance metrics and expected outcomes for this R&D contract?

The provided data does not detail specific performance metrics or expected outcomes. Further analysis of the contract's statement of work would be necessary to understand the precise deliverables and success criteria for this research and development effort.

How does the fixed fee component of this Cost Plus Fixed Fee contract compare to industry standards for similar R&D projects?

Benchmarking the fixed fee for a Cost Plus Fixed Fee R&D contract requires detailed knowledge of the project's scope, complexity, and risk. Without more specific information on the R&D tasks, it is difficult to definitively assess if the fee is aligned with industry standards.

What is the potential return on investment for taxpayers from this specific R&D expenditure?

The return on investment for taxpayers from this R&D expenditure is currently speculative. It hinges on the successful development of enhanced capabilities that could provide a strategic advantage or lead to future technological innovations, the value of which cannot be quantified at this stage.

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 DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: N0001423SB001

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2000 W NASA BLVD, MELBOURNE, FL, 32904

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: $12,095,078

Exercised Options: $9,751,813

Current Obligation: $6,590,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2024-06-17

Current End Date: 2026-10-16

Potential End Date: 2026-10-16 00:00:00

Last Modified: 2025-12-18

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