DoD Awards $19.2M for STARLITE Engineering via Cost Plus Fixed Fee Contract to Northrop Grumman
Contract Overview
Contract Amount: $19,215,111 ($19.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2019-05-03
End Date: 2022-05-31
Contract Duration: 1,124 days
Daily Burn Rate: $17.1K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: STARLITE ENGINEERING CHANGE PROPOSAL/TECHNOLOGY INSERTION.
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $19.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: STARLITE ENGINEERING CHANGE PROPOSAL/TECHNOLOGY INSERTION. Key points: 1. Contract awarded to a large, established defense contractor. 2. Focus on engineering services suggests potential for innovation and technological advancement. 3. Cost Plus Fixed Fee structure may incentivize cost overruns if not closely monitored. 4. Limited competition raises questions about price discovery and potential value for taxpayer dollars.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure, while allowing flexibility for evolving engineering needs, can lead to higher costs compared to fixed-price contracts. Benchmarking against similar CPFF engineering services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a sole-source or limited competition award. This lack of competition limits the government's ability to secure the best possible price through market forces and may result in a higher overall cost.
Taxpayer Impact: The absence of full and open competition for this $19.2 million contract means taxpayers may not be receiving the most cost-effective solution available.
Public Impact
Potential for advanced technology development impacting military capabilities. Taxpayer funds are directed towards a single, non-competed contractor. Lack of transparency in the procurement process may hinder public trust. Long contract duration (1124 days) suggests a significant, ongoing project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost Plus Fixed Fee structure
- Potential for cost overruns
Positive Signals
- Award to established contractor
- Focus on engineering services
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for defense modernization and technological advancement. Spending in this sector can vary significantly based on geopolitical factors and the pace of technological change.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of small business subcontracting in the provided data, suggesting limited direct benefit to small businesses from this specific award.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight would typically involve contract performance monitoring, cost audits, and ensuring adherence to the CPFF terms to manage taxpayer funds effectively.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of full and open competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Limited transparency on specific services
- No clear small business participation
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. STARLITE ENGINEERING CHANGE PROPOSAL/TECHNOLOGY INSERTION.
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 $19.2 million.
What is the period of performance?
Start: 2019-05-03. End: 2022-05-31.
What specific engineering services are being procured under this STARLITE contract, and how do they align with current Army modernization priorities?
The STARLITE contract is for engineering services, likely encompassing research, development, design, and testing related to specific technologies or systems. Its alignment with Army modernization priorities would depend on the specific technological focus, such as advanced materials, avionics, or command and control systems, which are not detailed in the award notice.
Given the limited competition and CPFF structure, what measures are in place to ensure cost control and prevent contractor inefficiencies?
With a CPFF contract and limited competition, robust oversight is critical. The Army should employ stringent monitoring of contractor expenditures, regular performance reviews, and potentially independent cost analyses. Clear milestones and deliverables, coupled with defined fixed-fee targets, can also incentivize efficiency and prevent uncontrolled cost escalation.
What is the anticipated long-term impact of the technology insertion funded by this contract on the Army's operational capabilities?
The long-term impact hinges on the success of the 'technology insertion' aspect. If the engineering services lead to successful integration of advanced technologies, it could significantly enhance the capabilities of existing platforms or enable new operational concepts. However, without knowing the specific technologies, the impact remains speculative.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL 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: 1580B W NURSERY RD, LINTHICUM HEIGHTS, MD, 21090
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: $19,351,484
Exercised Options: $19,351,484
Current Obligation: $19,215,111
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W56KGY19D0002
IDV Type: IDC
Timeline
Start Date: 2019-05-03
Current End Date: 2022-05-31
Potential End Date: 2022-05-31 00:00:00
Last Modified: 2025-06-20
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