Northrop Grumman Awarded $75M for APR-39E(V)2 System Development by Army
Contract Overview
Contract Amount: $74,996,883 ($75.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2019-09-30
End Date: 2022-12-30
Contract Duration: 1,187 days
Daily Burn Rate: $63.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: THE PURPOSE OF THIS TASK ORDER IS TO DEFINE THE PROGRAMMTIC, ENGINEERING AND TECHNICAL TASKS TO BE ACCOMPLISHED FOR THE SYSTEM DEVELOPMENT FOR THE APR-39E(V)2 ARMY ENGINEERING.
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $75.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THE PURPOSE OF THIS TASK ORDER IS TO DEFINE THE PROGRAMMTIC, ENGINEERING AND TECHNICAL TASKS TO BE ACCOMPLISHED FOR THE SYSTEM DEVELOPMENT FOR THE APR-39E(V)2 ARMY ENGINEERING. Key points: 1. Significant contract value of $75M for system development. 2. Sole-source award to Northrop Grumman Systems Corporation. 3. Focus on research and development in physical, engineering, and life sciences. 4. Potential for long-term system sustainment and upgrades.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific deliverables and comparable R&D contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a sole-source award, meaning there was no open competition. This limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The lack of competition raises concerns about the optimal use of taxpayer funds for this R&D effort.
Public Impact
Enhances Army's electronic warfare capabilities. Supports advanced radar system development. Contributes to national defense technology advancements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Cost-plus contract type can inflate costs.
- Lack of small business participation noted.
Positive Signals
- Critical system development for Army.
- Award to established defense contractor.
- Long-term contract duration.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement but requires careful oversight due to its inherent uncertainties and potential for cost growth.
Small Business Impact
The data indicates no specific set-aside for small businesses (sb: false). This suggests that small businesses may not have had a significant opportunity to participate in this contract, potentially limiting broader economic impact.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is performing efficiently and that costs are reasonable. The Department of the Army should monitor progress and expenditures diligently.
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
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of small business participation
- Research and Development contract risks
- Potential for cost escalation
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 $75.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THE PURPOSE OF THIS TASK ORDER IS TO DEFINE THE PROGRAMMTIC, ENGINEERING AND TECHNICAL TASKS TO BE ACCOMPLISHED FOR THE SYSTEM DEVELOPMENT FOR THE APR-39E(V)2 ARMY ENGINEERING.
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 $75.0 million.
What is the period of performance?
Start: 2019-09-30. End: 2022-12-30.
What specific technological advancements are expected from the APR-39E(V)2 system development, and how do they align with current and future Army operational needs?
The APR-39E(V)2 system is expected to provide advanced radar capabilities for threat detection and identification, enhancing the Army's electronic warfare posture. Its development aligns with the need for modernized sensing and targeting systems to counter evolving adversary capabilities on the battlefield.
Given the sole-source award and cost-plus fixed fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure fair pricing for the government?
While the contract type presents inherent risks, the Army likely employs detailed cost monitoring, performance reviews, and milestone-based payments. Robust negotiation strategies and independent cost estimates would be crucial to ensure fair pricing and control expenditures throughout the contract's lifecycle.
How will the effectiveness of the APR-39E(V)2 system be measured post-development, and what are the key performance indicators (KPIs) to assess its impact on Army operations?
Effectiveness will be measured through rigorous testing and evaluation, focusing on metrics such as detection range, accuracy, response time, and integration with existing Army networks. Key performance indicators will likely include successful mission accomplishment rates, reduction in fratricide incidents, and improved situational awareness in complex environments.
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: $74,996,883
Exercised Options: $74,996,883
Current Obligation: $74,996,883
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: 2019-09-30
Current End Date: 2022-12-30
Potential End Date: 2022-12-30 00:00:00
Last Modified: 2025-04-26
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