DoD's $27.5M Northrop Grumman Contract Addresses B-2 Radio Obsolescence with Engineering Services

Contract Overview

Contract Amount: $27,469,878 ($27.5M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2024-08-22

End Date: 2027-08-31

Contract Duration: 1,104 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRED PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS TO RESOLVE OBSOLESCENCE ISSUES OF THE MICROELECTRONICS-BASED B-2 BAND 1 RADIO FREQUENCY FRONT END (RFFE) SYSTEM.

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRED PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS TO RESOLVE OBSOLESCENCE ISSUES OF THE MICROELECTRONICS-BASED B-2 BAND 1 RADIO FREQUENCY FRONT END (RFFE) SYSTEM. Key points: 1. Contract addresses critical obsolescence in B-2 radio frequency front-end systems. 2. Northrop Grumman Systems Corporation is the awardee. 3. The contract falls under Engineering Services (NAICS 541330). 4. Awarded via Full and Open Competition, indicating broad market engagement. 5. The contract has a duration of 1104 days.

Value Assessment

Rating: good

The contract value of $27.5M for engineering services to resolve microelectronics obsolescence appears reasonable given the specialized nature of the B-2 RFFE system and the need for advanced technological support. Benchmarking against similar complex defense system sustainment contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under Full and Open Competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value. The specific price discovery mechanisms within this competitive process are not detailed.

Taxpayer Impact: Taxpayer funds are being used to ensure the continued operational readiness of a critical defense asset, the B-2 bomber, by addressing component obsolescence through competitive procurement.

Public Impact

Ensures continued operational capability of the B-2 bomber's communication systems. Supports national defense by maintaining aging, high-value military platforms. Invests in specialized engineering services for complex defense electronics. Addresses supply chain risks associated with legacy military hardware.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in Cost Plus Fixed Fee contracts.
Long-term sustainment costs for aging platforms.
Dependence on a single contractor for critical component solutions.

Positive Signals

Addresses critical obsolescence proactively.
Utilizes competitive procurement for best value.
Supports a key strategic defense asset.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on engineering services for advanced microelectronics. Spending in this area is crucial for maintaining the technological edge of military platforms and addressing the challenges of obsolescence in complex systems like the B-2 bomber.

Small Business Impact

The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication that small businesses were specifically targeted or subcontracted for this particular award, which is common for large, specialized defense contracts.

Oversight & Accountability

The Department of Defense's Defense Microelectronics Activity oversees this contract. The Cost Plus Fixed Fee (CPFF) contract type requires careful monitoring to ensure costs remain within acceptable parameters and that the fixed fee is justified by the scope of work.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Microelectronics Activity Programs

Risk Flags

Critical component obsolescence.
Reliance on specialized engineering services.
Potential for cost overruns in CPFF contracts.
Aging defense platform sustainment.
National security implications of system readiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THE ADVANCED TECHNOLOGY SUPPORT PROGRAM (ATSP) CONTRACT ACQUIRED PROGRESSIVE MICROELECTRONIC CAPABILITY SOLUTIONS TO RESOLVE OBSOLESCENCE ISSUES OF THE MICROELECTRONICS-BASED B-2 BAND 1 RADIO FREQUENCY FRONT END (RFFE) 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 $27.5 million.

What is the period of performance?

Start: 2024-08-22. End: 2027-08-31.

What is the specific technical risk associated with the B-2 RFFE system's obsolescence, and how does this contract mitigate it?

The B-2 RFFE system relies on microelectronic components that are no longer manufactured or supported, posing a significant risk of system failure and reduced operational effectiveness. This contract aims to mitigate this by acquiring advanced microelectronic capability solutions, likely involving reverse engineering, redesign, or sourcing alternative components to ensure continued functionality and reliability of the radio system.

How does the Cost Plus Fixed Fee (CPFF) structure balance cost control with the need for specialized engineering expertise?

The CPFF structure provides the contractor with cost reimbursement plus a fixed fee, incentivizing efficiency while ensuring they are compensated for the specialized engineering effort required. However, it necessitates robust government oversight to scrutinize costs and prevent scope creep, ensuring the fixed fee remains appropriate for the defined work and doesn't lead to excessive overall expenditure.

What is the long-term strategy for managing microelectronics obsolescence in critical defense systems beyond the B-2 program?

The long-term strategy likely involves a multi-faceted approach including enhanced supply chain visibility, proactive obsolescence management programs, investment in domestic microelectronics manufacturing capabilities, and fostering closer collaboration between defense agencies and industry. This contract for the B-2 program serves as a specific instance of addressing obsolescence, highlighting the ongoing need for such initiatives across the broader defense inventory.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

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: $27,469,878

Exercised Options: $27,469,878

Current Obligation: $27,469,878

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $17,895,045

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