Northrop Grumman awarded $24.7M for Robust Electric Laser Initiative, a 2010 R&D contract

Contract Overview

Contract Amount: $24,748,597 ($24.7M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2010-08-12

End Date: 2019-01-20

Contract Duration: 3,083 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ROBUST ELECTRIC LASER INITIATIVE

Place of Performance

Location: REDONDO BEACH, LOS ANGELES County, CALIFORNIA, 90278

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $24.7 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: ROBUST ELECTRIC LASER INITIATIVE Key points: 1. Contract awarded for research and development in physical sciences, engineering, and life sciences. 2. Full and open competition was utilized for this definitive contract. 3. The contract duration was over 8 years, indicating a long-term R&D effort. 4. Northrop Grumman Systems Corp. was the sole awardee. 5. The contract type was Cost Plus Fixed Fee, common for R&D projects. 6. The contract was managed by the Defense Contract Management Agency. 7. The North American Industry Classification System (NAICS) code is 541712.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specific nature and historical award date. The Cost Plus Fixed Fee (CPFF) structure means costs were reimbursed plus a fixed fee, which can lead to cost overruns if not managed tightly. Without comparable contracts for similar laser initiatives from the same period, assessing whether the $24.7 million represented good value is difficult. The long duration suggests significant development was intended, but the ultimate success and cost-effectiveness would depend on the project's outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple potential bidders were allowed to submit proposals. This method is generally preferred for ensuring fair pricing and access to the widest range of capabilities. The fact that it was a definitive contract awarded to a single entity suggests that after the competitive process, Northrop Grumman Systems Corp. was selected as the most capable or best-value offeror for this specific research and development initiative.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

This contract primarily benefits the Department of Defense by advancing research in laser technology. The services delivered are focused on research and development, aiming to create new or improved capabilities. The geographic impact is likely concentrated in areas where Northrop Grumman conducts its R&D activities, primarily California. Workforce implications include employment for scientists, engineers, and support staff involved in advanced research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not rigorously monitored.
Long contract durations (over 8 years) increase the risk of scope creep or changing technological landscapes.
Specific details on performance metrics and deliverables are not readily available, making outcome assessment difficult.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Northrop Grumman is a major defense contractor with extensive experience in R&D.
The contract addresses a specific technological area (laser initiative) potentially critical for defense applications.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541712, which covers R&D in physical sciences, engineering, and life sciences (excluding biotechnology). This is a highly specialized area often involving significant investment by government agencies, particularly the Department of Defense, to maintain technological superiority. The market for advanced R&D in areas like laser technology is competitive, with major defense contractors and specialized research firms vying for these contracts. Comparable spending benchmarks are difficult to establish without knowing the specific technological goals and maturity of the laser initiative.

Small Business Impact

There is no indication that this contract included small business set-asides, as the 'ss' (small business set-aside) field is false. Similarly, the 'sb' (small business participation) field is also false, suggesting no specific subcontracting goals were mandated for small businesses on this particular contract. This implies that the primary contractor, Northrop Grumman, likely handled the majority of the work internally or subcontracted to other large businesses, with limited direct impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract was provided by the Defense Contract Management Agency (DCMA), a key agency responsible for ensuring contractors meet performance and financial requirements. The Cost Plus Fixed Fee (CPFF) contract type necessitates close monitoring of expenditures to ensure costs are reasonable and allocable to the contract. Transparency regarding the specific R&D milestones and outcomes would depend on the reporting requirements stipulated in the contract and the agency's public disclosure policies.

Related Government Programs

Advanced Weapons Systems Research
Directed Energy Programs
Department of Defense Research and Development Budgets
Laser Technology Development Contracts

Risk Flags

Long contract duration increases risk of obsolescence or changing requirements.
CPFF contract type requires diligent cost oversight to prevent overruns.
Lack of specific performance metrics makes outcome assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.7 million to NORTHROP GRUMMAN SYSTEMS CORP. ROBUST ELECTRIC LASER INITIATIVE

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2010-08-12. End: 2019-01-20.

What was the specific technological objective of the "ROBUST ELECTRIC LASER INITIATIVE"?

The specific technological objective of the "ROBUST ELECTRIC LASER INITIATIVE" was not detailed in the provided data. However, given the context of a Department of Defense contract awarded to Northrop Grumman Systems Corp. under R&D, it likely aimed to advance the capabilities of electric laser systems for potential military applications. This could include areas such as directed energy weapons, advanced targeting systems, or communication technologies. The "robust" descriptor suggests a focus on reliability, power output, or operational resilience. Further investigation into defense R&D priorities during the 2010-2019 period would be needed to pinpoint the exact goals.

How does the Cost Plus Fixed Fee (CPFF) structure typically impact contractor performance and cost control in R&D contracts?

The Cost Plus Fixed Fee (CPFF) structure reimburses the contractor for allowable costs incurred plus a predetermined fixed fee, representing profit. For R&D contracts, CPFF is often used when the scope of work is not precisely defined, and innovation is paramount. While it allows flexibility for exploration, it can incentivize contractors to incur higher costs, as their fee remains fixed regardless of the total expenditure. Effective oversight by the contracting agency is crucial to scrutinize costs, ensure they are reasonable and allocable, and prevent unnecessary spending. Without stringent controls, CPFF contracts can exceed initial budget estimates, although the fixed fee provides some predictability on profit margins.

What is the significance of the contract duration (3083 days) for this R&D initiative?

A contract duration of 3083 days, approximately 8.4 years, for the "ROBUST ELECTRIC LASER INITIATIVE" signifies a long-term, potentially foundational research and development effort. Such extended periods are common in R&D, especially for complex technological advancements where breakthroughs are not guaranteed and iterative development is necessary. This duration suggests the project was intended to explore significant technological challenges, mature concepts, and potentially move towards prototype development or early-stage application testing. It also implies a substantial commitment of resources and a strategic focus by the Department of Defense on the targeted laser technology over an extended timeframe.

What are the typical risks associated with long-term R&D contracts like this one?

Long-term R&D contracts, such as the "ROBUST ELECTRIC LASER INITIATIVE" spanning over 8 years, carry several inherent risks. One primary risk is technological obsolescence, where advancements by competitors or changes in the threat landscape could render the developed technology outdated before completion. Scope creep is another significant risk, where project objectives may expand or change over time, leading to cost overruns and schedule delays. Contractor performance can also degrade over extended periods, or key personnel might leave. Furthermore, the initial assumptions and requirements may become less relevant due to evolving strategic priorities or scientific understanding, necessitating costly adjustments or even project termination.

How does the 'full and open competition' award method typically influence the final cost and quality of R&D outcomes?

The 'full and open competition' award method is designed to maximize the pool of potential offerors, thereby increasing the likelihood of receiving innovative proposals and competitive pricing. For R&D contracts, this means that a wide range of companies, from large defense contractors to specialized research firms, can compete. This competitive pressure generally leads to better value for the government, as contractors strive to offer the most compelling technical solutions at the most attractive price points. While R&D inherently involves uncertainty, a well-executed full and open competition can result in higher quality research outcomes and more cost-effective development compared to sole-source or limited competition approaches, by ensuring the government selects the best possible technical approach and contractor.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Solicitation ID: W9113M09R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: M/S E1-2035, ONE SPACE PARK BLVD, REDONDO BEACH, CA, 90278

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: $60,094,045

Exercised Options: $47,436,325

Current Obligation: $24,748,597

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $9,083,753

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline