Northrop Grumman awarded $20M for R&D in physical sciences, highlighting a 1711-day contract duration
Contract Overview
Contract Amount: $20,036,546 ($20.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2014-09-23
End Date: 2019-05-31
Contract Duration: 1,711 days
Daily Burn Rate: $11.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF BASE AWARD- 15 MONTH PERIOD OF PERFORMAN
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $20.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF BASE AWARD- 15 MONTH PERIOD OF PERFORMAN Key points: 1. Contract value of $20M for R&D services suggests a significant investment in specialized scientific research. 2. The 'Research and Development in the Physical, Engineering, and Life Sciences' category indicates a focus on advanced scientific exploration. 3. A 1711-day duration points to a long-term research objective requiring sustained effort and development. 4. The contract was awarded under full and open competition, implying a broad search for qualified contractors. 5. Northrop Grumman's involvement suggests a reliance on established defense and aerospace contractors for complex R&D projects. 6. The Cost Plus Fixed Fee (CPFF) contract type indicates that costs are reimbursed, plus a fixed fee, which can incentivize efficiency. 7. The absence of small business set-asides suggests the scope of work may not have been tailored for smaller entities.
Value Assessment
Rating: fair
The $20 million award over approximately 4.7 years represents a substantial investment in R&D. Benchmarking this specific R&D contract is challenging due to the specialized nature of the work and the unique capabilities of contractors like Northrop Grumman. However, the CPFF structure, while common for R&D, requires careful oversight to ensure costs remain reasonable and the fixed fee provides adequate incentive for performance. Without more granular data on the specific research outcomes and comparable projects, a definitive value-for-money assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that the solicitation was made available to all responsible sources. This approach typically fosters a competitive environment, allowing the government to solicit proposals from a wide range of potential contractors. The fact that 8 bids were received suggests significant interest and a healthy level of competition for this R&D opportunity, which can lead to better pricing and innovative solutions.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs and encouraging the best possible technical solutions through a wider pool of bidders.
Public Impact
The primary beneficiaries are likely the Department of Defense and potentially other government agencies requiring advancements in physical and engineering sciences. The services delivered involve cutting-edge research and development, contributing to technological innovation and national security. The geographic impact is primarily within the United States, where the research activities will be conducted and where the technological advancements will be applied. Workforce implications include the employment of highly skilled scientists, engineers, and researchers, fostering expertise in specialized fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in CPFF contracts if not closely monitored.
- Complexity of R&D projects can lead to unforeseen challenges and delays.
- Reliance on a single large contractor may limit opportunities for smaller, innovative firms in specific niches.
Positive Signals
- Award to a reputable contractor with a proven track record in defense R&D.
- Full and open competition suggests a thorough evaluation process and potential for competitive pricing.
- Long contract duration allows for sustained focus and development of complex research objectives.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense and national security, driving innovation in materials, systems, and technologies. The market for such R&D is dominated by large aerospace and defense contractors, with significant government funding allocated annually. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the DoD and other federal agencies for similar scientific pursuits.
Small Business Impact
The contract was not awarded as a small business set-aside, and the 'sb' field is false. This suggests that the scope of work was likely too broad or required specialized capabilities typically found in larger organizations. While there's no direct subcontracting information provided, large prime contractors like Northrop Grumman often engage small businesses for specific components or services, though the extent of this is not detailed here. The absence of a set-aside means direct opportunities for small businesses to prime this specific contract were limited.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The CPFF contract type necessitates rigorous financial oversight to track expenditures and ensure the fixed fee is earned appropriately. Transparency is generally maintained through contract award databases and reporting requirements, though specific R&D project details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Programs
- Advanced Technology Development Contracts
- Engineering Services Contracts
- Physical Sciences Research Grants
- Aerospace Technology Development
Risk Flags
- Cost Overrun Risk
- Schedule Delay Risk
- Technical Feasibility Risk
- Contract Oversight Intensity
Tags
research-and-development, department-of-defense, northrop-grumman, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, physical-sciences, engineering-sciences, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF BASE AWARD- 15 MONTH PERIOD OF PERFORMAN
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 $20.0 million.
What is the period of performance?
Start: 2014-09-23. End: 2019-05-31.
What is Northrop Grumman's track record with similar R&D contracts for the Department of Defense?
Northrop Grumman Systems Corporation has a long and extensive history of performing complex research and development contracts for the Department of Defense across various scientific and engineering disciplines. They are a major defense contractor known for their work in aerospace, defense systems, and advanced technologies. Analyzing their past performance on similar Cost Plus Fixed Fee (CPFF) contracts, particularly those in physical and engineering sciences, would reveal their ability to manage budgets, meet technical milestones, and deliver innovative solutions within the specified parameters. Historical data often shows a pattern of successful delivery on large-scale, long-term R&D initiatives, though like any large contractor, specific projects may have faced challenges or required adjustments.
How does the $20 million award compare to typical R&D spending in the physical sciences by the DoD?
The $20 million award for R&D in physical, engineering, and life sciences is a significant but not exceptionally large sum within the context of the Department of Defense's overall R&D budget, which can run into tens of billions of dollars annually. This specific award likely represents a focused project within a broader research area. To benchmark effectively, one would need to compare it against other contracts for similar research topics (e.g., materials science, advanced physics, engineering simulations) awarded over comparable timeframes. However, R&D contracts of this magnitude are common for developing next-generation technologies and maintaining a technological edge, indicating a strategic investment rather than routine procurement.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D revolve around cost control and contractor efficiency. While the government reimburses the contractor for allowable costs, the fixed fee provides a set profit margin. If costs escalate significantly due to unforeseen technical challenges, poor project management, or scope creep, the contractor may be incentivized to cut corners on quality or performance to protect their fixed fee. Conversely, if the contractor is highly efficient and manages costs well, they may achieve a higher effective profit margin than anticipated. Robust government oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for taxpayer money.
What does the 1711-day duration imply about the nature of the research being conducted?
A contract duration of 1711 days, approximately 4.7 years, strongly suggests that the research and development project is complex, long-term, and likely involves multiple phases of investigation, experimentation, and refinement. Such extended timelines are typical for foundational research, the development of novel technologies, or the exploration of scientific principles that require significant time for discovery and validation. It implies that the project is not focused on immediate, short-term deliverables but rather on advancing fundamental knowledge or creating capabilities that will mature over several years, potentially leading to future product development or strategic advantages.
How does the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code (541712) typically translate into contract deliverables?
The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' covers a broad spectrum of scientific inquiry. Deliverables under such contracts are highly variable but commonly include research reports, technical data packages, prototypes, experimental results, scientific publications, feasibility studies, and potentially software or algorithms. For this specific contract with Northrop Grumman, given their profile, deliverables might involve advanced materials research, novel sensor development, complex system modeling and simulation, or foundational work for future defense platforms. The exact nature of the deliverables would be detailed in the contract's Statement of Work (SOW).
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 › OTHER RESEARCH/DEVELOPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 8
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1580A 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: $20,119,701
Exercised Options: $20,119,701
Current Obligation: $20,036,546
Subaward Activity
Number of Subawards: 195
Total Subaward Amount: $176,381,757
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-09-23
Current End Date: 2019-05-31
Potential End Date: 2019-05-31 00:00:00
Last Modified: 2025-12-31
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)