DoD's $208M Northrop Grumman Contract for R&D Services Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $208,147,158 ($208.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2015-01-23
End Date: 2019-05-31
Contract Duration: 1,589 days
Daily Burn Rate: $131.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: LABOR/ODCS - BASE YEAR IGF::CL,CT::IGF
Place of Performance
Location: MADISON, MADISON County, ALABAMA, 35758
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $208.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LABOR/ODCS - BASE YEAR IGF::CL,CT::IGF Key points: 1. The contract awarded to Northrop Grumman Systems Corporation is for Research and Development in the Physical, Engineering, and Life Sciences. 2. Awarded under full and open competition, this contract aims to leverage broad market capabilities. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The base year value is substantial at over $208 million, indicating a significant scope of work.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type allows for cost reimbursement plus a fixed fee, which can incentivize contractors to incur costs to increase their fee. Without strong oversight, this can lead to higher-than-expected spending.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust process to solicit bids from a wide range of qualified vendors. This method generally promotes competitive pricing and innovation.
Taxpayer Impact: Full and open competition is intended to secure the best value for taxpayers by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
This significant investment in R&D by the Department of Defense could lead to advancements in physical, engineering, and life sciences relevant to national security. The contract's duration of nearly four years suggests a long-term commitment to research objectives. The use of a Cost Plus Fixed Fee structure warrants close monitoring to ensure costs remain aligned with the fixed fee and project goals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Full and open competition
- Awarded to a major defense contractor
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is critical for technological advancement and maintaining a competitive edge, with benchmarks varying widely based on the specific research domain.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large corporation, Northrop Grumman Systems Corporation. There is no indication of small business participation in this specific award.
Oversight & Accountability
The Cost Plus Fixed Fee contract type necessitates robust oversight from the Defense Information Systems Agency to ensure that costs are reasonable and allocable, and that the fixed fee is justified by the work performed.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type may lead to cost overruns.
- Long contract duration requires sustained oversight.
- Lack of detail on specific R&D outcomes.
- No indication of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $208.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LABOR/ODCS - BASE YEAR IGF::CL,CT::IGF
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 (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $208.1 million.
What is the period of performance?
Start: 2015-01-23. End: 2019-05-31.
What specific R&D objectives does this contract aim to achieve, and how will their successful completion benefit the Department of Defense?
The specific R&D objectives are not detailed in the provided data. However, contracts in this category typically aim to develop new technologies, improve existing systems, or conduct fundamental research to address future defense needs. Successful completion could lead to enhanced military capabilities, improved operational efficiency, or breakthroughs in areas critical to national security.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract structure in this context?
The primary risk with CPFF contracts is that the contractor may have less incentive to control costs since costs are reimbursed. While a fixed fee is included, the contractor could potentially incur higher costs to achieve the fee, leading to overall higher government expenditure than anticipated. Effective oversight is crucial to mitigate this risk.
How will the effectiveness of the research and development outcomes be measured and evaluated?
Effectiveness is typically measured through a combination of technical performance metrics, milestone achievement, and final deliverable assessments. For R&D contracts, this often involves peer reviews, prototype testing, and demonstrations of the technology's capabilities against defined requirements. The contracting agency will establish specific evaluation criteria and reporting mechanisms.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
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: $212,114,148
Exercised Options: $212,114,148
Current Obligation: $208,147,158
Subaward Activity
Number of Subawards: 523
Total Subaward Amount: $429,993,561
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102808D2023
IDV Type: IDC
Timeline
Start Date: 2015-01-23
Current End Date: 2019-05-31
Potential End Date: 2019-05-31 00:00:00
Last Modified: 2019-09-30
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