DoD's $28M R&D Contract for Technical Engineering Services Awarded to Northrop Grumman
Contract Overview
Contract Amount: $28,085,697 ($28.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2010-08-01
End Date: 2013-01-31
Contract Duration: 914 days
Daily Burn Rate: $30.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TECHNICAL ENGINEEERING SERVICES
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TECHNICAL ENGINEEERING SERVICES Key points: 1. Contract awarded for Research and Development in Physical, Engineering, and Life Sciences. 2. Northrop Grumman, a major defense contractor, secured the award. 3. The contract was awarded under full and open competition. 4. Spending falls within the R&D sector, characterized by high innovation and specialized expertise.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar R&D contracts is difficult due to the specialized nature of the services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure may limit the direct impact of competition on final price.
Taxpayer Impact: Taxpayer funds are supporting specialized R&D efforts. The effectiveness of the spending hinges on the successful delivery of technical engineering services and the value derived from the research outcomes.
Public Impact
Supports advanced research and development critical for national security. Potential for technological advancements and innovation stemming from the contract. Funds allocated to a large, established defense contractor, potentially impacting smaller, innovative firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of specific performance metrics makes value assessment challenging.
- Limited visibility into the specific R&D outcomes and their impact.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical R&D for the Department of Defense.
- Northrop Grumman is a reputable contractor with extensive experience.
Sector Analysis
This contract falls under the Research and Development sector, specifically NAICS code 541712. This sector is characterized by high investment in innovation and specialized scientific expertise, often with long development cycles and uncertain outcomes. Benchmarks are difficult due to the unique nature of R&D projects.
Small Business Impact
The contract was awarded under full and open competition, but the data indicates no small business participation. This suggests that the prime contractor, Northrop Grumman, is handling the entire scope of work, potentially limiting opportunities for small businesses in this specific contract.
Oversight & Accountability
Oversight would typically be managed by the Defense Information Systems Agency (DISA). The Cost Plus Fixed Fee structure necessitates close monitoring of costs and progress to ensure efficient use of taxpayer funds and prevent potential overruns.
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
- Cost Plus Fixed Fee contract type.
- Lack of specific performance metrics.
- No reported small business participation.
- Limited information on specific R&D deliverables and outcomes.
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 $28.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TECHNICAL ENGINEEERING 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 Information Systems Agency).
What is the total obligated amount?
The obligated amount is $28.1 million.
What is the period of performance?
Start: 2010-08-01. End: 2013-01-31.
What specific technical engineering services are being procured, and how do they align with DISA's strategic objectives?
The contract is for 'TECHNICAL ENGINEEERING SERVICES' under NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences). While the specific services are not detailed, they likely support DISA's mission in areas such as defense information systems, cybersecurity, or advanced communication technologies. Alignment with strategic objectives would require further information on DISA's current R&D priorities and technological roadmaps.
How effectively was the Cost Plus Fixed Fee structure managed to control costs and ensure value for the $28 million expenditure?
Assessing the effectiveness of the CPFF structure requires access to performance reports, cost audits, and final project outcomes. Without this data, it's difficult to determine if costs were controlled or if the fixed fee adequately compensated the contractor for the risks undertaken. Close oversight by DISA would have been crucial to mitigate potential cost overruns and ensure the R&D yielded valuable results.
What tangible R&D outcomes or technological advancements resulted from this contract, and were they successfully integrated into DoD systems?
The provided data does not detail the specific outcomes or advancements from this R&D contract. Determining the success of the contract would involve evaluating the deliverables, prototypes, research papers, or patents generated. Furthermore, assessing their integration into DoD systems would require tracking their adoption and impact on operational capabilities, which is beyond the scope of the current information.
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: COST PLUS FIXED FEE (U)
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: $31,764,263
Exercised Options: $29,378,017
Current Obligation: $28,085,697
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $2,646,640
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HC102808D2023
IDV Type: IDC
Timeline
Start Date: 2010-08-01
Current End Date: 2013-01-31
Potential End Date: 2013-01-31 00:00:00
Last Modified: 2016-02-17
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