DoD's $23.5M R&D Contract Awarded to Northrop Grumman for Research Services
Contract Overview
Contract Amount: $23,502,726 ($23.5M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Defense
Start Date: 2008-01-01
End Date: 2010-06-30
Contract Duration: 911 days
Daily Burn Rate: $25.8K/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
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Defense obligated $23.5 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: A&AS Key points: 1. Significant R&D investment by the Department of Defense. 2. Northrop Grumman, a major defense contractor, secured the award. 3. The contract type (Cost Plus Award Fee) can lead to higher costs if not managed carefully. 4. Research and Development in Physical, Engineering, and Life Sciences is a critical sector.
Value Assessment
Rating: fair
The Cost Plus Award Fee (CPAF) contract type allows for contractor reimbursement of allowable costs plus a fee that is incentive-based. While intended to encourage performance, CPAF contracts can sometimes result in higher overall costs compared to fixed-price contracts if performance targets are not well-defined or achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust bidding process. However, the specific pricing structure (CPAF) means the final price is not fixed upfront and depends on performance outcomes, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used for R&D, which can yield long-term benefits but requires careful oversight to ensure value for money given the CPAF structure.
Public Impact
Investment in advanced research and development capabilities. Potential for technological advancements benefiting national security. Contract awarded to a large, established defense contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure may lead to cost overruns.
- Contract duration is substantial (911 days).
Positive Signals
- Awarded through full and open competition.
- Focus on critical R&D sector.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for innovation and maintaining technological superiority, with significant government investment typically seen across various agencies.
Small Business Impact
The data indicates this contract was awarded to Northrop Grumman Information Technology Inc., a large corporation. There is no indication of small business participation in this specific award.
Oversight & Accountability
The contract's CPAF structure necessitates strong oversight from the Defense Contract Management Agency to ensure performance targets are met and costs are controlled effectively. Regular reviews and audits would be critical.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Lack of transparency on specific R&D deliverables and success metrics.
- Contract awarded to a large incumbent, potentially limiting broader innovation.
- Long contract duration requires sustained oversight.
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 $23.5 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. A&AS
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 $23.5 million.
What is the period of performance?
Start: 2008-01-01. End: 2010-06-30.
What specific R&D objectives were prioritized under this contract, and how were they measured to determine the award fee?
The specific R&D objectives would be detailed in the contract's Statement of Work (SOW). Performance metrics and evaluation criteria for the award fee would be outlined to measure the contractor's success in achieving milestones, technical advancements, or other key performance indicators relevant to the research being conducted.
What are the potential risks associated with a Cost Plus Award Fee contract in an R&D context, and how can they be mitigated?
Risks include potential for cost overruns if the fee structure incentivizes higher spending without commensurate value, and difficulty in defining clear, measurable R&D outcomes. Mitigation involves robust performance metrics, stringent cost controls, and active government oversight to ensure alignment with research goals and prevent contractor inefficiency.
How does this contract contribute to the Department of Defense's overall technological advancement and long-term strategic goals?
This contract likely supports specific technological development programs aimed at enhancing defense capabilities or addressing emerging threats. The R&D outcomes could lead to new systems, improved processes, or critical scientific understanding, contributing to the DoD's strategic advantage and future operational effectiveness.
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: $26,561,282
Exercised Options: $26,561,282
Current Obligation: $23,502,726
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA863205D2453
IDV Type: IDC
Timeline
Start Date: 2008-01-01
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 00:00:00
Last Modified: 2016-09-20
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