DoD's $274.7M Northrop Grumman Contract: Research & Development in Physical, Engineering, and Life Sciences

Contract Overview

Contract Amount: $274,665,890 ($274.7M)

Contractor: Northrop Grumman Corporation

Awarding Agency: Department of Defense

Start Date: 1999-10-21

End Date: 2015-01-30

Contract Duration: 5,580 days

Daily Burn Rate: $49.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Place of Performance

Location: BETHPAGE, NASSAU County, NEW YORK, 11714

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $274.7 million to NORTHROP GRUMMAN CORPORATION for work described as: Key points: 1. Significant investment in R&D for physical, engineering, and life sciences. 2. Contract awarded to Northrop Grumman, a major defense contractor. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. Contract duration was substantial, spanning over 15 years.

Value Assessment

Rating: fair

The contract value of $274.7 million over 15 years is substantial. Without specific performance metrics or comparable R&D contracts, assessing its value for money is difficult. The cost-plus award fee structure allows for flexibility but requires robust oversight to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: The substantial investment in R&D suggests a long-term strategic allocation of taxpayer funds aimed at technological advancement, with potential future benefits.

Public Impact

Advancement of critical research and development in key scientific and engineering fields. Potential for new technologies and innovations that could benefit national security. Significant financial commitment by the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to cost overruns or scope creep.
Cost-plus award fee structure requires diligent oversight to control costs.
Lack of specific performance metrics makes value assessment challenging.

Positive Signals

Awarded through full and open competition.
Investment in critical R&D areas.
Potential for significant technological advancements.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for innovation and maintaining a technological edge, often involving long-term projects with uncertain outcomes but high potential impact.

Small Business Impact

The data indicates the contract was awarded to Northrop Grumman, a large corporation. There is no specific information provided regarding the involvement or subcontracting opportunities for small businesses in this particular contract.

Oversight & Accountability

The cost-plus award fee structure necessitates strong oversight from the Defense Contract Management Agency to ensure that costs are reasonable and that award fees are justified by performance. Regular audits and performance reviews are critical.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Long contract duration (15 years).
Cost-plus award fee structure.
Lack of specific performance metrics in provided data.
Potential for scope creep in R&D projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $274.7 million to NORTHROP GRUMMAN CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN 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 $274.7 million.

What is the period of performance?

Start: 1999-10-21. End: 2015-01-30.

What specific R&D objectives were prioritized under this contract, and how do they align with current defense priorities?

The contract focused on Research and Development in the Physical, Engineering, and Life Sciences. While the specific objectives are not detailed, such R&D typically aims to develop advanced materials, novel engineering solutions, or breakthroughs in biological sciences relevant to defense applications. Alignment with current priorities would depend on the evolving strategic landscape and technological needs of the Department of Defense at the time of award and throughout its duration.

How effectively did the full and open competition process ensure competitive pricing for this long-term R&D effort?

Full and open competition is designed to maximize bidder participation and foster price competition. For a long-term R&D contract, the initial competitive pricing might be based on estimated costs and projected milestones. However, the effectiveness in ensuring competitive pricing throughout the contract's 15-year lifespan depends on the contract type (Cost Plus Award Fee) and the agency's ability to manage scope and control costs effectively over time.

What were the key performance indicators (KPIs) used to determine award fees, and how were they measured to ensure taxpayer value?

The provided data does not specify the key performance indicators (KPIs) used for award fees. In a Cost Plus Award Fee (CPAF) contract, KPIs are crucial for assessing contractor performance against objectives. Effective oversight would involve clearly defined, measurable KPIs related to research progress, innovation, adherence to budget, and timely delivery of research outcomes. The agency's rigorous evaluation of these KPIs would determine the extent of the award fee, directly impacting taxpayer value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: S OYSTER BAY RD, BETHPAGE, NY, 11714

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline