DoD's $178.5M Electronic Attack Pod Upgrade Program Awarded to Northrop Grumman
Contract Overview
Contract Amount: $178,554,097 ($178.6M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-04-20
End Date: 2022-04-18
Contract Duration: 3,650 days
Daily Burn Rate: $48.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ELECTRONIC ATTACK POD UPGRADE PROGRAM
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $178.6 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: ELECTRONIC ATTACK POD UPGRADE PROGRAM Key points: 1. Significant investment in critical defense technology. 2. Sole awardee suggests potential for limited competition. 3. Long contract duration (10 years) warrants close monitoring. 4. Engineering services sector sees substantial contract value.
Value Assessment
Rating: fair
The contract value of $178.5M over 10 years for engineering services is substantial. Benchmarking against similar complex defense system upgrades is difficult without more specific data, but the duration and scope suggest a significant price point.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows for competitive pricing. However, the specific nature of advanced electronic warfare systems can sometimes limit the number of capable bidders, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are supporting the modernization of critical Air Force electronic attack capabilities, aiming to maintain technological superiority.
Public Impact
Enhances the electronic warfare capabilities of the U.S. Air Force. Supports national security by maintaining a technological edge. Potential for job creation within the defense contracting sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term contract duration may lead to cost overruns.
- Limited visibility into specific performance metrics.
- Potential for scope creep in complex upgrade programs.
Positive Signals
- Modernizes critical defense assets.
- Awarded through full and open competition.
- Supports technological advancement in EW.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense applications. Spending benchmarks for highly specialized electronic warfare upgrades are difficult to establish due to the unique nature of the technology and the limited number of qualified contractors.
Small Business Impact
The contract was awarded to Northrop Grumman Technical Services, Inc., a large prime contractor. There is no explicit indication of small business participation in the provided data, suggesting potential missed opportunities for subcontracting.
Oversight & Accountability
The Department of the Air Force is the contracting agency. Oversight would typically involve program management reviews, performance monitoring, and financial audits to ensure contract compliance and value for money.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration increases risk of cost escalation.
- Potential for limited effective competition despite 'full and open' status.
- Lack of small business participation noted.
- Complexity of EW upgrades can lead to unforeseen technical challenges.
Tags
engineering-services, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $178.6 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. ELECTRONIC ATTACK POD UPGRADE PROGRAM
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN TECHNICAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $178.6 million.
What is the period of performance?
Start: 2012-04-20. End: 2022-04-18.
What specific technological advancements does this upgrade program entail, and how do they justify the $178.5M investment?
The upgrade program likely focuses on enhancing the electronic attack capabilities of existing platforms to counter evolving threats. This could include improved jamming techniques, broader frequency coverage, enhanced signal processing, and integration of new sensor technologies. The investment is justified by the need to maintain air superiority and protect forces against sophisticated adversary electronic warfare systems.
Given the 10-year duration, what mechanisms are in place to manage cost growth and ensure the government receives fair value over time?
The contract is firm-fixed-price, which shifts some cost risk to the contractor. However, mechanisms like performance metrics, phased delivery schedules, and regular program reviews are crucial. The government should also have clauses for contract modifications or termination if performance or cost targets are not met, ensuring ongoing value assessment.
How does this program contribute to the overall effectiveness and readiness of the Air Force's electronic warfare capabilities?
This program directly contributes to the effectiveness and readiness by modernizing a key component of the Air Force's electronic attack arsenal. Upgraded pods provide superior performance against current and emerging threats, enhancing mission success rates, improving survivability of aircrews, and ensuring the platform remains relevant in contested electromagnetic environments.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2411 DULLES CORNER PARK STE 800, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $597,245,820
Exercised Options: $182,076,279
Current Obligation: $178,554,097
Subaward Activity
Number of Subawards: 5016
Total Subaward Amount: $2,288,348,524
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-04-20
Current End Date: 2022-04-18
Potential End Date: 2022-04-18 00:00:00
Last Modified: 2021-02-22
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