DoD Awards $372M to Northrop Grumman for Ballistic Missile Defense Sensor Exploitation
Contract Overview
Contract Amount: $372,060,768 ($372.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-03-02
End Date: 2026-03-04
Contract Duration: 2,924 days
Daily Burn Rate: $127.2K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IGF::OT::IGF CONTRACT. THE PRIMARY PURPOSE OF THIS TASK ORDER IS TO IDENTIFY AND OPERATIONALIZE OVERHEAD PERSISTENT INFRARED (OPIR) AND OTHER SENSOR EXPLOITATION CAPABILITIES WHICH PROVIDE EARLY INTERCEPT OPPORTUNITIES AND INCREASE RAID HANDLING OF THE BALLISTIC MISSILE DEFENSE SYSTEM (BMDS). THE DEVELOPED CAPABILITIES WILL BE INTEGRATED WITH THE COMMAND AND CONTROL, BATTLE MANAGEMENT, AND COMMUNICATIONS (C2BMC) PROGRAM OF RECORD AS WELL AS TO PERFORM DISCRETE EXPERIMENTATION AND DEVELOPMENT OF RELATED ACTIVITIES IN SUPPORT OF THE OVERALL MISSION.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35805
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $372.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF CONTRACT. THE PRIMARY PURPOSE OF THIS TASK ORDER IS TO IDENTIFY AND OPERATIONALIZE OVERHEAD PERSISTENT INFRARED (OPIR) AND OTHER SENSOR EXPLOITATION CAPABILITIES WHICH PROVIDE EARLY INTERCEPT OPPORTUNITIES AND INCREASE RAID HANDLING OF THE BALLISTIC MISSILE DEFENSE … Key points: 1. Significant investment in advanced missile defense capabilities. 2. Northrop Grumman is a key contractor in the defense sector. 3. Potential risks include integration challenges and evolving threat landscapes. 4. Focus on IT and R&D within the defense sector.
Value Assessment
Rating: good
The contract value of $372M over 8 years appears reasonable for advanced sensor exploitation capabilities. Benchmarking against similar large-scale defense IT and R&D contracts is difficult without more specific details on the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs compared to a competitive process. The justification for sole-sourcing is critical for assessing value.
Taxpayer Impact: Taxpayer funds are directed towards a single contractor without competitive pressure, potentially leading to less cost-efficient outcomes.
Public Impact
Enhances national security by improving ballistic missile defense. Supports technological advancement in sensor data processing. Creates high-skilled jobs in the aerospace and defense industry. Contributes to the modernization of military command and control systems.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns in cost-plus contracts
- Long contract duration increases risk exposure
Positive Signals
- Addresses a critical national security need
- Leverages established contractor expertise
- Focus on advanced technology development
Sector Analysis
This contract falls within the Information Technology and Research & Development sectors, specifically supporting the defense industry. Spending benchmarks for similar advanced sensor exploitation and BMDS integration programs are typically in the hundreds of millions of dollars.
Small Business Impact
The contract is awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of subcontracting opportunities for small businesses within the provided data, which could be a missed opportunity for economic inclusion.
Oversight & Accountability
The contract is managed by the Department of Defense's Missile Defense Agency. Oversight will be crucial to ensure cost control, performance, and adherence to the contract's objectives, especially given the cost-plus award fee structure.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost Plus Award Fee structure can incentivize cost growth.
- Integration with C2BMC presents technical challenges.
- Long contract duration increases exposure to changing requirements and threats.
- Lack of explicit small business participation noted.
Tags
custom-computer-programming-services, department-of-defense, al, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $372.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF CONTRACT. THE PRIMARY PURPOSE OF THIS TASK ORDER IS TO IDENTIFY AND OPERATIONALIZE OVERHEAD PERSISTENT INFRARED (OPIR) AND OTHER SENSOR EXPLOITATION CAPABILITIES WHICH PROVIDE EARLY INTERCEPT OPPORTUNITIES AND INCREASE RAID HANDLING OF THE BALLISTIC MISSILE DEFENSE SYSTEM (BMDS). THE DEVELOPED CAPABILITIES WILL BE INTEGRATED WITH THE COMMAND AND CONTROL, BATTLE MANAGEMENT, AND COMMUNICATIONS (C2BMC) PROGRAM OF RECORD AS WELL AS TO PERFORM DISCRETE EXPERIMENTATION AND DEVELOPMENT O
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 (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $372.1 million.
What is the period of performance?
Start: 2018-03-02. End: 2026-03-04.
What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for sole-sourcing is critical for understanding the rationale behind bypassing competition. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. The agency should have conducted a thorough market research and justification process to ensure fair and reasonable pricing, potentially through historical data, independent cost estimates, or negotiation with the sole provider.
How will the effectiveness of the operationalized OPIR and other sensor exploitation capabilities be measured and validated against evolving ballistic missile threats?
Measuring effectiveness requires clearly defined performance metrics and rigorous testing protocols. The Missile Defense Agency must establish objective criteria to assess how well the new capabilities identify threats, improve raid handling, and integrate with C2BMC. Continuous validation against simulated and real-world threat scenarios, along with feedback loops for system improvement, will be essential to ensure the capabilities remain relevant and effective.
What are the potential risks associated with integrating these new capabilities with the existing C2BMC Program of Record, and what mitigation strategies are in place?
Integration risks can include technical incompatibilities, data format issues, and disruption to existing operations. Mitigation strategies should involve phased integration, extensive testing in realistic environments, and close collaboration between Northrop Grumman and the C2BMC program team. Proactive identification of potential conflicts and the development of contingency plans are crucial to minimize negative impacts on the overall BMDS.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ014718R0003
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 213 WYNN DR, HUNTSVILLE, AL, 35805
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $392,983,624
Exercised Options: $392,983,624
Current Obligation: $372,060,768
Actual Outlays: $17,882,910
Subaward Activity
Number of Subawards: 230
Total Subaward Amount: $229,852,293
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HQ014718D0005
IDV Type: IDC
Timeline
Start Date: 2018-03-02
Current End Date: 2026-03-04
Potential End Date: 2026-03-04 00:00:00
Last Modified: 2025-09-23
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