DoD Awards Northrop Grumman $276M Engineering Services Contract for UK Support
Contract Overview
Contract Amount: $275,992,287 ($276.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2015-10-01
End Date: 2025-12-31
Contract Duration: 3,744 days
Daily Burn Rate: $73.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: IGF::OT::IGF FY16 UK SUPPORT
Place of Performance
Location: SUNNYVALE, SANTA CLARA County, CALIFORNIA, 94086
Plain-Language Summary
Department of Defense obligated $276.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF FY16 UK SUPPORT Key points: 1. Significant contract value of $276 million awarded to a major defense contractor. 2. Lack of competition raises questions about price discovery and potential overspending. 3. Long contract duration (over 10 years) may not align with evolving technological needs. 4. Engineering services sector is critical for defense modernization, but requires careful oversight.
Value Assessment
Rating: questionable
The contract type is Cost Plus Incentive Fee, which can lead to higher costs than fixed-price contracts if not managed tightly. Benchmarking is difficult without more detailed cost breakdowns, but the overall value is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may not be receiving the best possible value, as pricing was not tested against market alternatives.
Public Impact
Taxpayers may be paying more than necessary due to the absence of competitive bidding. The long-term nature of the contract could lock the government into specific solutions. Oversight is crucial to ensure the contractor delivers value and meets performance objectives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
- Potential for cost overruns
Positive Signals
- Award to established contractor
- Long-term support for critical function
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for supporting complex defense systems and modernization efforts. Spending in this area is substantial across the DoD, requiring robust oversight to ensure efficiency.
Small Business Impact
This contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award, suggesting missed opportunities for small business engagement.
Oversight & Accountability
The sole-source nature of this contract necessitates strong oversight from the Department of the Navy to ensure cost control, performance, and adherence to contract terms. Regular reviews and audits are essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost-plus contract type offers less incentive for cost control.
- Long contract duration (over 10 years) poses risk of obsolescence or changing needs.
- Limited transparency on specific services and performance metrics.
- No apparent small business participation.
Tags
engineering-services, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $276.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF FY16 UK SUPPORT
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $276.0 million.
What is the period of performance?
Start: 2015-10-01. End: 2025-12-31.
What specific engineering services are being provided under this contract, and how do they align with current and future UK support needs?
The contract is for engineering services related to UK support, with a North American Industry Classification System (NAICS) code of 541330 (Engineering Services). While the specific services are not detailed in the provided data, the long duration suggests a sustained need. Further analysis would require examining the contract's statement of work to understand the precise technical requirements and their relevance to evolving defense strategies.
Given the sole-source award, what mechanisms are in place to ensure cost reasonableness and prevent contractor overreach?
As a Cost Plus Incentive Fee (CPIF) contract awarded sole-source, robust oversight is critical. The Department of the Navy should employ stringent cost monitoring, regular performance reviews, and potentially independent cost estimates to validate expenditures. Incentive fee structures should be carefully designed to reward efficiency and cost savings, rather than simply passing costs through.
How does this contract contribute to the overall effectiveness of UK support operations, and what are the key performance indicators being tracked?
The effectiveness of this contract is tied to the successful delivery of engineering services that enable UK support operations. Key performance indicators (KPIs) would likely focus on technical performance, schedule adherence, and cost control within the CPIF framework. Without access to the contract's statement of work and performance metrics, a definitive assessment of its contribution to effectiveness is not possible.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003016R0010
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
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: $308,527,804
Exercised Options: $275,994,378
Current Obligation: $275,992,287
Actual Outlays: $28,156,311
Subaward Activity
Number of Subawards: 1935
Total Subaward Amount: $295,837,128
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2015-10-01
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-09-30
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)