DoD Awards Northrop Grumman $17.1M for AN/APR-39 Radar Engineering Services
Contract Overview
Contract Amount: $17,119,053 ($17.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-09-12
End Date: 2025-09-01
Contract Duration: 2,546 days
Daily Burn Rate: $6.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: NEW CALL ORDER IS TO DEFINE THE PROGRAMMATIC ENGINEERING AND TECHNICAL TASK TO BE ACCOMPLISHED FOR PROVIDING ENGINEERING SERVICES FOR THE AN/APR-39 FAMILY SIGNAL DETECTING SET(RSDS)
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $17.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: NEW CALL ORDER IS TO DEFINE THE PROGRAMMATIC ENGINEERING AND TECHNICAL TASK TO BE ACCOMPLISHED FOR PROVIDING ENGINEERING SERVICES FOR THE AN/APR-39 FAMILY SIGNAL DETECTING SET(RSDS) Key points: 1. Significant contract for specialized radar system engineering. 2. Northrop Grumman is a major defense contractor, indicating strong incumbent capabilities. 3. Potential risk associated with sole-source awards and long-term contracts. 4. Spending falls within R&D sector, focusing on advanced defense technology.
Value Assessment
Rating: fair
The $17.1M award for engineering services is a substantial amount. Benchmarking is difficult without more detailed cost breakdowns, but the cost-plus-fixed-fee structure can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers for these critical engineering services.
Public Impact
Ensures continued development and sustainment of a key military electronic warfare system. Supports advanced technological capabilities for the U.S. Army. Potential for job creation within Northrop Grumman's engineering workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price transparency.
- Cost-plus-fixed-fee contract type carries inherent risk of cost escalation.
- Long contract duration (2018-2025) may not reflect current market efficiencies.
Positive Signals
- Addresses critical defense technology needs.
- Leverages established contractor expertise for a complex system.
- Provides long-term engineering support for vital equipment.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for maintaining technological superiority but requires careful oversight to ensure value for money.
Small Business Impact
The contract was awarded to Northrop Grumman, a large prime contractor. There is no indication of small business participation in this specific award, which is common for sole-source, specialized R&D contracts.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the fixed fee is reasonable and that the government is receiving fair value. Tracking performance against the engineering tasks is crucial.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Cost-plus-fixed-fee contract type
- Potential for cost overruns
- Long contract duration
- Limited transparency on pricing
Tags
research-and-development-in-the-physical, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. NEW CALL ORDER IS TO DEFINE THE PROGRAMMATIC ENGINEERING AND TECHNICAL TASK TO BE ACCOMPLISHED FOR PROVIDING ENGINEERING SERVICES FOR THE AN/APR-39 FAMILY SIGNAL DETECTING SET(RSDS)
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $17.1 million.
What is the period of performance?
Start: 2018-09-12. End: 2025-09-01.
What is the justification for the sole-source award, and how was the fixed fee determined to ensure a fair price?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. The fixed fee is usually negotiated based on historical data, independent cost estimates, and the contractor's proposed costs, aiming for a reasonable profit margin while incentivizing efficient performance.
How is the performance of Northrop Grumman being monitored to ensure the engineering tasks are completed effectively and efficiently under the cost-plus-fixed-fee structure?
Performance monitoring likely involves regular technical reviews, milestone tracking, and financial audits. The government contracting officer and technical representatives would assess progress against defined engineering requirements and deliverables. For cost-plus-fixed-fee, oversight focuses on ensuring costs are allowable and allocable, and that the fixed fee is earned through satisfactory performance.
What is the long-term strategy for the AN/APR-39 system, and how does this contract align with future modernization or sustainment plans?
This contract provides essential engineering services for the AN/APR-39 family. The long-term strategy would involve assessing the system's obsolescence, evolving threat landscape, and potential upgrades or replacements. This contract's alignment depends on whether it supports sustainment, incremental improvements, or lays the groundwork for future iterations of the signal detecting set.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 600 HICKS RD, ROLLING MEADOWS, IL, 60008
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: $17,119,053
Exercised Options: $17,119,053
Current Obligation: $17,119,053
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $1,354,322
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56KGU17D0006
IDV Type: IDC
Timeline
Start Date: 2018-09-12
Current End Date: 2025-09-01
Potential End Date: 2025-09-01 12:09:00
Last Modified: 2025-05-27
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