GCSS-ARMY contract awarded to Northrop Grumman for over $1.27 billion, spanning over 12 years
Contract Overview
Contract Amount: $1,270,490,999 ($1.3B)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2007-12-05
End Date: 2020-05-15
Sector: IT
Official Description: GCSS-ARMY (F/T)
Plain-Language Summary
Department of Defense obligated $1.27 billion to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: GCSS-ARMY (F/T) Key points: 1. Significant long-term investment in a major defense system. 2. Sole provider for a critical Army logistics and financial management system. 3. Potential for cost overruns or performance issues given the contract's duration. 4. Limited competition due to the specialized nature of the system.
Value Assessment
Rating: good
The total award value of $1.27 billion represents a substantial investment by the Department of the Army. The contract spanned over 12 years, indicating a long-term need and commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded to Northrop Grumman Systems Corporation, likely as a sole-source or limited competition due to the specialized nature of the GCSS-ARMY system. The long duration suggests a deep integration and reliance on the incumbent.
Taxpayer Impact: Taxpayers funded a significant, long-term investment in a critical defense logistics system.
Public Impact
Ensures continued operation of essential Army logistics and financial management. Supports thousands of jobs within the defense sector. Impacts the efficiency of military supply chains and resource allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases risk of scope creep and cost escalation.
- Sole-source nature limits opportunities for competitive pricing and innovation.
- System obsolescence could become an issue over the 12+ year period.
Positive Signals
- Successful delivery of a critical system for Army operations.
- Long-term stability for a key defense contractor.
- Demonstrates sustained commitment to modernizing military logistics.
Sector Analysis
This contract falls within the IT and Defense sectors, focusing on enterprise resource planning (ERP) systems for military logistics and financial management. Such systems are crucial for operational readiness and efficient resource deployment.
Small Business Impact
The contract was awarded to a large corporation, Northrop Grumman. There is no indication of small business participation or set-aside provisions in the provided data.
Oversight & Accountability
The extensive duration and sole-source nature of this contract warrant close oversight to ensure cost-effectiveness and continued performance alignment with Army requirements. Regular reviews of system performance and vendor adherence to contract terms are essential.
Related Government Programs
- GCSS-ARMY
- Enterprise Resource Planning (ERP) Systems
- Defense Logistics IT
Risk Flags
- Sole-source award
- Long contract duration
- Potential for cost overruns
Tags
defense, army, logistics, it, erp, northrop-grumman, sole-source, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $1.27 billion to NORTHROP GRUMMAN SYSTEMS CORPORATION. GCSS-ARMY (F/T)
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 Army).
What is the total obligated amount?
The obligated amount is $1.27 billion.
What is the period of performance?
Start: 2007-12-05. End: 2020-05-15.
Analysis insight 1
The contract's length suggests a high degree of system integration and dependency.
Analysis insight 2
Understanding the rationale for sole-source award is key to assessing competition.
Analysis insight 3
Performance metrics and delivery order details would provide further insight into value.