DoD's $27.5M USCYBERCOM Contract Awarded to Northrop Grumman for R&D Services
Contract Overview
Contract Amount: $27,515,964 ($27.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2013-05-13
End Date: 2018-11-12
Contract Duration: 2,009 days
Daily Burn Rate: $13.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: USCYBERCOM CI/DIB
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $27.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: USCYBERCOM CI/DIB Key points: 1. Significant investment in cybersecurity research and development. 2. Northrop Grumman, a major defense contractor, secured the award. 3. Potential risks include vendor lock-in and the evolving nature of cyber threats. 4. Spending falls within the R&D sector, specifically focused on physical and engineering sciences.
Value Assessment
Rating: good
The contract value of $27.5 million over approximately 5 years appears reasonable for specialized R&D services in the defense sector. Benchmarking against similar complex R&D contracts would provide further validation.
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 typically leads to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for critical cybersecurity research, aiming to enhance national security capabilities.
Public Impact
Enhances USCYBERCOM's capabilities through advanced research. Supports technological innovation in the defense sector. Potential for spillover benefits into commercial cybersecurity solutions. Contributes to the nation's overall cyber defense posture.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is lengthy, potentially leading to cost overruns if requirements change.
- Reliance on a single large contractor for critical R&D.
Positive Signals
- Awarded through full and open competition.
- Focus on critical national security area (cybersecurity).
- Contractor has significant experience in defense systems.
Sector Analysis
This contract falls under Research and Development in Physical, Engineering, and Life Sciences, excluding biotechnology. Spending in this sector is crucial for maintaining technological superiority, with benchmarks varying widely based on the specific research area and project scope.
Small Business Impact
The data indicates this contract was awarded to a large corporation, Northrop Grumman. There is no explicit information on small business participation or subcontracting within this award.
Oversight & Accountability
Oversight would typically be managed by the Defense Information Systems Agency (DISA) and USCYBERCOM. Accountability for R&D outcomes and adherence to contract terms are essential.
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
- Contract duration
- Potential for scope creep
- Limited visibility into small business participation
- Complexity of R&D outcomes measurement
Tags
research-and-development-in-the-physical, department-of-defense, md, 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. USCYBERCOM CI/DIB
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 $27.5 million.
What is the period of performance?
Start: 2013-05-13. End: 2018-11-12.
What is the expected return on investment for this R&D spending in terms of enhanced cybersecurity capabilities?
Quantifying the ROI for R&D is challenging due to its inherent uncertainty. However, success would be measured by the development of new technologies, improved threat detection, and enhanced defensive strategies that demonstrably strengthen USCYBERCOM's operational effectiveness against evolving cyber threats.
What are the primary risks associated with relying on Northrop Grumman for this critical cybersecurity R&D?
Key risks include potential cost overruns if project scope expands, vendor lock-in limiting future flexibility, and the possibility that the developed technologies may not fully meet evolving operational needs. Ensuring clear performance metrics and regular reviews can mitigate these risks.
How effectively will the outcomes of this R&D translate into practical, deployable cybersecurity solutions for the DoD?
Effectiveness hinges on strong program management, clear communication between researchers and end-users, and a phased approach to development and testing. Regular feedback loops and agile methodologies can help ensure that R&D efforts align with practical deployment requirements and operational realities.
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: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,450,718
Exercised Options: $30,179,102
Current Obligation: $27,515,964
Subaward Activity
Number of Subawards: 30
Total Subaward Amount: $12,079,635
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: 2013-05-13
Current End Date: 2018-11-12
Potential End Date: 2018-11-12 00:00:00
Last Modified: 2019-01-17
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