Northrop Grumman Awarded $62M for DoD Concept Demonstrator Design
Contract Overview
Contract Amount: $62,025,534 ($62.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2010-07-13
End Date: 2013-04-12
Contract Duration: 1,004 days
Daily Burn Rate: $61.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: CONCEPT DEMONSTRATOR(CD) DESIGN
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $62.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CONCEPT DEMONSTRATOR(CD) DESIGN Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for R&D. 2. Full and open competition was utilized for this contract. 3. The contract is for a definitive contract type. 4. The contract duration is 1004 days. 5. The contract is for Research and Development in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount of $62M for a 3-year R&D project requires careful monitoring to ensure value for money.
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. This method generally promotes price discovery and can lead to better pricing, though the specific pricing details are not provided.
Taxpayer Impact: Taxpayer funds are being used for research and development, which has the potential for future benefits but also carries inherent risks of not yielding desired outcomes.
Public Impact
This contract supports advanced research and development within the Department of Defense. The project aims to demonstrate a new concept, potentially leading to future technological advancements. The outcome of this R&D could impact future defense capabilities and spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- R&D projects inherently carry a risk of not achieving desired outcomes.
- Long contract duration may increase risk of scope creep or changing requirements.
Positive Signals
- Full and open competition suggests a competitive environment.
- Contract supports innovation and technological advancement.
- Definitive contract provides a clear framework for the project.
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority but requires careful oversight due to inherent uncertainties.
Small Business Impact
The prime contractor is Northrop Grumman Systems Corporation, a large aerospace and defense company. There is no specific information provided regarding small business participation in this contract.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency, indicating established oversight mechanisms. However, the effectiveness of this oversight in controlling costs and ensuring performance for R&D contracts can vary.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Research and Development inherent uncertainty.
- Potential for cost overruns.
- Lack of specific performance metrics in provided data.
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 $62.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CONCEPT DEMONSTRATOR(CD) DESIGN
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 $62.0 million.
What is the period of performance?
Start: 2010-07-13. End: 2013-04-12.
What specific technological advancements are expected from this concept demonstrator, and how will they be measured?
The specific technological advancements are not detailed in the provided data. Typically, concept demonstrator projects aim to prove the feasibility of new technologies or approaches. Success metrics would likely be defined in the contract's statement of work, focusing on achieving specific performance milestones, demonstrating operational capabilities, or validating theoretical models.
What are the key risks associated with the Cost Plus Fixed Fee structure for this R&D project, and how are they being mitigated?
The primary risk with CPFF is that the contractor may have less incentive to control costs, as the government bears most of the expense. Mitigation strategies often include robust government oversight, detailed cost tracking, performance incentives, and clear definition of the fixed fee based on realistic cost estimates and project complexity.
How does the $62M investment in this concept demonstrator align with broader DoD R&D priorities and potential return on investment?
Alignment with broader DoD R&D priorities would depend on the specific technology area. Concept demonstrators are intended to de-risk future, larger investments. The ROI is realized if the demonstrated concept leads to a successful program that enhances national security, potentially reducing long-term costs or providing a strategic advantage.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except 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: N0001909R0238
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 600 GRUMMAN RD WEST, BETHPAGE, NY, 11714
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $62,196,690
Exercised Options: $62,196,690
Current Obligation: $62,025,534
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-07-13
Current End Date: 2013-04-12
Potential End Date: 2013-04-12 00:00:00
Last Modified: 2019-07-30
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