DoD's $153M Systems Engineering Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $15,324,781 ($15.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2009-07-01
End Date: 2010-07-31
Contract Duration: 395 days
Daily Burn Rate: $38.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: 6.3 - SYSTEMS ENGINEERING SUPPORT
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $15.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 6.3 - SYSTEMS ENGINEERING SUPPORT Key points: 1. Significant investment in R&D for defense systems. 2. Northrop Grumman, a major defense contractor, secured the award. 3. Full and open competition was utilized. 4. Contract duration was approximately 13 months.
Value Assessment
Rating: fair
The award amount of $153.2M for 13 months of R&D services appears substantial. Benchmarking against similar large-scale systems engineering contracts is difficult without more detailed scope information, but the price seems within a reasonable range for complex defense projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple bidders to compete, theoretically driving down costs and ensuring the government receives the best value.
Taxpayer Impact: Taxpayer funds are being used for critical research and development in defense systems, aiming to enhance national security capabilities.
Public Impact
Enhances national defense capabilities through advanced systems engineering. Supports technological innovation within the defense sector. Potential for job creation within the defense industry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is relatively short for complex R&D.
- Lack of small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Focus on critical R&D for defense.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences, a critical sector for defense modernization. Spending in this area is often high due to the complexity and cutting-edge nature of the work.
Small Business Impact
The contract was not awarded to small businesses, indicating a focus on large, established defense contractors for this specific R&D requirement. Opportunities for small businesses may lie in subcontracting roles.
Oversight & Accountability
The Department of Defense, specifically the Defense Information Systems Agency, is responsible for overseeing this contract. Standard oversight mechanisms for R&D contracts would apply to ensure progress and adherence to specifications.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for R&D cost overruns.
- Risk of technical challenges leading to delays.
- No small business participation.
- Short contract duration for extensive R&D.
Tags
research-and-development-in-the-physical, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 6.3 - SYSTEMS ENGINEERING 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 (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $15.3 million.
What is the period of performance?
Start: 2009-07-01. End: 2010-07-31.
What specific systems engineering advancements are expected from this $153M investment?
The contract aims to advance complex defense systems through specialized engineering support. Expected outcomes likely include improved system design, integration, testing, and lifecycle management for critical defense platforms. Specific advancements would depend on the detailed technical requirements outlined in the contract statement of work, which are not provided here.
What are the primary risks associated with this R&D contract?
Key risks include potential cost overruns common in R&D, schedule delays due to technical challenges, and the possibility that the research may not yield the desired technological breakthroughs. Ensuring effective project management and clear communication between the contractor and DISA is crucial to mitigate these risks.
How does this contract contribute to the overall effectiveness of defense information systems?
This contract contributes to effectiveness by ensuring that defense information systems are developed and integrated with robust engineering principles. It supports the modernization and enhancement of these systems, aiming to improve their reliability, security, and operational capabilities in complex environments.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 4807 STONECROFT BLVD, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,603,097
Exercised Options: $15,603,097
Current Obligation: $15,324,781
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102808D2023
IDV Type: IDC
Timeline
Start Date: 2009-07-01
Current End Date: 2010-07-31
Potential End Date: 2010-07-31 00:00:00
Last Modified: 2016-02-17
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