DoD Awards $18.77M R&D Contract to Northrop Grumman for Research and Development
Contract Overview
Contract Amount: $18,773,851 ($18.8M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Defense
Start Date: 2007-01-01
End Date: 2024-01-25
Contract Duration: 6,233 days
Daily Burn Rate: $3.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: ISSUANCE OF DELIVERY ORDER 0003
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $18.8 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: ISSUANCE OF DELIVERY ORDER 0003 Key points: 1. Contract awarded to a large, established defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spans a significant duration, indicating a long-term project. 4. Research and Development focus aligns with technological advancement needs.
Value Assessment
Rating: good
The contract value of $18.77 million is substantial for R&D. Without specific benchmarks for similar R&D contracts in this niche, a precise pricing assessment is difficult, but the duration suggests a comprehensive scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for research and development, aiming for technological advancements that could yield long-term benefits and national security improvements.
Public Impact
Advancement of physical, engineering, and life sciences through dedicated research. Potential for new technologies and innovations to emerge from the contract. Investment in the defense sector's research capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (6233 days) may lead to cost overruns if not managed effectively.
- Cost Plus Award Fee (CPA) structure can incentivize performance but requires robust oversight to control costs.
Positive Signals
- Full and open competition suggests a fair and competitive process.
- Focus on R&D aligns with strategic national interests.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541710. Spending in this sector is crucial for innovation and maintaining a technological edge, particularly in defense.
Small Business Impact
The data indicates this contract was awarded to Northrop Grumman Information Technology Inc. There is no specific information provided regarding small business participation or subcontracting.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Award Fee structure necessitates careful oversight to ensure value for money.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration (6233 days).
- Cost Plus Award Fee (CPA) pricing structure.
- Research and Development projects inherently carry technical and schedule risks.
- Potential for scope creep in long-term R&D efforts.
Tags
research-and-development-in-the-physical, department-of-defense, ma, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.8 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. ISSUANCE OF DELIVERY ORDER 0003
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 $18.8 million.
What is the period of performance?
Start: 2007-01-01. End: 2024-01-25.
What specific R&D objectives does this contract aim to achieve, and how will success be measured?
The contract aims to advance research and development in physical, engineering, and life sciences. Success will likely be measured through milestones, deliverables, and the achievement of specific technical objectives outlined in the contract's statement of work. The 'award fee' component suggests performance metrics tied to the quality and impact of the research outcomes.
What are the potential risks associated with a long-duration Cost Plus Award Fee R&D contract?
Risks include potential cost overruns due to the extended timeline and the inherent uncertainties in R&D. The CPA structure, while incentivizing, requires diligent oversight to prevent scope creep and ensure costs remain reasonable relative to performance. Unforeseen technical challenges or shifts in research priorities could also impact the contract's effectiveness and value.
How does this contract contribute to the Department of Defense's overall technological advancement and strategic goals?
This contract contributes by investing in foundational and applied research within critical scientific domains. The outcomes are expected to yield technological advancements that enhance national security capabilities, potentially leading to new systems, improved processes, or a deeper understanding of complex scientific challenges relevant to defense.
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
Address: 7575 COLSHIRE DRIVE, MCLEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,826,679
Exercised Options: $25,826,679
Current Obligation: $18,773,851
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA863205D2453
IDV Type: IDC
Timeline
Start Date: 2007-01-01
Current End Date: 2024-01-25
Potential End Date: 2024-01-25 00:00:00
Last Modified: 2024-01-25
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