DoD's $27.5M JEM/HPAC Integration Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $27,467,556 ($27.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2007-02-28
End Date: 2012-02-27
Contract Duration: 1,825 days
Daily Burn Rate: $15.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: JEM/HPAC INTEGRATION
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92123
Plain-Language Summary
Department of Defense obligated $27.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: JEM/HPAC INTEGRATION Key points: 1. Significant investment in engineering services for defense systems. 2. Northrop Grumman, a major defense contractor, secured the award. 3. Potential risks associated with long-term, cost-plus contracts. 4. Spending falls within the broad engineering services sector.
Value Assessment
Rating: fair
The contract's Cost Plus Award Fee (CPAF) structure can lead to higher costs if not tightly managed. Benchmarking against similar complex integration projects is difficult without more detailed cost breakdowns.
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 CPAF pricing structure may not always yield the lowest price compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds are utilized for advanced defense system integration, with the ultimate value dependent on the successful execution and cost control of the project.
Public Impact
Enhances critical defense capabilities through system integration. Supports advanced technology development within the Department of the Navy. Long-term contract duration suggests ongoing need and potential for follow-on work.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost overrun risk due to CPAF structure
- Potential for scope creep over the contract duration
- Limited transparency on specific cost drivers
Positive Signals
- Awarded through full and open competition
- Addresses critical defense system needs
- Experienced contractor with a strong track record
Sector Analysis
This contract falls under Engineering Services, a broad category often supporting complex defense and aerospace projects. Spending benchmarks for such specialized integration work are highly variable based on system complexity and duration.
Small Business Impact
The prime contractor is Northrop Grumman, a large business. There is no explicit information provided regarding small business subcontracting goals or performance within this data.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The CPAF structure necessitates robust monitoring to ensure performance and control costs effectively, mitigating potential waste.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost overrun potential
- Contract complexity
- Long contract duration
- Limited cost transparency
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. JEM/HPAC INTEGRATION
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 $27.5 million.
What is the period of performance?
Start: 2007-02-28. End: 2012-02-27.
What specific performance metrics are tied to the award fee in this CPAF contract?
The provided data does not specify the performance metrics linked to the award fee. Typically, these metrics would relate to technical performance, schedule adherence, and cost control. Effective oversight would require clear, measurable objectives to ensure the contractor is incentivized appropriately and taxpayer funds are used efficiently.
How does the cost-plus award fee structure compare to alternative contract types for this type of integration work in terms of risk and value?
CPAF contracts shift some risk to the government but offer flexibility for complex, evolving projects where cost and performance are hard to define upfront. Compared to fixed-price contracts, CPAF can lead to higher costs if not managed diligently. However, it allows for contractor innovation and incentivizes performance through award fees, potentially yielding better technical outcomes.
What is the projected long-term impact of this integration on the Navy's operational capabilities?
This integration is intended to enhance critical defense capabilities, likely improving the functionality, interoperability, or efficiency of specific naval systems. The long duration suggests a strategic investment. The ultimate impact depends on the successful integration and the subsequent operational deployment and utilization of the enhanced systems.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002406R3675
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,615,858
Exercised Options: $41,615,858
Current Obligation: $27,467,556
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4091
IDV Type: IDC
Timeline
Start Date: 2007-02-28
Current End Date: 2012-02-27
Potential End Date: 2012-02-27 00:00:00
Last Modified: 2018-09-12
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