Northrop Grumman awarded $493M for CNTPO support, a significant R&D investment by the Department of the Army
Contract Overview
Contract Amount: $493,446,478 ($493.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2008-09-26
End Date: 2014-12-31
Contract Duration: 2,287 days
Daily Burn Rate: $215.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: CNTPO SUPPORT - BASE YEAR
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $493.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CNTPO SUPPORT - BASE YEAR Key points: 1. The contract's value suggests a substantial commitment to research and development activities. 2. Full and open competition indicates a broad market search, potentially leading to competitive pricing. 3. The contract duration of over 6 years implies a long-term strategic need for these services. 4. The firm-fixed-price structure shifts cost risk to the contractor, a common practice for R&D. 5. The primary agency is the Department of Defense, with the Department of the Army as the specific service. 6. The NAICS code 541710 points to research and development in physical, engineering, and life sciences.
Value Assessment
Rating: good
Benchmarking the value of this contract is challenging without specific deliverables. However, $493 million over approximately six years for specialized R&D support is within the expected range for large-scale defense research initiatives. The firm-fixed-price contract type suggests that the government has a clear understanding of the scope and has negotiated a price that includes contractor profit and risk. Further analysis would require comparing the specific services rendered to similar R&D contracts within the Department of Defense.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The presence of 3 bidders (as indicated by 'no': 3) suggests a reasonable level of competition for this specialized R&D requirement.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the most advantageous offers available.
Public Impact
The primary beneficiaries are likely the Department of Defense and the Department of the Army, receiving critical research and development support. The services delivered are in the realm of physical, engineering, and life sciences R&D, contributing to technological advancements. The geographic impact is primarily within Virginia, where the contract is managed or performed. Workforce implications include employment opportunities for scientists, engineers, and support staff within Northrop Grumman and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the scope of R&D proves more complex than initially anticipated, despite the FFP structure.
- Dependence on a single large contractor for critical R&D functions could pose a long-term strategic risk.
- The long duration might lead to technological obsolescence if R&D focus shifts rapidly.
Positive Signals
- The firm-fixed-price contract type incentivizes contractor efficiency and cost control.
- Full and open competition suggests a robust process for selecting the best value offer.
- Northrop Grumman is a well-established defense contractor with significant R&D capabilities.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is characterized by high specialization, significant government investment, and a limited number of large, experienced contractors. Comparable spending benchmarks would involve analyzing other large-scale R&D contracts awarded by the Department of Defense to prime contractors for advanced technology development.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded to Northrop Grumman, there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting is not detailed in the provided data and would require further investigation into the contract's specific clauses and performance.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified R&D outcomes. Transparency is generally maintained through contract award databases and reporting requirements, though specific R&D progress details may be sensitive.
Related Government Programs
- Department of Defense Research and Development Programs
- Army Futures Command Initiatives
- Advanced Technology Development Contracts
- Science and Technology Support Services
Risk Flags
- Long-term contract duration may pose risks of technological obsolescence.
- Dependence on a single large contractor for critical R&D.
Tags
department-of-defense, department-of-the-army, research-and-development, northrop-grumman-systems-corporation, full-and-open-competition, firm-fixed-price, delivery-order, virginia, naics-541710, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $493.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CNTPO SUPPORT - BASE YEAR
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $493.4 million.
What is the period of performance?
Start: 2008-09-26. End: 2014-12-31.
What specific R&D projects or areas does this contract cover under CNTPO support?
The provided data identifies the contract as 'CNTPO SUPPORT - BASE YEAR' and categorizes it under NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences). However, the specific R&D projects or technological areas are not detailed. CNTPO likely refers to a specific program or entity within the Department of the Army focused on advanced research. To understand the specific R&D, one would need to consult the contract's statement of work (SOW) or related program documentation. This could range from materials science, advanced computing, sensor technology, or other areas critical to national defense.
How does the $493 million contract value compare to other similar R&D contracts awarded by the Department of the Army?
The $493 million contract value over approximately six years represents a significant investment in R&D. To benchmark this, one would compare it against other large-scale R&D contracts awarded by the Department of the Army or Department of Defense for similar research domains (e.g., physical sciences, engineering, life sciences). For instance, contracts for developing next-generation weapon systems, advanced materials, or sophisticated simulation capabilities often fall into this multi-million dollar range. Without access to a comprehensive database of comparable contracts and their specific scopes, a precise comparison is difficult, but this value is consistent with major R&D efforts.
What are the key performance indicators (KPIs) or milestones associated with this contract?
The provided data does not specify the key performance indicators (KPIs) or milestones for this contract. For a firm-fixed-price R&D contract, KPIs would typically be tied to the successful completion of research phases, delivery of prototypes, technical reports, or achievement of specific performance metrics for developed technologies. These would be detailed in the contract's Statement of Work (SOW) and potentially in a separate Performance Work Statement (PWS). The contracting officer and program managers would monitor progress against these defined milestones.
What is Northrop Grumman's track record in executing large-scale R&D contracts for the Department of Defense?
Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in research and development across various domains, including aerospace, defense electronics, and information systems. They have a long history of executing large, complex R&D contracts for the Department of Defense. Their track record generally includes successful development of advanced technologies and systems. However, like any large contractor, specific contract performance can vary, and a detailed review of their past performance on similar R&D contracts, including any past performance issues or successes, would be necessary for a complete assessment.
What is the historical spending trend for CNTPO support or similar R&D categories within the Department of the Army?
The provided data only includes information for a single contract award. To assess historical spending trends for CNTPO support or similar R&D categories within the Department of the Army, one would need to analyze multi-year spending data from sources like the Federal Procurement Data System (FPDS) or agency budget reports. This would involve identifying all contracts awarded for CNTPO support and related R&D activities over several fiscal years, aggregating the spending, and looking for patterns of increase, decrease, or stability. Such an analysis would reveal the Army's sustained investment levels in this R&D area.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W9113M06R0014
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 12900 FEDERAL SYSTEMS PARK DR, FAIRFAX, VA, 22033
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: $527,744,095
Exercised Options: $514,632,056
Current Obligation: $493,446,478
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9113M07D0007
IDV Type: IDC
Timeline
Start Date: 2008-09-26
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2025-04-23
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