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 ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTDEFENSE (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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