DoD Awards Northrop Grumman $344M for NRE Interrogator, Ending in 2021
Contract Overview
Contract Amount: $34,424,761 ($34.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2013-08-28
End Date: 2021-12-31
Contract Duration: 3,047 days
Daily Burn Rate: $11.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NRE FOR INTERROGATOR
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $34.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: NRE FOR INTERROGATOR Key points: 1. Significant contract value of $344.2 million awarded to a major defense contractor. 2. Limited competition due to the nature of the NRE (Non-Recurring Engineering) requirement. 3. Potential risk associated with cost-plus contracts and long performance periods. 4. Spending falls within the Aircraft Engine and Engine Parts Manufacturing sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. The total award value is substantial, but without specific performance metrics or benchmarks for NRE development, assessing its value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition scenario, likely due to specialized technology or contractor capabilities. This limits price discovery and potentially increases costs for the government.
Taxpayer Impact: The substantial award value suggests a significant taxpayer investment. The lack of competition raises concerns about whether taxpayers received the best possible price for this specialized NRE.
Public Impact
Taxpayers are funding the development of specialized interrogation technology for the Department of Defense. The long contract duration (2013-2021) means sustained investment over several years. The specific application of 'NRE FOR INTERROGATOR' suggests a critical but potentially sensitive defense capability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Not available for competition
- Long contract duration
- Lack of specific performance metrics for NRE
Positive Signals
- Award to a major defense contractor with established capabilities
- Addresses a specific defense need (interrogator technology)
Sector Analysis
This contract falls under the Aircraft Engine and Engine Parts Manufacturing sector, though the 'NRE FOR INTERROGATOR' description suggests a specialized electronic or systems component rather than traditional engines. Benchmarks for NRE development are highly variable and contract-specific.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of small business subcontracting in the provided data.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating oversight. However, the CPFF structure and limited competition warrant close monitoring to ensure cost control and effective delivery.
Related Government Programs
- Aircraft Engine and Engine Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost overrun risk due to CPFF structure
- Limited competition may lead to higher prices
- Potential for scope creep in NRE projects
- Long contract duration increases exposure to changing requirements
- Lack of transparency in pricing justification
- Effectiveness of technology dependent on specific application and integration
Tags
aircraft-engine-and-engine-parts-manufac, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. NRE FOR INTERROGATOR
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 $34.4 million.
What is the period of performance?
Start: 2013-08-28. End: 2021-12-31.
What specific performance metrics or milestones were used to justify the fixed fee and ensure effective development of the interrogator technology?
The provided data does not detail specific performance metrics or milestones for the NRE development. For a Cost Plus Fixed Fee contract, especially for Non-Recurring Engineering, defining clear, measurable objectives is crucial for both contractor incentive and government oversight. Without these, assessing the effectiveness of the development process and the justification for the fixed fee becomes challenging.
Given the 'NOT AVAILABLE FOR COMPETITION' status, what steps were taken to ensure the government received fair and reasonable pricing for this specialized NRE?
When a contract is not available for competition, the government typically relies on techniques like cost analysis, technical evaluations, and comparison to similar historical contracts to determine fair and reasonable pricing. However, the effectiveness of these methods can be limited without competitive bids. The substantial award value necessitates rigorous justification and documentation of the pricing determination process.
How does the 'NRE FOR INTERROGATOR' technology align with current and future Department of Defense operational requirements, and what is the long-term value proposition?
The long-term value proposition depends heavily on the specific function and criticality of the interrogator technology within DoD operations. NRE development aims to establish a capability, but its ultimate effectiveness and value are realized through its integration, deployment, and sustained utility. Understanding the strategic importance and potential obsolescence of this technology is key to assessing its enduring value beyond the initial development phase.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Engine and Engine Parts Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001912R0046
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 2000 W NASA BLVD, MELBOURNE, FL, 32904
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,062,936
Exercised Options: $35,062,936
Current Obligation: $34,424,761
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-08-28
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2023-11-13
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