DoD Awards Northrop Grumman $97.8M for Air and Missile Defense Workstation Software Development
Contract Overview
Contract Amount: $97,838,078 ($97.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2011-03-15
End Date: 2016-09-16
Contract Duration: 2,012 days
Daily Burn Rate: $48.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: A 5 YEAR RESEARCH AND DEVELOPMENT CONTRACT FOR THE CONTINUED SOFTWARE DEVELOPMENT OF THE AIR AND MISSILE DEFENSE WORKSTATION. THE CONTRACT IS INCREMENTALLY FUNDED WITH RESEARCH,DEVELOPMENT, TEST&EVALUATION FUNDS, FOR A PORTION OF THE CONTRACT. THERE IS A BASIC YEAR AND FOUR OPTION YEARS FOR THE FIELD BASELINE MAINTENANCE.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $97.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: A 5 YEAR RESEARCH AND DEVELOPMENT CONTRACT FOR THE CONTINUED SOFTWARE DEVELOPMENT OF THE AIR AND MISSILE DEFENSE WORKSTATION. THE CONTRACT IS INCREMENTALLY FUNDED WITH RESEARCH,DEVELOPMENT, TEST&EVALUATION FUNDS, FOR A PORTION OF THE CONTRACT. THERE IS A BASIC YEAR AND FOUR OPTIO… Key points: 1. Contract focuses on continued software development for a critical defense system. 2. Significant funding allocated over five years for R&D and maintenance. 3. Sole-source award raises questions about competition and potential cost savings. 4. The IT and Defense sectors are heavily involved in such specialized development.
Value Assessment
Rating: questionable
The contract's total value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar R&D services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this significant R&D contract means taxpayers may not be receiving the best possible value for their investment.
Public Impact
Ensures continued development of a key defense system. Supports advanced technology in air and missile defense. Potential for cost inefficiencies due to sole-source nature. Long-term commitment to a single contractor for critical software.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns
- Long-term reliance on one vendor
Positive Signals
- Continued development of critical defense technology
- Stable funding for R&D
Sector Analysis
This contract falls within the Defense and IT sectors, characterized by high R&D investment and specialized engineering services. Benchmarks for similar sole-source R&D contracts are difficult to establish without competitive data.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency, which is responsible for oversight. However, the sole-source nature limits the effectiveness of competitive oversight mechanisms.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost escalation
- Long-term vendor dependency
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $97.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. A 5 YEAR RESEARCH AND DEVELOPMENT CONTRACT FOR THE CONTINUED SOFTWARE DEVELOPMENT OF THE AIR AND MISSILE DEFENSE WORKSTATION. THE CONTRACT IS INCREMENTALLY FUNDED WITH RESEARCH,DEVELOPMENT, TEST&EVALUATION FUNDS, FOR A PORTION OF THE CONTRACT. THERE IS A BASIC YEAR AND FOUR OPTION YEARS FOR THE FIELD BASELINE MAINTENANCE.
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $97.8 million.
What is the period of performance?
Start: 2011-03-15. End: 2016-09-16.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves unique capabilities or proprietary technology held by the contractor. Agencies are required to conduct market research and price analyses to ensure the price is fair and reasonable, even without competition. However, the absence of competing bids inherently limits the ability to achieve the most competitive pricing.
What are the risks associated with relying on a single vendor for the continued development of this critical defense workstation?
Risks include vendor lock-in, potential for price increases over time, and reduced incentive for innovation if competition is absent. A single vendor's financial instability or strategic shifts could also disrupt development. Contingency plans for knowledge transfer or alternative solutions should be considered.
How will the effectiveness of the software development be measured and ensured under this sole-source contract?
Effectiveness is typically measured through performance metrics, milestones, and acceptance testing defined in the contract. The Defense Contract Management Agency would monitor progress against these metrics. However, without competitive pressure, the contractor might have less incentive to exceed baseline performance expectations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W31P4Q10R0106
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
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: $378,162,006
Exercised Options: $369,253,476
Current Obligation: $97,838,078
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $2,019,019
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-03-15
Current End Date: 2016-09-16
Potential End Date: 2016-09-16 00:00:00
Last Modified: 2025-04-01
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