DoD's $323M contract for phased array IDT antenna technology awarded to Northrop Grumman
Contract Overview
Contract Amount: $323,347,475 ($323.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-07-29
End Date: 2027-09-30
Contract Duration: 1,889 days
Daily Burn Rate: $171.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: GWS DEVELOPMENT (PHASED ARRAY IDT ANTENN
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $323.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: GWS DEVELOPMENT (PHASED ARRAY IDT ANTENN Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Research and Development focus in a critical defense technology area. 3. Long performance period (2022-2027) indicates a complex, multi-year effort. 4. Cost Plus Incentive Fee (CPIF) contract type allows for performance-based adjustments. 5. No small business set-aside, potentially limiting opportunities for smaller firms. 6. High dollar value suggests significant investment in advanced capabilities.
Value Assessment
Rating: good
The contract's value of $323 million over approximately five years for advanced antenna technology appears reasonable given the R&D nature and the contractor's specialization. Benchmarking against similar complex defense R&D contracts is challenging without more specific technical details, but the CPIF structure incentivizes cost control and performance. The long duration suggests a significant technological undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple capable contractors had the opportunity to bid. The specific number of bidders is not provided, but this method generally fosters competitive pricing and encourages innovation by allowing the government to select the best technical and cost solution from a wide pool of potential offerors.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs and improve the quality of the delivered technology through market forces.
Public Impact
The Department of Defense benefits from advancements in phased array antenna technology, crucial for modern defense systems. This contract supports the development of critical components for missile defense systems. The geographic impact is primarily in Alabama, where the contractor is located. The contract likely supports a specialized workforce in advanced engineering and research.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in R&D contracts, even with CPIF.
- Long contract duration could lead to scope creep or evolving technological requirements.
- Reliance on a single large contractor for a critical technology component.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- CPIF contract type incentivizes contractor performance and cost efficiency.
- Northrop Grumman is a major defense contractor with extensive experience in this field.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on advanced electronics and radar technology. The market for phased array antennas is highly specialized, dominated by a few large defense contractors. Spending in this area is driven by the need for next-generation defense capabilities, including missile defense, electronic warfare, and advanced surveillance systems. Comparable spending benchmarks would likely be found within other large-scale R&D programs for critical defense hardware.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing the most capable large prime contractor for this advanced technology. The absence of set-asides may limit direct opportunities for small businesses to participate in this specific contract, though they might be involved as subcontractors to the prime.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Defense, specifically the Missile Defense Agency, through contract administration and technical monitoring. The CPIF structure includes performance metrics that will be tracked. Transparency is generally maintained through contract award databases, but detailed technical progress and financial oversight are typically internal to the agency and contractor.
Related Government Programs
- Missile Defense Systems
- Advanced Radar Technology
- Aerospace and Defense Research & Development
- Phased Array Antenna Development
Risk Flags
- Long-term R&D contract duration
- Potential for cost overruns in complex development
- Technological obsolescence risk
- Reliance on a single prime contractor
Tags
defense, department-of-defense, missile-defense-agency, northrop-grumman, research-and-development, antenna-technology, phased-array-radar, cost-plus-incentive-fee, full-and-open-competition, large-contract, alabama, advanced-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $323.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. GWS DEVELOPMENT (PHASED ARRAY IDT ANTENN
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 $323.3 million.
What is the period of performance?
Start: 2022-07-29. End: 2027-09-30.
What is the specific technological advancement expected from this phased array IDT antenna?
The contract focuses on 'PHASED ARRAY IDT ANTENN', which likely refers to Integrated Device Technology for phased array antennas. Phased array antennas are crucial for modern defense systems as they can electronically steer beams without physical movement, offering rapid targeting and multi-functionality. Integrated Device Technology implies advancements in the miniaturization, efficiency, and performance of the electronic components that form the antenna's core. This could lead to smaller, more powerful, and more versatile radar and communication systems for platforms like missile defense interceptors, fighter jets, or satellites, enhancing capabilities such as target acquisition, tracking, and electronic warfare.
How does the Cost Plus Incentive Fee (CPIF) structure work for this contract?
A Cost Plus Incentive Fee (CPIF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for allowable costs and also receives a fee that is adjusted based on performance against pre-determined targets. For this $323 million contract, Northrop Grumman will be reimbursed for its incurred costs. The 'incentive' part means that if the contractor meets or exceeds specific performance goals (e.g., technical performance, delivery schedule, or cost savings beyond a certain threshold), they will receive a higher fee. Conversely, if they underperform against these targets, their fee will be reduced. This structure aims to motivate the contractor to achieve specific objectives while managing costs effectively, balancing the government's need for advanced technology with financial accountability.
What is Northrop Grumman's track record with similar defense R&D contracts?
Northrop Grumman is a major defense contractor with a long history of developing and producing advanced systems for the U.S. military, including radar, electronic warfare, and space systems. They have significant experience with complex research and development programs, often involving large dollar values and long performance periods. Their portfolio includes numerous contracts for advanced antenna technologies and integrated systems for various defense applications. While specific details of past CPIF contracts are proprietary, their consistent selection for large-scale, technologically sophisticated projects indicates a strong track record in delivering complex defense solutions and managing R&D efforts.
What are the potential risks associated with a five-year R&D contract of this magnitude?
Several risks are associated with a five-year R&D contract of this magnitude. Firstly, technological obsolescence is a significant concern; the technology developed over five years might be outdated by the time it's fully realized or deployed, especially in rapidly evolving fields like antenna technology. Secondly, cost overruns are always a risk in R&D, even with CPIF, as unforeseen technical challenges can arise, increasing development costs. Thirdly, the long duration increases the likelihood of scope creep, where requirements may change or expand, leading to delays and increased costs. Finally, the reliance on a single contractor for a critical component like an advanced antenna system could pose a supply chain risk if the contractor faces production issues or financial instability.
How does this spending compare to other R&D investments in advanced defense technologies?
A $323 million contract for advanced antenna technology represents a substantial investment, but it is within the typical range for major defense R&D programs. The Department of Defense consistently invests billions annually in research, development, testing, and evaluation (RDT&E) across various domains, including aerospace, cyber, and advanced materials. Contracts for next-generation radar, communication systems, and electronic warfare capabilities often run into hundreds of millions of dollars due to the complexity, specialized expertise, and long development cycles required. This specific contract for phased array IDT antennas aligns with strategic priorities to modernize military capabilities and maintain technological superiority.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ085622R0002
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 301 VOYAGER WAY NW, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $369,596,740
Exercised Options: $369,596,740
Current Obligation: $323,347,475
Actual Outlays: $106,687,068
Subaward Activity
Number of Subawards: 97
Total Subaward Amount: $795,713,254
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: HQ085622D0001
IDV Type: IDC
Timeline
Start Date: 2022-07-29
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-01-14
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)