DoD awards $37.9M contract to Northrop Grumman for missile and space systems R&D, spanning over 1,600 days

Contract Overview

Contract Amount: $37,930,102 ($37.9M)

Contractor: Northrop Grumman Information Technology Inc

Awarding Agency: Department of Defense

Start Date: 2005-06-08

End Date: 2010-01-31

Contract Duration: 1,698 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200512!502808!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M05C0003 !A!N! !N! !P00003!20050608!20070131!064677243!016435559!016435559!N!NORTHROP GRUMMAN INFORMATION T!7575 COLSHIRE DRIVE !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000000400000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !3! ! !C! ! !20200930!B! ! !A! !A!N!R!2!003!B! !C!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $37.9 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: 200512!502808!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M05C0003 !A!N! !N! !P00003!20050608!20070131!064677243!016435559!016435559!N!NORTHROP GRUMMAN INFORMATION T!7575 COLSHIRE DRIVE !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIR… Key points: 1. Contract value of $37.9 million for advanced technology development in missile and space systems. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration of nearly five years indicates a long-term project requirement. 4. Northrop Grumman's extensive experience in defense contracting is a key factor. 5. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 6. Awarded by the Department of Defense, highlighting strategic national security interests.

Value Assessment

Rating: good

The contract value of $37.9 million for a nearly five-year duration appears reasonable for advanced R&D in missile and space systems. Benchmarking against similar complex defense R&D contracts is challenging due to unique technological requirements. However, the Cost Plus Award Fee (CPA F) structure incentivizes performance and cost control, suggesting an effort to achieve value for money. The absence of specific performance metrics makes a definitive value assessment difficult without further context on deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bidders suggests a moderate level of competition for this specialized R&D requirement. While not a highly contested bid, the open competition likely contributed to price discovery and ensured a selection based on technical merit and proposed cost.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, even with a limited number of bidders.

Public Impact

The primary beneficiaries are the Department of Defense and its strategic space and missile defense capabilities. Services delivered include advanced research and development for missile and space systems. The geographic impact is primarily within the United States, supporting national defense infrastructure. Workforce implications include highly skilled engineers and scientists in specialized R&D fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if not managed rigorously.
Long contract duration could lead to scope creep or evolving technological requirements.
Dependence on a single large contractor for critical R&D may limit future market options.

Positive Signals

Northrop Grumman's established track record in complex defense systems development.
The contract's focus on advanced technology development aligns with future defense needs.
Full and open competition, even with few bidders, provides a baseline for accountability.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on Research and Development for Missile and Space Systems. The market for such advanced technologies is highly specialized, dominated by a few large defense contractors. Spending in this area is critical for maintaining technological superiority and national security. Comparable spending benchmarks are difficult to establish due to the unique nature of R&D, but significant government investment is typical for next-generation defense capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'N' for small business status. Northrop Grumman, a large prime contractor, is likely to subcontract portions of the work. The extent to which small businesses will participate as subcontractors is not detailed in the provided data, but large defense contracts often include provisions for small business subcontracting goals.

Oversight & Accountability

Oversight is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for contract administration. The Cost Plus Award Fee structure implies performance monitoring and evaluation to determine award fees. Transparency is generally maintained through contract reporting mechanisms, though specific details of R&D progress may be sensitive. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

Missile Defense Agency (MDA) Programs
Advanced Technology Development Contracts
Space Systems Research and Development
Department of Defense Research and Development

Risk Flags

Long contract duration may increase risk of scope creep or obsolescence.
Cost Plus Award Fee structure requires diligent oversight to ensure cost control.
R&D inherently carries technological uncertainty and potential for non-delivery of desired outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.9 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. 200512!502808!2100!W9113M!USA SPACE AND STRATEGIC DEF CDR !W9113M05C0003 !A!N! !N! !P00003!20050608!20070131!064677243!016435559!016435559!N!NORTHROP GRUMMAN INFORMATION T!7575 COLSHIRE DRIVE !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000000400000!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !CAA !MDA SUPPORT !541710!E! !3! ! !C! ! !202

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $37.9 million.

What is the period of performance?

Start: 2005-06-08. End: 2010-01-31.

What is Northrop Grumman's specific track record with similar missile and space systems R&D contracts for the DoD?

Northrop Grumman has a long and extensive history of developing complex systems for the Department of Defense, including significant work in missile defense, space systems, and advanced technologies. They have been a prime contractor on numerous programs related to strategic deterrence, satellite technology, and missile development. While specific contract details for R&D are often proprietary, their consistent selection for large-scale, technologically advanced projects indicates a strong capability and a trusted relationship with the DoD. Their portfolio includes contributions to programs like the Ground-based Midcourse Defense (GMD) system and various space-based intelligence, surveillance, and reconnaissance (ISR) platforms. This contract likely leverages their existing expertise in areas such as systems integration, advanced materials, and propulsion for missile and space applications.

How does the $37.9 million value compare to other DoD R&D contracts for missile and space systems?

The $37.9 million contract value for this missile and space systems R&D falls within a moderate range for advanced technology development within the Department of Defense. Large-scale R&D programs, especially those involving cutting-edge technologies or system-level development, can easily reach hundreds of millions or even billions of dollars over their lifecycle. However, contracts focused on specific technological advancements, feasibility studies, or component development, like this one appears to be, often fall in the tens of millions. For instance, contracts for developing new missile guidance systems, advanced sensor technologies for space applications, or early-stage research into hypersonic technologies can range from $10 million to $50 million. Therefore, this award is consistent with the typical investment for targeted R&D efforts in these critical defense areas.

What are the primary risks associated with this contract, given its R&D nature and duration?

The primary risks associated with this contract stem from its Research and Development nature and its extended duration of nearly five years. Technological risks are inherent, as the outcome of R&D is uncertain; the desired advancements may not be achieved, or they may prove more complex and costly than initially estimated. Cost risks are also significant, particularly with a Cost Plus Award Fee (CPA F) structure, where cost overruns can occur if not managed effectively, although the award fee mechanism aims to mitigate this by incentivizing efficiency. Schedule risks are present due to the potential for unforeseen technical challenges or changes in program priorities. Furthermore, there's a risk that the developed technology may become obsolete before deployment due to rapid advancements in the field or shifts in strategic requirements. Finally, contractor performance risk exists, although mitigated by Northrop Grumman's experience.

How effective is the Cost Plus Award Fee (CPA F) contract type in achieving value for money in defense R&D?

The Cost Plus Award Fee (CPA F) contract type is often employed in defense R&D because it balances the need for contractor flexibility and innovation with government oversight and cost control. It allows the contractor to incur costs deemed reasonable and allocable, plus a fee that is composed of a fixed base fee and a variable award fee. The award fee is contingent upon the contractor meeting or exceeding specific performance objectives, which are typically defined in the contract's Performance Requirements Summary (PRS). This structure incentivizes the contractor to perform well, control costs, and meet technical milestones, thereby potentially enhancing value for money compared to a simple cost-plus contract. However, the effectiveness hinges on the clarity and measurability of the performance criteria and robust government oversight to ensure fair assessment of the award fee.

What are the historical spending patterns for missile and space systems R&D within the Department of Defense?

Historical spending patterns for missile and space systems R&D within the Department of Defense have consistently represented a significant portion of the overall defense budget. Driven by evolving geopolitical threats, the need for technological superiority, and advancements in areas like missile defense, space-based assets, and counter-space capabilities, DoD R&D spending in these domains is substantial and often prioritized. Major programs like the Missile Defense Agency's initiatives, the development of next-generation satellites for intelligence, surveillance, and reconnaissance (ISR), and research into advanced propulsion and materials have historically commanded billions of dollars annually. While specific figures fluctuate based on strategic priorities and budget cycles, sustained investment in these areas is a hallmark of U.S. defense strategy, reflecting their critical importance to national security.

What is the significance of the NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences) for this contract?

The North American Industry Classification System (NAICS) code 541710 signifies that this contract is for research and development activities conducted in the physical, engineering, and life sciences. For a defense contract like this, it specifically points to R&D efforts related to advanced materials, physics, engineering disciplines (aerospace, mechanical, electrical), and potentially other scientific fields that underpin the development of missile and space systems. This classification helps categorize the contract within the broader federal procurement landscape, allowing for analysis of spending trends across different scientific and technological domains. It indicates that the work involves systematic study to gain new knowledge and understanding, ultimately leading to the development of new or improved products, processes, or services within these scientific disciplines.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 7575 COLSHIRE DRIVE, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline