DoD awards Northrop Grumman $39.9M for prototype sensor system development and fabrication
Contract Overview
Contract Amount: $39,906,594 ($39.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-09-28
End Date: 2022-06-30
Contract Duration: 1,371 days
Daily Burn Rate: $29.1K/day
Sector: Defense
Official Description: ENGINEERING SERVICES: THE PURPOSE OF THIS TASK IS TO DESIGN, DEVELOP AND FABRICATE A PROTOTYPE SENSOR SYSTEM FOR LAB TESTING AND OPEN AIR RANGE TESTING.
Place of Performance
Location: Ohio, 45246
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $39.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ENGINEERING SERVICES: THE PURPOSE OF THIS TASK IS TO DESIGN, DEVELOP AND FABRICATE A PROTOTYPE SENSOR SYSTEM FOR LAB TESTING AND OPEN AIR RANGE TESTING. Key points: 1. Contract focuses on designing, developing, and fabricating a prototype sensor system for testing. 2. Significant duration of 1371 days suggests a complex and lengthy development process. 3. Awarded by the Defense Microelectronics Activity, indicating a focus on specialized microelectronic components. 4. The contract value is substantial, reflecting the advanced nature of the technology being developed. 5. Northrop Grumman's extensive experience in defense contracting likely influenced their selection for this project.
Value Assessment
Rating: fair
The contract value of $39.9 million for a prototype sensor system over nearly four years appears to be within a reasonable range for complex defense development. Benchmarking against similar prototype development contracts for advanced sensor technology is difficult without more specific technical details. However, the duration and scope suggest a significant investment in research and development, where upfront costs can be high. Further analysis would require comparing the delivered capabilities and performance metrics against the cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The competition level for this contract is not specified in the provided data. If it was competed, the number of bidders and the nature of the solicitation (e.g., full and open, or set-aside) would be crucial for assessing price discovery. If it was sole-source, it implies a unique capability or proprietary technology held by Northrop Grumman, which could lead to higher costs due to limited market alternatives.
Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition typically drives down prices and encourages innovation, leading to better deals for the government. Limited or no competition can result in higher expenditures for the same or lesser capability.
Public Impact
The primary beneficiaries are the Department of Defense, which will receive a prototype sensor system for testing and potential future deployment. The services delivered include design, development, and fabrication of a specialized sensor system. The geographic impact is likely concentrated within defense research facilities and testing ranges. Workforce implications may include specialized engineers, technicians, and manufacturing personnel at Northrop Grumman and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of transparency regarding the competition method could obscure potential cost savings.
- The long contract duration might indicate potential for cost overruns if not managed effectively.
- Dependence on a single contractor for a critical prototype could pose supply chain risks.
Positive Signals
- Award to a major defense contractor like Northrop Grumman suggests a high likelihood of technical expertise and project completion.
- Development of advanced sensor technology aligns with modernization efforts within the DoD.
- The substantial investment indicates a commitment to advancing defense capabilities.
Sector Analysis
This contract falls within the defense electronics and sensor technology sector. The market for advanced sensor systems is characterized by high R&D costs, long development cycles, and significant government investment. Companies like Northrop Grumman are key players, often competing for large, complex contracts that require specialized expertise and secure facilities. Comparable spending benchmarks would involve looking at other DoD contracts for similar prototype development or advanced sensor integration projects.
Small Business Impact
The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals. Northrop Grumman, as a large prime contractor, may have obligations to subcontract portions of this work to small businesses. The absence of explicit set-aside information suggests this was likely not a primary focus for this specific award, though it is a standard consideration in broader defense contracting.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting activity, the Defense Microelectronics Activity, and potentially program executive offices within the Department of Defense. Accountability measures would be tied to contract milestones, performance metrics, and delivery schedules. Transparency is often limited for classified or sensitive defense projects, but contract awards and basic details are usually publicly available through systems like FPDS.
Related Government Programs
- Advanced Sensor Development Programs
- Defense Microelectronics Initiatives
- Prototype and Demonstration Contracts
- Northrop Grumman Defense Contracts
Risk Flags
- Lack of Competition Data
- Potential for Cost Overruns
- Technical Risk in Prototype Development
Tags
defense, department-of-defense, northrop-grumman, prototype-development, sensor-system, engineering-services, delivery-order, large-contract, research-and-development, microelectronics
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ENGINEERING SERVICES: THE PURPOSE OF THIS TASK IS TO DESIGN, DEVELOP AND FABRICATE A PROTOTYPE SENSOR SYSTEM FOR LAB TESTING AND OPEN AIR RANGE TESTING.
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 Microelectronics Activity).
What is the total obligated amount?
The obligated amount is $39.9 million.
What is the period of performance?
Start: 2018-09-28. End: 2022-06-30.
What specific type of sensor system is being developed, and what are its intended applications?
The provided data describes the contract's purpose as the design, development, and fabrication of a 'prototype sensor system for lab testing and open air range testing.' However, it does not specify the exact type of sensor (e.g., radar, infrared, acoustic, optical) or its intended military applications. This level of detail is often classified or considered proprietary during the early stages of development to maintain a technological advantage. Further information would likely be available through official DoD program descriptions or technical documentation, if declassified.
How does the $39.9 million cost compare to similar prototype sensor development contracts within the DoD?
Directly comparing the $39.9 million cost without knowing the specific technical capabilities, complexity, and intended performance of the sensor system is challenging. Prototype development for advanced defense technologies can vary widely in cost. Contracts for less complex sensors might range from a few million dollars, while highly sophisticated systems requiring extensive R&D, specialized materials, and rigorous testing could easily exceed this amount. The 1371-day duration (nearly four years) suggests a significant R&D effort, which typically commands higher costs than simpler manufacturing or service contracts. A more accurate comparison would require access to detailed technical specifications and a benchmark of similar developmental efforts.
What are the key performance indicators (KPIs) or milestones associated with this contract, and how is Northrop Grumman's performance being measured?
The provided data does not detail the specific Key Performance Indicators (KPIs) or contractual milestones for this 'ENGINEERING SERVICES' contract. Typically, such contracts would outline deliverables such as design reviews, prototype fabrication completion, successful lab testing results, and performance in open-air range tests. Northrop Grumman's performance would be measured against these defined milestones and technical specifications. Contract clauses would also likely include provisions for quality assurance, timely delivery, and adherence to budget. The contracting officer and technical representatives would monitor progress and formally accept deliverables.
What is the historical spending pattern for similar sensor system development contracts awarded by the Defense Microelectronics Activity?
Analyzing historical spending patterns for similar contracts by the Defense Microelectronics Activity (DMEA) requires access to comprehensive contract databases. The DMEA focuses on microelectronics, suggesting their sensor contracts might involve specialized components or integrated systems. Without specific historical data from DMEA for sensor prototypes, it's difficult to establish a trend. However, the general trend in defense R&D spending for advanced technologies like sensors has been substantial, driven by evolving threats and the need for technological superiority. The $39.9 million award is a significant sum, indicating a high-priority project within the DMEA's portfolio.
What is Northrop Grumman's track record with the Defense Microelectronics Activity and similar DoD sensor development projects?
Northrop Grumman is a major defense contractor with a long history of developing complex systems, including sensors, for the Department of Defense. Their track record with the Defense Microelectronics Activity (DMEA) specifically would need to be verified through contract databases, but it is highly probable they have engaged with DMEA given their broad capabilities in microelectronics and defense systems. Their general experience in developing advanced sensor prototypes, electronic warfare systems, and integrated defense solutions suggests a strong capability to execute this contract successfully. Past performance evaluations and award histories would provide more granular detail on their specific successes and challenges with DMEA and similar projects.
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