DoD awards $20.4M to Northrop Grumman for Trident II D5 successor program, citing engineering services
Contract Overview
Contract Amount: $20,243,813 ($20.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2009-07-10
End Date: 2011-09-30
Contract Duration: 812 days
Daily Burn Rate: $24.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ADVANCED LAUNCHER DEVELOPMENT AND RISK REDUCTION DEMONSTRATION FOR THE UK TRIDENT II D5 SUCCESSOR PROGRAM
Place of Performance
Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94086
Plain-Language Summary
Department of Defense obligated $20.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ADVANCED LAUNCHER DEVELOPMENT AND RISK REDUCTION DEMONSTRATION FOR THE UK TRIDENT II D5 SUCCESSOR PROGRAM Key points: 1. Contract awarded to a single, established defense contractor. 2. High-value contract for critical national security program. 3. Limited competition due to specialized nature of the work. 4. Potential for cost overruns in complex R&D projects.
Value Assessment
Rating: fair
The contract value of $20.4M for engineering services is difficult to benchmark without specific details on the scope of work. However, for advanced defense systems development, this amount could be reasonable if it covers significant R&D and specialized engineering.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process. The justification for sole-source is likely based on the unique capabilities required for the Trident II D5 successor program.
Taxpayer Impact: Taxpayer funds are used for a critical defense program. While sole-source awards can be more expensive, the necessity of the program and the specialized nature of the contractor's expertise may justify the expenditure.
Public Impact
Ensures continued development of a vital strategic deterrent. Supports high-tech engineering jobs within the defense sector. Contributes to national security and global stability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price transparency.
- Potential for cost growth in long-term, complex development.
- Lack of small business participation noted.
Positive Signals
- Addresses a critical national security requirement.
- Utilizes established contractor with relevant expertise.
- Firm fixed price contract provides some cost certainty.
Sector Analysis
This contract falls within the defense sector, specifically focusing on advanced engineering services for strategic missile systems. Spending in this area is typically high and characterized by long development cycles and specialized, often sole-source, procurements.
Small Business Impact
The data indicates no small business participation in this contract. Given the specialized and high-security nature of the Trident II D5 successor program, it is likely that only large, established defense contractors possess the necessary clearances and capabilities.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Oversight would focus on ensuring performance, adherence to schedule, and proper financial management, especially given the sole-source nature and program criticality.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns in R&D
- No small business participation
Tags
engineering-services, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ADVANCED LAUNCHER DEVELOPMENT AND RISK REDUCTION DEMONSTRATION FOR THE UK TRIDENT II D5 SUCCESSOR PROGRAM
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 $20.2 million.
What is the period of performance?
Start: 2009-07-10. End: 2011-09-30.
What specific engineering services are included in this $20.4M award, and how do they align with the overall program milestones for the Trident II D5 successor?
The contract details are limited, but 'Engineering Services' for 'ADVANCED LAUNCHER DEVELOPMENT AND RISK REDUCTION DEMONSTRATION' suggests work on the physical and operational aspects of the next-generation missile launcher. This likely includes design, prototyping, testing, and risk mitigation activities crucial for demonstrating the viability of the successor system before full-scale production.
Given the sole-source nature, what mechanisms are in place to ensure Northrop Grumman is not overcharging for these specialized engineering services?
While a sole-source award limits direct price competition, the government typically employs robust cost analysis and negotiation techniques. This includes reviewing the contractor's cost proposals, historical pricing data, and independent government cost estimates. The firm fixed-price structure also places some cost risk on the contractor, incentivizing efficiency.
How does this contract contribute to the overall effectiveness and readiness of the US strategic nuclear deterrent, and what are the long-term implications?
This contract is foundational for ensuring the continued effectiveness and modernization of the US strategic nuclear deterrent by developing the successor to the Trident II D5. It addresses technological obsolescence and maintains a credible sea-based leg of the triad, crucial for deterrence and national security in a changing geopolitical landscape.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003009Q0015
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 401 E HENDY AVE MS 33-3, SUNNYVALE, CA, 94086
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: $21,094,341
Exercised Options: $21,094,341
Current Obligation: $20,243,813
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-07-10
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2024-03-21
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