GSA Awards Northrop Grumman $64M for B1 Radar Sustaining Engineering Support
Contract Overview
Contract Amount: $63,982,709 ($64.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: General Services Administration
Start Date: 2021-02-12
End Date: 2026-08-27
Contract Duration: 2,022 days
Daily Burn Rate: $31.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: B1 RADAR SUSTAINING ENGINEERING SUPPORT
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145
State: Oklahoma Government Spending
Plain-Language Summary
General Services Administration obligated $64.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: B1 RADAR SUSTAINING ENGINEERING SUPPORT Key points: 1. Significant contract value of $63.98M for critical engineering services. 2. Northrop Grumman, a major defense contractor, holds this award. 3. Potential risk associated with long-term sustainment contracts. 4. Engineering Services sector, NAICS 541330, is the focus.
Value Assessment
Rating: fair
The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. Benchmarking against similar sustainment engineering contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific price discovery mechanisms and their effectiveness are not detailed.
Taxpayer Impact: Taxpayer funds are being used for essential defense system sustainment. The Time and Materials pricing model warrants close monitoring to ensure cost efficiency.
Public Impact
Ensures continued operational readiness of the B1 bomber's radar systems. Supports a major defense contractor, contributing to the aerospace and defense industry. Long-term nature of the contract implies ongoing need for specialized engineering expertise. Potential for follow-on contracts or modifications based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Long contract duration
- Sole contractor for sustainment
Positive Signals
- Full and open competition
- Essential defense system support
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense systems. Spending benchmarks for radar sustainment engineering can vary widely based on system complexity and age.
Small Business Impact
This contract was awarded to a large business (Northrop Grumman) and does not indicate any specific set-asides or participation goals for small businesses.
Oversight & Accountability
The General Services Administration (GSA) is overseeing this contract. Oversight will be crucial to manage the Time and Materials aspect and ensure cost-effectiveness throughout the contract's life.
Related Government Programs
- Engineering Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Long contract duration may not adapt well to rapid technological changes.
- Dependence on a single contractor for critical sustainment.
- Lack of transparency on specific cost drivers and profit margins.
Tags
engineering-services, general-services-administration, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $64.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. B1 RADAR SUSTAINING ENGINEERING SUPPORT
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $64.0 million.
What is the period of performance?
Start: 2021-02-12. End: 2026-08-27.
What is the projected total cost if the contract reaches its maximum duration and all options are exercised?
The provided data shows an award amount of $63,982,709.20 with an estimated completion date in August 2026. Without specific details on labor rates, hours, and material costs, projecting the final cost is speculative. However, the current value suggests a significant investment in sustaining engineering for the B1 radar system over the contract period.
How will GSA ensure cost control and prevent potential overruns with the Time and Materials pricing structure?
GSA's oversight will be critical. This includes rigorous monitoring of labor hours, rates, and material costs, comparing them against established benchmarks and historical data. Implementing clear performance metrics and requiring detailed justification for all expenditures will be key to managing costs effectively under a T&M contract.
What is the long-term strategy for B1 radar system sustainment beyond this contract's expiration?
The long-term strategy is not detailed in the provided data. This contract covers sustainment engineering through August 2026. Future sustainment plans would likely involve reassessing the system's lifecycle, considering upgrades or replacements, and potentially re-competing sustainment services to ensure continued technological relevance and cost-effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $70,113,452
Exercised Options: $70,113,452
Current Obligation: $63,982,709
Actual Outlays: $-3,655
Subaward Activity
Number of Subawards: 185
Total Subaward Amount: $22,800,713
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU325
IDV Type: IDC
Timeline
Start Date: 2021-02-12
Current End Date: 2026-08-27
Potential End Date: 2026-08-27 00:00:00
Last Modified: 2026-03-10
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other General Services Administration Contracts
- Software Life Cycle Development — $1.4B (Science Applications International Corporation)
- Task Order (TO) 47qfca21f0018 IS Hereby Awarded to Booz Allen Hamilton, Inc. (BAH) to Provide Enterprise Level Data to the Ousd(c), and ITS Strategic Partners (I.E., DOD Fourth Estate, DOD Departments, and IC Community) — $1.4B (Booz Allen Hamilton Inc)
- Federal Contract — $1.2B (Booz Allen Hamilton Inc)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (Science Applications International Corporation)
- Task Order Award — $1.1B (Booz Allen Hamilton Inc)