DoD Awards Northrop Grumman $943M for Naval Ship Advanced Technology Development
Contract Overview
Contract Amount: $19,875,157 ($19.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 1997-04-04
End Date: 2005-09-30
Contract Duration: 3,101 days
Daily Burn Rate: $6.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: 199707!1700!5162!BZ004!NAVAL SEA SYSTEMS COMMAND !N0002492C4166 !A!*!P00060 !19970404!19991231!001864081!943821108!008255408!N!90099!NORTHROP GRUMMAN CORPORATION !401 E HENDY AVE MS92-1 !SUNNYVALE !CA!94086!77000!085!06!SUNNYVALE !SANTA CLARA !CALIFORNIA!0001!+000000056000!N!N!000000000000!AC33!RDTE/SHIPS-ADV TECH DEV !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !3511!3!*!*!C!B!A!*!A !U!R!2!002!B!* !A!N!Z!* !* !N!C!*!C!C!A!A!A!*!* !*!N!A!D!N!*!*!*!*!*!
Place of Performance
Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94086
Plain-Language Summary
Department of Defense obligated $19.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 199707!1700!5162!BZ004!NAVAL SEA SYSTEMS COMMAND !N0002492C4166 !A!*!P00060 !19970404!19991231!001864081!943821108!008255408!N!90099!NORTHROP GRUMMAN CORPORATION !401 E HENDY AVE MS92-1 !SUNNYVALE !CA!94086!77000!085!06!SUNNYVALE !SANTA … Key points: 1. Significant contract value of $943.8 million awarded to Northrop Grumman. 2. Contract supports advanced technology development for naval ships, a critical defense sector. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration is substantial, spanning over 3100 days, indicating a long-term project.
Value Assessment
Rating: good
The contract value of $943.8 million for advanced technology development appears reasonable given the scope and duration. Benchmarking against similar R&D contracts for naval systems would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery and potentially more favorable pricing for the government. The use of a Cost Plus Award Fee (CPAF) contract type allows for flexibility while incentivizing performance.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more efficient use of funds compared to a sole-source procurement.
Public Impact
Enhances naval capabilities through advanced technology. Supports high-tech jobs within the defense industry. Contributes to national security through modernization of naval assets.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Long contract duration could lead to cost overruns if not managed effectively.
- Cost Plus Award Fee contracts can sometimes incentivize higher spending.
- Potential for scope creep over the extended performance period.
Positive Signals
- Awarded through full and open competition.
- Northrop Grumman is a major defense contractor with relevant expertise.
- Focus on advanced technology development is crucial for future naval superiority.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on advanced technology for naval ships. Defense R&D spending is a significant portion of the federal budget, aimed at maintaining technological superiority.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract is managed by the Naval Sea Systems Command (NAVSEA) and overseen by the Defense Contract Management Agency (DCMA). These agencies are responsible for ensuring contract compliance and performance.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration increases risk of cost escalation.
- Complexity of advanced technology development can lead to unforeseen challenges.
- Reliance on a single large contractor for critical R&D.
- Potential for technological obsolescence if development timelines are not met.
Tags
department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 199707!1700!5162!BZ004!NAVAL SEA SYSTEMS COMMAND !N0002492C4166 !A!*!P00060 !19970404!19991231!001864081!943821108!008255408!N!90099!NORTHROP GRUMMAN CORPORATION !401 E HENDY AVE MS92-1 !SUNNYVALE !CA!94086!77000!085!06!SUNNYVALE !SANTA CLARA !CALIFORNIA!0001!+000000056000!N!N!000000000000!AC33!RDTE/SHIPS-ADV TECH DEV !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !3511!3!*!*!C!B!A!*!A !U!R!2!0
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 $19.9 million.
What is the period of performance?
Start: 1997-04-04. End: 2005-09-30.
What specific advanced technologies are being developed under this contract, and how do they align with current naval strategic objectives?
The contract details mention 'RDTE/SHIPS-ADV TECH DEV' which broadly covers research, development, testing, and evaluation for advanced ship technologies. Specifics are likely classified or proprietary, but generally, such development aims to enhance capabilities in areas like propulsion, weapons systems, sensors, stealth, and autonomous operations to maintain a strategic advantage.
What are the key performance metrics and award fee criteria for Northrop Grumman under this Cost Plus Award Fee contract?
The specific award fee criteria are not detailed in the provided data and are typically outlined in the contract's statement of work. However, for a Cost Plus Award Fee contract in R&D, metrics often include meeting technical milestones, achieving performance targets, timely delivery of prototypes or reports, and overall innovation and effectiveness of the developed technologies.
How will the effectiveness of the developed advanced technologies be measured and validated post-contract completion?
Validation of effectiveness usually involves rigorous testing, simulations, and operational assessments conducted by the Navy, often in collaboration with the contractor. This can include sea trials, integration with existing platforms, and performance evaluations against defined requirements and mission scenarios to ensure the technologies provide a tangible operational benefit.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 401 E HENDY AVE MS92-1, SUNNYVALE, CA, 94086
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 1997-04-04
Current End Date: 2005-09-30
Potential End Date: 2005-09-30 00:00:00
Last Modified: 2023-08-09
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