DoD awards Northrop Grumman $71.6M for Missile and Space Systems R&D
Contract Overview
Contract Amount: $71,604,889 ($71.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2005-12-22
End Date: 2008-12-22
Contract Duration: 1,096 days
Daily Burn Rate: $65.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: 200603!600380!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M05C0216 !A!N! !N! ! !20051222!20081221!008324949!004179453!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!1 SPACE PARK BLVD !REDONDO BEACH !CA!90278!60018!037!06!REDONDO BEACH !LOS ANGELES !CALIFORNIA!+000002900000!N!N!000059236349!AC21!RDTE/MISSILE AND SPACE SYSTEMS-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!V!2!004!A! !Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !
Place of Performance
Location: REDONDO BEACH, LOS ANGELES County, CALIFORNIA, 90278
Plain-Language Summary
Department of Defense obligated $71.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200603!600380!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M05C0216 !A!N! !N! ! !20051222!20081221!008324949!004179453!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!1 SPACE PARK BLVD !REDONDO BEACH !CA!90278!60018!037!06!REDONDO BEACH !LOS … Key points: 1. Contract awarded to Northrop Grumman for missile and space systems research. 2. Significant funding allocated for basic research in a critical defense sector. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration is approximately three years, ending in December 2008.
Value Assessment
Rating: good
The contract value of $71.6 million over three years appears reasonable for advanced R&D in missile and space systems. Benchmarking against similar complex research contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently to secure advanced research capabilities.
Public Impact
Supports advancements in national defense capabilities related to space and strategic defense. Invests in cutting-edge research that could lead to technological breakthroughs. The contract contributes to the aerospace and defense industry's innovation ecosystem.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is relatively short for long-term R&D projects.
- Specific deliverables and performance metrics are not detailed in the provided data.
Positive Signals
- Awarded through full and open competition.
- Focuses on critical R&D for national security.
- Contractor has a strong track record in the aerospace sector.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on missile and space systems. Spending in this area is crucial for maintaining technological superiority in defense.
Small Business Impact
The data indicates the prime contractor is Northrop Grumman Systems Corporation, a large business. There is no information provided on small business participation or subcontracting goals.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, which is responsible for ensuring contractor compliance and performance. Oversight is critical for R&D contracts to ensure progress and accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Contract duration may be insufficient for complex R&D.
- Lack of detailed performance metrics in public data.
- Potential for cost growth inherent in CPIF contracts.
- Reliance on a single large contractor for critical R&D.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $71.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200603!600380!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M05C0216 !A!N! !N! ! !20051222!20081221!008324949!004179453!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!1 SPACE PARK BLVD !REDONDO BEACH !CA!90278!60018!037!06!REDONDO BEACH !LOS ANGELES !CALIFORNIA!+000002900000!N!N!000059236349!AC21!RDTE/MISSILE AND SPACE SYSTEMS-BASIC RESEARCH !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !3! ! ! ! ! !999
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 $71.6 million.
What is the period of performance?
Start: 2005-12-22. End: 2008-12-22.
What are the key performance indicators and expected outcomes for this missile and space systems R&D contract?
The provided data does not specify the key performance indicators or expected outcomes for this contract. Typically, R&D contracts would outline specific research objectives, milestones, deliverables such as prototypes or reports, and success criteria to measure the effectiveness of the research and development efforts.
How does the cost-plus-incentive-fee structure impact the risk and potential cost overruns for this contract?
A Cost-Plus-Incentive-Fee (CPIF) contract shares cost risks between the government and the contractor. While it incentivizes the contractor to control costs and meet performance targets, there's still a risk of cost overruns if targets are not met or if unforeseen technical challenges arise, requiring careful monitoring by the agency.
What is the long-term strategic value of this specific R&D investment for the Department of Defense?
The long-term strategic value lies in advancing U.S. capabilities in space and missile defense, crucial for national security. Investments in basic research can lead to disruptive technologies that deter adversaries, enhance surveillance, and ensure dominance in these critical domains, potentially shaping future defense strategies and operational effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SEALED BID
Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1 SPACE PARK BLVD, REDONDO BEACH, CA, 90278
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-12-22
Current End Date: 2008-12-22
Potential End Date: 2008-12-22 00:00:00
Last Modified: 2025-12-31
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