DoD's $30.6M R&D Contract for Technical Engineering Services Awarded to Northrop Grumman
Contract Overview
Contract Amount: $30,623,431 ($30.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2010-09-24
End Date: 2013-02-24
Contract Duration: 884 days
Daily Burn Rate: $34.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: TECHNNICAL ENGINEERING SERVICES
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $30.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TECHNNICAL ENGINEERING SERVICES Key points: 1. Significant R&D investment in physical and engineering sciences. 2. Northrop Grumman, a major defense contractor, secured the award. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans over two years, indicating a substantial project duration.
Value Assessment
Rating: good
The contract's value of $30.6 million for technical engineering services appears reasonable given the R&D nature and the contractor's expertise. Benchmarking against similar large-scale R&D contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified contractors to bid, potentially driving down costs and ensuring fair market value.
Taxpayer Impact: Taxpayer funds are being utilized for critical research and development, aiming to advance technological capabilities within the Department of Defense.
Public Impact
Advancement of critical defense technologies through R&D. Potential for innovation and new capabilities for the military. Economic impact through contract award to a major corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully.
- Lack of specific small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical R&D for national security.
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences, excluding biotechnology. The $30.6 million value is significant for this sector, reflecting investment in advanced technical solutions.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific contract award. Future opportunities may exist for subcontracting, but direct participation appears limited in this instance.
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 performance and cost control.
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 explicit small business participation.
- Long contract duration (884 days) increases exposure to changing requirements.
- Potential for scope creep in R&D projects.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TECHNNICAL ENGINEERING 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 $30.6 million.
What is the period of performance?
Start: 2010-09-24. End: 2013-02-24.
What specific technical engineering advancements are expected from this $30.6 million R&D contract?
The contract's focus on 'Research and Development in the Physical, Engineering, and Life Sciences' suggests potential advancements in areas like advanced materials, complex system design, simulation, or novel engineering methodologies. Specific expected outcomes would typically be detailed in the contract's statement of work, outlining the research objectives and deliverables aimed at enhancing defense capabilities.
What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D?
The main risk with a Cost Plus Fixed Fee (CPFF) contract, especially in R&D, is that the contractor may have less incentive to control costs, as the fee is fixed regardless of the actual expenses. This can lead to cost overruns if the project scope expands or unforeseen technical challenges arise, potentially increasing the total expenditure beyond initial estimates.
How does this contract contribute to the overall effectiveness of the Defense Information Systems Agency?
This contract likely contributes to DISA's effectiveness by funding research and development that could lead to improved technological infrastructure, enhanced cybersecurity measures, or more efficient operational systems. By investing in advanced engineering services, DISA aims to maintain a technological edge and ensure its systems are robust and capable of meeting evolving defense needs.
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: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
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: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $31,702,272
Exercised Options: $31,180,451
Current Obligation: $30,623,431
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102808D2023
IDV Type: IDC
Timeline
Start Date: 2010-09-24
Current End Date: 2013-02-24
Potential End Date: 2013-02-24 00:00:00
Last Modified: 2018-01-26
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