DoD Awards Northrop Grumman $22.7M for B-2 Microelectronic Solutions to Combat Obsolescence
Contract Overview
Contract Amount: $22,731,838 ($22.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-21
End Date: 2027-09-30
Contract Duration: 1,470 days
Daily Burn Rate: $15.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DATA IAW TASK ORDERS: ANALYZE, DESIGN, DEVELOP, AND TEST ADVANCED TECHNOLOGY MICROELECTRONIC SOLUTIONS TO RESOLVE OBSOLESCENCE ISSUES IN THE B-2 OXYGEN GENERATING AND DISTRIBUTION SYSTEM
Place of Performance
Location: EDMOND, OKLAHOMA County, OKLAHOMA, 73013
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $22.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DATA IAW TASK ORDERS: ANALYZE, DESIGN, DEVELOP, AND TEST ADVANCED TECHNOLOGY MICROELECTRONIC SOLUTIONS TO RESOLVE OBSOLESCENCE ISSUES IN THE B-2 OXYGEN GENERATING AND DISTRIBUTION SYSTEM Key points: 1. Focuses on critical B-2 bomber system obsolescence, a high-priority defense need. 2. Sole awardee Northrop Grumman has deep expertise in microelectronics and the B-2 platform. 3. Potential risk of limited competition due to specialized nature of the technology. 4. Spending falls within the Defense Microelectronics Activity's mission for advanced technology solutions.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which allows for flexibility in R&D but can lead to higher costs if not managed tightly. The total award value of $22.7M for a 4.9-year period suggests a reasonable allocation for advanced microelectronic development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although the award is a delivery order under a larger contract, the initial award was made under full and open competition. This suggests a competitive process was used to establish the foundational contract, though the specific task order award mechanism needs further review for potential limitations.
Taxpayer Impact: Taxpayer funds are being used to ensure the continued operational readiness of a critical strategic asset, the B-2 bomber, by addressing technological obsolescence.
Public Impact
Ensures the continued operational capability of the B-2 bomber fleet. Addresses critical component obsolescence, a common challenge in aging military platforms. Supports the development of advanced microelectronic solutions with potential dual-use applications. Invests in maintaining the technological edge of U.S. defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Cost Plus Fixed Fee contract type.
- Reliance on a single contractor for critical component development.
- Long-term sustainment costs for the developed microelectronic solutions are not detailed.
Positive Signals
- Addresses a critical defense need for system modernization.
- Leverages existing contractor expertise on the B-2 platform.
- Aims to resolve significant obsolescence issues.
Sector Analysis
This contract falls within the Engineering Services sector, specifically focusing on advanced microelectronics for defense applications. Spending benchmarks for similar specialized engineering services can vary widely based on complexity and technology readiness levels.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific task order, which is common for highly specialized defense technology development.
Oversight & Accountability
The Defense Microelectronics Activity (DMEA) is responsible for this contract, indicating a focused oversight mechanism for advanced microelectronic solutions. The Cost Plus Fixed Fee structure will require diligent monitoring of costs and performance to ensure value for money.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Microelectronics Activity Programs
Risk Flags
- Cost Overruns
- Technical Obsolescence
- Limited Competition
- Integration Challenges
- Long-Term Sustainment
Tags
engineering-services, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. DATA IAW TASK ORDERS: ANALYZE, DESIGN, DEVELOP, AND TEST ADVANCED TECHNOLOGY MICROELECTRONIC SOLUTIONS TO RESOLVE OBSOLESCENCE ISSUES IN THE B-2 OXYGEN GENERATING AND DISTRIBUTION SYSTEM
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 $22.7 million.
What is the period of performance?
Start: 2023-09-21. End: 2027-09-30.
What is the projected cost savings or operational benefit from resolving the B-2 oxygen system obsolescence?
The specific cost savings or operational benefits are not detailed in the provided data. However, resolving obsolescence in critical systems like the oxygen generating and distribution system is essential for maintaining aircraft readiness and safety, thereby preventing potentially higher costs associated with system failures or extended downtime.
What are the key technical risks associated with developing advanced microelectronic solutions for aging systems?
Key technical risks include the difficulty of integrating new microelectronics with legacy systems, potential compatibility issues, the challenge of sourcing rare materials or components for older systems, and the risk that the developed solutions may not fully meet the performance or reliability requirements of the aging B-2 platform.
How will the effectiveness of the developed microelectronic solutions be measured and validated?
Effectiveness will likely be measured through rigorous testing and validation processes outlined in the contract's Statement of Work. This would typically involve component-level testing, system integration testing, and flight testing to ensure the new microelectronic solutions meet or exceed the performance, reliability, and safety standards of the original components.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HQ072715R0001
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1580A W NURSERY RD, LINTHICUM HEIGHTS, MD, 21090
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: $22,731,838
Exercised Options: $22,731,838
Current Obligation: $22,731,838
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $17,615,027
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ072716D0004
IDV Type: IDC
Timeline
Start Date: 2023-09-21
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2025-04-28
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