DoD's $18.6M R&D contract for advanced technology development awarded to Northrop Grumman

Contract Overview

Contract Amount: $18,622,518 ($18.6M)

Contractor: Northrop Grumman Information Technology Inc

Awarding Agency: Department of Defense

Start Date: 2005-01-31

End Date: 2005-12-31

Contract Duration: 334 days

Daily Burn Rate: $55.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200505!000039!5700!FA8632!ASC/TMK !FA863205D2453 !A!N! !Y!0001 ! !20050131!20051231!064677243!016435559!016435559!N!NORTHROP GRUMMAN INFORMATION T!7575 COLSHIRE DRIVE !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000001131887!N!N!000000000000!AC53!RDTE/WEAPONS-ADV TECH DEV !S1 !SERVICES !362 !BMDS !541710!E! !5!B!S! ! ! !20200930!B! ! !A! !A!U!S!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: 200505!000039!5700!FA8632!ASC/TMK !FA863205D2453 !A!N! !Y!0001 ! !20050131!20051231!064677243!016435559!016435559!N!NORTHROP GRUMMAN INFORMATION T!7575 COLSHIRE DRIVE !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000001131887!N!N!000000000000!AC53!RDTE/WEAPONS-ADV TE… Key points: 1. Contract awarded for advanced technology development, indicating investment in future capabilities. 2. Northrop Grumman, a major defense contractor, secured this award. 3. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs. 4. The period of performance is less than a year, suggesting a focused, short-term project. 5. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 6. This award represents a small portion of overall defense R&D spending.

Value Assessment

Rating: fair

The contract value of $18.6 million for a less than one-year period of performance for R&D services appears within a reasonable range for advanced technology development. However, without specific benchmarks for the 'Weapons-Advanced Tech Dev' category and the 'BMDS' program, a precise value-for-money assessment is challenging. The Cost Plus Award Fee (CPAF) structure means the final cost could exceed the initial estimate based on performance, introducing cost uncertainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process is generally favorable for price discovery and achieving better value. However, the specific number of bidders is not provided, which limits the assessment of the intensity of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces, ensuring that the government receives competitive pricing for its investments.

Public Impact

The primary beneficiary is the Department of Defense, which gains access to advanced technological capabilities. The services delivered are related to research and development in weapons and advanced technologies. The geographic impact is likely concentrated within the contractor's facilities and potentially at DoD research sites. Workforce implications include specialized R&D personnel employed by Northrop Grumman.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee (CPAF) contracts can lead to costs exceeding initial estimates if performance targets are aggressively pursued or if cost controls are insufficient.
The short performance period may indicate a project with inherent risks or a phase of a larger, longer-term effort.
Lack of specific details on the 'BMDS' program makes it difficult to assess the true scope and potential risks of the R&D.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Northrop Grumman is a well-established defense contractor with a track record in advanced technology development.
The contract supports critical R&D efforts for national security.

Sector Analysis

This contract falls within the broader Defense sector, specifically focusing on Research and Development (R&D) for advanced weapons and technology. The R&D market within the defense industry is characterized by significant government investment, long development cycles, and the involvement of specialized contractors like Northrop Grumman. Benchmarking this specific $18.6 million award is difficult without more granular data on comparable R&D projects within the 'Weapons-Advanced Tech Dev' category.

Small Business Impact

There is no indication that this contract was set aside for small businesses. As a large contract awarded to a major defense contractor, it is unlikely to have direct subcontracting opportunities for small businesses unless specified within the contract's statement of work, which is not detailed here. The primary focus appears to be on the prime contractor's capabilities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with terms and conditions. The Cost Plus Award Fee structure implies performance monitoring to determine award fees. Transparency is limited by the proprietary nature of R&D, but contract awards are publicly reported.

Related Government Programs

Ballistic Missile Defense System (BMDS)
Advanced Technology Development Programs
Department of Defense Research and Development Contracts

Risk Flags

Cost Plus Award Fee (CPAF) contract type introduces potential for cost overruns.
Short performance period (less than one year) may indicate a project phase or inherent risks.
Limited public information on specific R&D objectives and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. 200505!000039!5700!FA8632!ASC/TMK !FA863205D2453 !A!N! !Y!0001 ! !20050131!20051231!064677243!016435559!016435559!N!NORTHROP GRUMMAN INFORMATION T!7575 COLSHIRE DRIVE !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000001131887!N!N!000000000000!AC53!RDTE/WEAPONS-ADV TECH DEV !S1 !SERVICES !362 !BMDS !541710!E! !5!B!S! ! ! !20200930!B! ! !A! !A!U!S!2!001!B! !Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.6 million.

What is the period of performance?

Start: 2005-01-31. End: 2005-12-31.

What is the specific nature of the 'Weapons-Advanced Tech Dev' and 'BMDS' research being conducted under this contract?

The provided data identifies the contract's purpose as 'RDTE/WEAPONS-ADV TECH DEV' and mentions 'BMDS' (Ballistic Missile Defense System). This suggests the research is focused on developing new technologies or improving existing ones for advanced weapon systems, likely with a specific application or component related to missile defense. The exact nature of the R&D, such as specific materials, algorithms, or system integrations, is not detailed in the summary data. Such R&D contracts are crucial for maintaining technological superiority but often involve high levels of technical risk and proprietary information, limiting public disclosure of specific project details.

How does the $18.6 million value compare to other similar R&D contracts for advanced weapons technology?

Comparing the $18.6 million value requires access to a database of similar R&D contracts within the 'Weapons-Advanced Tech Dev' category, specifically for the BMDS program or comparable advanced defense systems. Without such a benchmark, it's difficult to definitively state if this is high or low. However, R&D contracts can vary significantly in cost based on the complexity, duration, and technological novelty. Given that Northrop Grumman is a major defense contractor and the subject is advanced technology, $18.6 million for a less-than-one-year period could be considered a moderate investment for a specific research phase or component development within a larger program.

What are the key performance indicators (KPIs) or milestones associated with the Cost Plus Award Fee (CPAF) structure for this contract?

The specific Key Performance Indicators (KPIs) or milestones for this Cost Plus Award Fee (CPAF) contract are not detailed in the provided summary data. In a CPAF contract, the government and contractor typically agree on specific performance objectives, technical milestones, delivery schedules, and cost management targets. The 'award fee' portion is determined by the government's evaluation of the contractor's performance against these pre-defined criteria. Northrop Grumman would earn a base fee plus an award fee based on how well they meet or exceed these objectives. Without the contract's statement of work and award fee plan, these specific metrics remain internal to the contracting parties.

What is Northrop Grumman's track record with similar R&D contracts for the Department of Defense?

Northrop Grumman is a major defense contractor with extensive experience in research, development, and production of advanced technologies for the Department of Defense. They have a long history of working on complex programs, including missile defense, aerospace systems, and advanced electronics. While specific details on past BMDS-related R&D contracts are not in this data, their overall profile suggests a strong capability and established relationship with the DoD for such work. Their track record would likely include both successes and challenges typical of large-scale, high-risk R&D endeavors.

What is the historical spending trend for 'Weapons-Advanced Tech Dev' or similar R&D categories within the DoD?

Historical spending trends for 'Weapons-Advanced Tech Dev' and similar R&D categories within the DoD are generally characterized by significant and often increasing investment, driven by evolving geopolitical landscapes and the need for technological superiority. While the specific NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences) encompasses a broad range of R&D, defense-specific R&D spending, particularly in areas like advanced weapons and missile defense, typically constitutes a substantial portion of the overall DoD R&D budget. Fluctuations can occur based on strategic priorities, budget cycles, and the perceived threat environment.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 7575 COLSHIRE DRIVE, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA863205D2453

IDV Type: IDC

Timeline