DoD Spends $42.8M on Northrop Grumman Infrared Countermeasures for R&D
Contract Overview
Contract Amount: $42,782,606 ($42.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2012-01-31
End Date: 2019-08-31
Contract Duration: 2,769 days
Daily Burn Rate: $15.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: COMMON INFRARED COUNTERMEASURE
Place of Performance
Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $42.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: COMMON INFRARED COUNTERMEASURE Key points: 1. Significant investment in advanced defense technology. 2. Northrop Grumman is a major defense contractor, indicating potential market concentration. 3. R&D spending can carry inherent risks of technological obsolescence or failure. 4. Focus on physical and engineering sciences research.
Value Assessment
Rating: fair
The contract value of $42.8M over approximately 7.6 years suggests a moderate annual spend. Without specific per-unit data or comparable contracts, assessing value for money is difficult. The Cost Plus Fixed Fee structure allows for cost overruns, potentially impacting overall value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific details of the competition and the number of bidders are not provided, making it hard to fully assess the competitive pressure on pricing.
Taxpayer Impact: Taxpayer funds are supporting advanced research and development in defense technology. The effectiveness of this spending in achieving its R&D goals will determine the ultimate taxpayer benefit.
Public Impact
Enhances national security through advanced defense capabilities. Supports technological innovation in the aerospace and defense sector. Potential for spin-off technologies benefiting civilian applications. Contributes to the U.S. technological advantage in infrared countermeasures.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs.
- Long contract duration increases risk of scope creep or changing requirements.
- Lack of specific performance metrics makes outcome assessment difficult.
Positive Signals
- Awarded under full and open competition.
- Focus on critical defense R&D area.
- Contractor is a well-established industry leader.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector, specifically related to defense applications. The $42.8M spend over nearly 8 years is a substantial investment for a single R&D project, reflecting the high costs associated with developing advanced defense technologies.
Small Business Impact
The data indicates this contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no information provided to suggest significant subcontracting opportunities for small businesses on this specific award.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, indicating standard oversight for a Department of Defense procurement. Further details on specific oversight mechanisms, performance reviews, and audits would be needed for a comprehensive assessment.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost overrun potential due to CPFF structure.
- Risk of technological obsolescence over the contract duration.
- Limited transparency on specific R&D outcomes and performance metrics.
- Potential for contractor lock-in due to specialized knowledge.
Tags
research-and-development-in-the-physical, department-of-defense, il, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. COMMON INFRARED COUNTERMEASURE
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 $42.8 million.
What is the period of performance?
Start: 2012-01-31. End: 2019-08-31.
What specific technological advancements are expected from this $42.8M R&D investment, and how will their success be measured?
The specific technological advancements are not detailed in the provided data. However, R&D contracts typically aim to develop novel capabilities or improve existing ones. Success measurement would likely involve technical reviews, prototype testing, and demonstration of performance against defined requirements. Without these specifics, it's difficult to gauge the expected return on investment.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to control costs and ensure the government receives fair value?
Cost Plus Fixed Fee (CPFF) contracts provide the contractor with reimbursement for allowable costs plus a fixed fee representing profit. To control costs, the government relies on robust auditing of contractor expenditures, negotiation of fair fee amounts, and clear definition of contract scope. However, CPFF inherently carries a higher risk of cost overruns compared to fixed-price contracts, as the government bears the cost risk.
How does this investment in infrared countermeasures align with current and future threat landscapes, and what is the risk of obsolescence?
Investing in infrared countermeasures is crucial for maintaining an advantage against evolving aerial threats. The risk of obsolescence is inherent in R&D, especially in rapidly advancing fields like aerospace. The long duration of this contract (over 7 years) increases this risk. Continuous monitoring of technological advancements and potential adaptation of the R&D path would be necessary to mitigate obsolescence.
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: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
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: $42,782,606
Exercised Options: $42,782,606
Current Obligation: $42,782,606
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-01-31
Current End Date: 2019-08-31
Potential End Date: 2019-08-31 00:00:00
Last Modified: 2020-07-06
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