Northrop Grumman awarded $11.87M for R&D services, with a significant duration of 4,743 days

Contract Overview

Contract Amount: $11,871,031 ($11.9M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2005-09-30

End Date: 2018-09-25

Contract Duration: 4,743 days

Daily Burn Rate: $2.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Place of Performance

Location: WOODLAND HILLS, LOS ANGELES County, CALIFORNIA, 91367

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. The contract's extensive duration implies a long-term research and development need. 3. No small business set-aside was utilized, indicating the primary contractor is likely a large entity. 4. The firm-fixed-price structure aims to control costs for the government. 5. Research and Development in Physical, Engineering, and Life Sciences is a critical area for defense innovation. 6. The contract was awarded by the Department of Defense, highlighting its strategic importance.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The duration of nearly 13 years suggests a substantial investment, but the total award amount of $11.87 million averages to approximately $913,000 per year. This figure needs to be compared against the complexity and scope of the R&D activities undertaken. Given the lack of detailed performance data, it's difficult to definitively assess value for money, but the extended timeline could indicate either a highly specialized, long-term project or potential for scope creep if not managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically leads to a more competitive environment, potentially driving down prices and encouraging innovation. The presence of only one bid (no: 1) is unusual for a full and open competition and warrants further investigation. It could suggest that despite the open nature, only one entity possessed the unique capabilities required, or there may have been other factors limiting participation.

Taxpayer Impact: A competitive bidding process, even with a single bidder, is generally favorable for taxpayers as it aims to secure the best possible offer. However, the low number of bids raises concerns about whether the government truly received the most advantageous pricing and terms available in the market.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research arms, gaining access to advanced R&D capabilities. The services delivered are in the realm of physical, engineering, and life sciences research, contributing to technological advancement. The geographic impact is primarily within the United States, where Northrop Grumman operates and where the research outcomes will be applied. Workforce implications include highly skilled scientists, engineers, and technicians employed by Northrop Grumman.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single bid in a full and open competition raises questions about market responsiveness and potential lack of alternatives.
Extended contract duration (nearly 13 years) could present risks related to technological obsolescence or changing requirements if not actively managed.
Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the true value and effectiveness of the R&D investment.

Positive Signals

Awarded through full and open competition, indicating an attempt to leverage market forces.
Firm-fixed-price contract type helps to establish cost certainty for the government.
Northrop Grumman is a well-established defense contractor with significant R&D experience.

Sector Analysis

The contract falls under the Research and Development (R&D) sector, specifically within the physical, engineering, and life sciences. This is a critical area for defense modernization and technological superiority. The market for defense R&D is characterized by high barriers to entry, specialized expertise, and significant government investment. Comparable spending benchmarks would typically involve analyzing other large-scale R&D contracts within the Department of Defense or other federal agencies focused on similar scientific disciplines.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no indication of small business subcontracting requirements (ss: false). This suggests that the primary focus was on securing specialized capabilities from a large, established contractor. The absence of small business participation could mean missed opportunities for smaller innovative firms to contribute to this specific R&D effort.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Defense, likely through the Defense Contract Management Agency (DCMA) given their role in contract administration. Accountability measures would be tied to the terms of the firm-fixed-price contract and any specific milestones or deliverables outlined in the statement of work. Transparency is generally facilitated through contract databases like FPDS, but detailed R&D progress reports are often considered sensitive and may not be publicly disclosed.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Engineering Services Contracts
Life Sciences Research Grants

Risk Flags

Single Bidder in Full and Open Competition
Extended Contract Duration
Lack of Specific Deliverables/Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. See the official description on USAspending.

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 $11.9 million.

What is the period of performance?

Start: 2005-09-30. End: 2018-09-25.

What specific R&D projects or technologies were funded under this contract?

The provided data does not specify the exact R&D projects or technologies funded under this $11.87 million contract awarded to Northrop Grumman Systems Corporation. The North American Industry Classification System (NAICS) code 541710 indicates 'Research and Development in the Physical, Engineering, and Life Sciences,' which is a broad category. Without access to the contract's statement of work or associated documentation, it is impossible to detail the specific scientific or engineering endeavors. Such information is often proprietary or classified, especially within defense research contexts, and is not typically made public.

How does the $11.87 million award compare to typical R&D spending for similar projects within the DoD?

Comparing the $11.87 million award to typical R&D spending requires context on the project's scope, duration, and technological maturity. For a nearly 13-year project (4743 days), this award averages approximately $913,000 annually. This figure could be considered moderate to substantial depending on the field. For instance, early-stage basic research might have lower costs, while advanced prototype development or complex system engineering could easily exceed this amount. The Department of Defense invests billions annually in R&D across various disciplines; this contract represents a small fraction of that total but could be significant for a specific, long-term research objective.

What are the primary risks associated with a contract of this duration (4743 days)?

A contract spanning 4743 days (nearly 13 years) carries several inherent risks. Technological obsolescence is a major concern; research conducted early in the contract might be outdated by the time it is completed or implemented. Requirements drift is another significant risk, as the needs of the Department of Defense may evolve over such a long period, potentially rendering the original research objectives less relevant. Furthermore, managing costs and performance over an extended duration can be challenging, requiring robust oversight to prevent scope creep and ensure continued alignment with strategic goals. Contractor performance stability and key personnel retention also become more critical over longer timeframes.

Given the 'full and open competition' award type, why was there only one bid recorded?

The recording of only one bid ('no': 1) under a 'full and open competition' award type is unusual and suggests potential underlying factors. It could indicate that despite the open solicitation, only Northrop Grumman possessed the highly specialized expertise, unique intellectual property, or necessary security clearances required for this specific R&D effort. Alternatively, the solicitation might have had stringent requirements or a very narrow focus that inadvertently limited the pool of capable bidders. Market research might have identified multiple potential bidders, but only one ultimately submitted a proposal due to various business or technical considerations.

What is the significance of the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code for this contract?

The NAICS code 541710 signifies that this contract is focused on scientific inquiry and experimentation aimed at discovering or interpreting facts, principles, or practical applications. 'Physical sciences' encompass fields like physics and astronomy; 'engineering sciences' include areas such as electrical, mechanical, and civil engineering; and 'life sciences' cover biology, medicine, and related fields. For the Department of Defense, R&D in these areas is crucial for developing next-generation military technologies, improving existing systems, understanding threats, and enhancing soldier capabilities. This code suggests the contract supports innovation critical to national security.

What does the firm-fixed-price (FFP) contract type imply for cost control and risk allocation?

A Firm-Fixed-Price (FFP) contract type implies that Northrop Grumman Systems Corporation agreed to a set price for the scope of work defined. This structure places the primary risk of cost overruns on the contractor. For the government, it offers the highest degree of cost certainty, as the final price is not expected to change unless the contract scope is formally modified through change orders. This is generally advantageous for the buyer, especially in R&D where outcomes can be uncertain, as it incentivizes the contractor to manage their costs efficiently to maximize profit within the agreed-upon price.

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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 21240 BURBANK BLVD, WOODLAND HILLS, CA, 91367

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,871,031

Exercised Options: $11,871,031

Current Obligation: $11,871,031

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline