DoD's $28.7M Janus Project contract awarded to Northrop Grumman for R&D faces limited competition concerns
Contract Overview
Contract Amount: $28,688,471 ($28.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-12-18
End Date: 2026-12-18
Contract Duration: 1,096 days
Daily Burn Rate: $26.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: JANUS PROJECT
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419
Plain-Language Summary
Department of Defense obligated $28.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: JANUS PROJECT Key points: 1. The contract value is $28.7 million, primarily for research and development. 2. Northrop Grumman Systems Corporation is the sole awardee, raising competition questions. 3. The 'Cost Plus Fixed Fee' pricing structure could pose cost escalation risks. 4. The R&D sector, specifically physical, engineering, and life sciences, is the focus.
Value Assessment
Rating: questionable
The 'Cost Plus Fixed Fee' (CPFF) contract type can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking CPFF contracts in R&D is challenging due to inherent uncertainties, but the lack of competition may prevent optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited competition approach. This limits price discovery and potentially leads to higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition for this $28.7 million contract may result in taxpayers paying more than necessary.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The project's success relies heavily on Northrop Grumman's capabilities without market validation. Future R&D projects might follow similar non-competitive award patterns if not addressed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-plus contract type
- Lack of small business participation
Positive Signals
- Awarded to a known defense contractor
- Clear research and development objective
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for technological advancement but requires careful oversight to ensure value for money, especially when competition is limited.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the prime contractor is a large corporation. This suggests limited opportunities for small businesses to participate in this specific contract.
Oversight & Accountability
The 'Cost Plus Fixed Fee' structure necessitates robust oversight from the Department of the Navy to ensure costs are reasonable and the fixed fee is justified. The lack of competition also demands increased scrutiny to ensure performance objectives are met efficiently.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost-plus contract type carries inherent cost overrun risk.
- No indication of small business participation.
- Potential for reduced innovation due to non-competitive award.
Tags
research-and-development-in-the-physical, department-of-defense, sc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. JANUS PROJECT
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $28.7 million.
What is the period of performance?
Start: 2023-12-18. End: 2026-12-18.
What specific factors justified the 'not competed' determination for this significant R&D contract?
The justification for not competing this contract is not provided in the data. Typically, such determinations are made when only one source possesses the unique capability, technology, or proprietary information required for the project, or in cases of urgent need where competition is impractical. Further investigation into the contracting officer's justification is needed.
How will the Department of the Navy ensure cost control and value for money under a Cost Plus Fixed Fee contract without competition?
The Department of the Navy must implement stringent oversight mechanisms, including detailed cost audits, performance monitoring, and regular reviews of the contractor's progress and expenditures. Establishing clear performance metrics and milestones, along with robust negotiation strategies for the fixed fee, are crucial to maximizing value and controlling costs in a non-competitive CPFF scenario.
What is the potential long-term impact on innovation and market competition if R&D contracts of this nature are consistently awarded without competition?
Consistently awarding R&D contracts without competition could stifle innovation by reducing the incentive for contractors to develop cost-saving efficiencies or novel approaches. It may also create barriers to entry for smaller, innovative firms, leading to market consolidation and potentially higher prices for government research and development services over time.
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: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 17455 E EXPOSITION DR, AURORA, CO, 80017
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $71,451,196
Exercised Options: $71,451,196
Current Obligation: $28,688,471
Actual Outlays: $2,692,797
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $855,127
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-12-18
Current End Date: 2026-12-18
Potential End Date: 2026-12-18 00:00:00
Last Modified: 2025-12-19
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