DoD awards $29.3M to Northrop Grumman for Next Generation Command and Control Processor Production and Services
Contract Overview
Contract Amount: $29,293,461 ($29.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2008-03-12
End Date: 2013-12-30
Contract Duration: 2,119 days
Daily Burn Rate: $13.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: NEXT GENERATION COMMAND AND CONTROL PROCESSOR PRODUCTION AND SERVICES
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92128
Plain-Language Summary
Department of Defense obligated $29.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: NEXT GENERATION COMMAND AND CONTROL PROCESSOR PRODUCTION AND SERVICES Key points: 1. Contract awarded to a single large business, Northrop Grumman. 2. Spending occurred over a 5-year period (2008-2013). 3. The contract type was Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is Defense, specifically related to communications equipment manufacturing.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type offers less price certainty than fixed-price contracts. Without specific cost breakdowns or benchmarks, it's difficult to definitively assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing outcomes and how well they reflected market value are not detailed.
Taxpayer Impact: Taxpayer funds were used for the development and production of command and control processors, with the final cost influenced by the CPFF contract structure.
Public Impact
Supports national defense by providing critical command and control technology. Investment in advanced communication equipment manufacturing. Potential for technological advancements in military communication systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of detailed cost performance data makes value assessment difficult.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical defense need for command and control systems.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing of advanced wireless communications equipment for command and control systems. Spending in this area is crucial for maintaining technological superiority.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (sb: false). There is no further information provided regarding subcontracting opportunities for small businesses.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, responsible for ensuring contractor compliance and performance. Further oversight details are not provided.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business participation indicated.
- Limited transparency on cost performance and profit margins.
- Contract awarded over a decade ago, relevance of data may be limited.
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. NEXT GENERATION COMMAND AND CONTROL PROCESSOR PRODUCTION AND SERVICES
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 $29.3 million.
What is the period of performance?
Start: 2008-03-12. End: 2013-12-30.
What was the final profit margin for Northrop Grumman under this CPFF contract, and how does it compare to industry standards for similar defense contracts?
The provided data does not specify the final profit margin or allow for a direct comparison to industry standards. Cost Plus Fixed Fee contracts aim for a negotiated fixed fee, but the total cost can vary. Analyzing the final cost against the initial estimate and the fixed fee would be necessary to determine profitability and benchmark it against similar defense contracts.
Were there any cost underruns or overruns compared to the initial projected costs, and what factors contributed to these outcomes?
The data does not explicitly state whether there were cost underruns or overruns. The contract duration was 2119 days, and the base cost was $13.824 million, with a total award amount of $29.29 million. Analyzing the difference between the base and award amounts, along with the contract type (CPFF), suggests potential for cost fluctuations, but specific contributing factors are not detailed.
How effective was the full and open competition in driving down costs and ensuring the best value for the government?
While the contract was awarded under full and open competition, the Cost Plus Fixed Fee structure introduces complexities in assessing cost-effectiveness. The competition likely ensured multiple bidders were considered, but the CPFF nature means the final price is tied to actual costs plus a fee, rather than a pre-determined fixed price. Therefore, the effectiveness in driving down costs is harder to gauge without detailed cost data and comparison.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 1 RANCHO CARMEL DR, SAN DIEGO, CA, 92128
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $218,163,150
Exercised Options: $50,156,772
Current Obligation: $29,293,461
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-03-12
Current End Date: 2013-12-30
Potential End Date: 2013-12-30 00:00:00
Last Modified: 2018-07-19
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