DoD Awards Northrop Grumman $19.1M for R&D Services Under Full and Open Competition
Contract Overview
Contract Amount: $19,120,618 ($19.1M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Defense
Start Date: 2008-01-01
End Date: 2008-12-31
Contract Duration: 365 days
Daily Burn Rate: $52.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: A&AS DELIVERY ORDER 0004
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $19.1 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: A&AS DELIVERY ORDER 0004 Key points: 1. Contract awarded to a large, established defense contractor. 2. Research and Development sector, NAICS 541710, indicates specialized scientific services. 3. Full and open competition suggests a competitive bidding process. 4. Cost Plus Award Fee contract type can incentivize performance but requires careful oversight.
Value Assessment
Rating: fair
The contract value of $19.1M for a 1-year duration appears reasonable for R&D services. Benchmarking against similar R&D contracts would be necessary for a definitive assessment, but the award fee structure suggests potential for value if performance targets are met.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were allowed to submit proposals. This method is generally expected to drive competitive pricing and ensure the government receives the best value.
Taxpayer Impact: The competitive nature of the award process is intended to ensure taxpayer funds are used efficiently for the R&D services procured.
Public Impact
Supports critical research and development efforts for the Department of Defense. Potential for technological advancements stemming from the R&D services. Contract performance could impact future defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can lead to cost overruns if not managed tightly.
- Lack of specific performance metrics makes it difficult to assess award fee justification.
- Contract duration of 1 year may limit long-term R&D project continuity.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process.
- Contractor is a well-established entity with significant experience.
- R&D focus aligns with strategic defense objectives.
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for innovation but can be complex to benchmark due to the specialized nature of the work.
Small Business Impact
The contract was awarded to Northrop Grumman Information Technology Inc., a large business. There is no indication of small business participation in this specific delivery order.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates robust oversight by the Defense Contract Management Agency to ensure performance standards are met and award fees are justified, preventing potential waste.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Award Fee contract type requires diligent oversight.
- Lack of specific performance metrics in the provided data.
- Potential for cost growth based on performance incentives.
- Contract duration is relatively short for R&D projects.
Tags
research-and-development-in-the-physical, department-of-defense, ma, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.1 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. A&AS DELIVERY ORDER 0004
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 $19.1 million.
What is the period of performance?
Start: 2008-01-01. End: 2008-12-31.
How does the awarded amount compare to the estimated value or budget for this specific R&D effort?
Without access to the original solicitation or internal budget documents, it's challenging to definitively compare the awarded amount of $19.1M to the estimated value. However, the contract type (Cost Plus Award Fee) suggests the final cost could fluctuate based on performance. Further analysis would require comparing this to similar R&D contracts awarded by the DoD for comparable services.
What are the key performance indicators (KPIs) tied to the award fee structure, and how are they being monitored?
The specific Key Performance Indicators (KPIs) linked to the award fee for this contract are not detailed in the provided data. Effective oversight would require the Defense Contract Management Agency to have clearly defined, measurable, achievable, relevant, and time-bound (SMART) KPIs. Regular monitoring and transparent reporting on progress against these KPIs are essential for justifying any award fees paid.
What is the potential long-term impact of this R&D effort on future defense technologies or capabilities?
The long-term impact of this R&D effort is contingent on the specific research undertaken and its successful development into deployable technologies. As a delivery order under a broader contract, it likely contributes to ongoing research initiatives. The success of this specific $19.1M award will be measured by its contribution to advancing the DoD's technological edge and operational effectiveness in the future.
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
Financial Breakdown
Contract Ceiling: $20,858,771
Exercised Options: $20,858,771
Current Obligation: $19,120,618
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA863205D2453
IDV Type: IDC
Timeline
Start Date: 2008-01-01
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2016-09-20
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