Northrop Grumman awarded $36.1M contract for IT support services by Social Security Administration

Contract Overview

Contract Amount: $36,165,750 ($36.2M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Social Security Administration

Start Date: 2012-09-29

End Date: 2013-09-28

Contract Duration: 364 days

Daily Burn Rate: $99.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF 3.00-001 - CONTRACT MANAGEMENT TASK 3.01-920 - ORDP PLDDR SUPPORT 3.01-805 - DDHIS REQUIREMENTS SUPPORT 3.05-240 - OESAE DEADA DA, PROGRAMMATIC REPOSITORY,&EA 3.08-910 - CARE 2020 SUPPORT 3.01-910 - ESERVICES CUSTOMER SUPPORT 3.05-950 - OQP AIPQB REPORTING 3.08-115 - DCSI KWIA WINDOWS SERVER AND VIRTUALIZATION 3.08-114 - DCSI/ADMB KWIA VIRTUAL DESKTOP INFRASTRUCTURE SUPPORT 3.08-108 - DIET TESTING FRAMEWORK FOR PERFORMANCE TESTING 3.01-103 - DITM/FTSB CONTRACTOR SUPPORT 3.01-107 - DRMA - ITAM SUPPORT 3.08-113 - OTSO ONE STOP 3.01-310 - ORSIS: TECHNICAL SUPPORT FOR TITLE II SYSTEMS 3.01-610 - USABILITY, ACCESSIBILITY, AND PROJECT SUPPORT 3.01-320 - ITSSC TECHNICAL SUPPORT FOR ITOPSS AND TITLE II SYSTEMS 3.01-290 - DESCA SERVICES&COMMUNICATIONS, PLANNING AND ANALYSIS SUPPORT 3.01-501 - OESAE: DAWRB 3.01-804 - DDAC REQUIREMENTS SUPPORT 3.01-260 - OESAE: DVTT 3.01-401 - DAD INFORMATION TECHNOLOGY SUPPORT APPLICATION AND BUSINESS PLANNING, ANALYSIS, AND REQUIREMENTS 3.01-508 - SUPPORT FOR INTEGRITY, AUDIT, AND CONTROL SYSTEMS 3.01-221 - DEDMS APPLICATION, PLANNING, ANALYSIS, AND REQUIREMENTS SUPPORT 3.01-504 - SUPPORT FOR ENUMERATION 3.01-270 - DPEPCS PLANNING, ANALYSIS AND REQUIREMENTS SUPPORT FOR SPARS, PRISM, AND CARS 3.01-507 - DIVES APPLICATION AND BUSINESS PLANNING, ANALYSIS, AND REQUIREMENTS 3.01-502 - TECHNICAL SUPPORT FOR DBSTS PLANNING, ANALYSIS AND REQUIREMENTS 3.01-803 - REQUIREMENTS SUPPORT FOR ELECTRONIC DISABILITY PROCESSING SYSTEMS 3.01-406 - OASSIS APPLICATION AND BUSINESS PLANNING, ANALYSIS, AND REQUIREMENTS 3.01-002 - PMAS SUPPORT 3.01-251 - DISA PLANNING, ANALYSIS AND REQUIREMENT SUPPORT (PARS) 3.01-240 - DEADA PLANNING, ANALYSIS AND REQUIREMENTS SUPPORT 3.01-503 - TECHNICAL SUPPORT FOR DECU - PLANNING, ANALYSIS AND REQUIREMENTS 3.01-802 - DDAP REQUIREMENTS SUPPORT OTHER FUNCTION

Place of Performance

Location: BALTIMORE, BALTIMORE (CITY) County, MARYLAND, 21235, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $36.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF 3.00-001 - CONTRACT MANAGEMENT TASK 3.01-920 - ORDP PLDDR SUPPORT 3.01-805 - DDHIS REQUIREMENTS SUPPORT 3.05-240 - OESAE DEADA DA, PROGRAMMATIC REPOSITORY,&EA 3.08-910 - CARE 2020 SUPPORT 3.01-910 - ESERVICES CUSTOMER SUPPORT 3.05-950 - OQP AIPQB REPORTING 3.08-115 -… Key points: 1. The contract is for various IT support services, including programmatic repository, EA, and customer support. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract type is Time and Materials, which can pose risks if not managed closely. 4. The primary sector is IT services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: fair

The contract value of $36.1M for a 1-year duration appears to be within a reasonable range for comprehensive IT support services. However, without specific benchmarks for the exact services rendered, a precise per-unit cost comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently, as the government likely secured services at a market-driven price.

Public Impact

Citizens rely on the Social Security Administration for critical services, making the reliability of its IT infrastructure paramount. This contract ensures the continued operation and support of essential systems that process and manage sensitive citizen data. Effective IT support is crucial for maintaining public trust and ensuring the efficient delivery of social security benefits and programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Time and Materials contract type can lead to cost overruns if not closely monitored.
  • The broad scope of services may present challenges in defining and measuring performance metrics.
  • Reliance on a single contractor for diverse IT support functions could create vendor lock-in.

Positive Signals

  • Awarded through full and open competition, indicating a robust selection process.
  • The contract aims to support critical IT infrastructure for a vital government agency.
  • The duration of the contract allows for sustained support of ongoing IT operations.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government agencies, supporting everything from software development to infrastructure management. Benchmarks for similar contracts vary widely based on scope and complexity.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). This suggests that the scope and requirements of the contract were likely beyond the capabilities or capacity of most small businesses in this sector.

Oversight & Accountability

Oversight of Time and Materials contracts is critical to ensure that costs remain within budget and that services are delivered as specified. The Social Security Administration's contracting office is responsible for monitoring performance and expenditures.

Related Government Programs

  • Other Computer Related Services
  • Social Security Administration Contracting
  • Social Security Administration Programs

Risk Flags

  • Time and Materials contract type.
  • Broad scope of services.
  • Potential for vendor lock-in.
  • Lack of specific performance benchmarks in provided data.

Tags

other-computer-related-services, social-security-administration, md, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $36.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF 3.00-001 - CONTRACT MANAGEMENT TASK 3.01-920 - ORDP PLDDR SUPPORT 3.01-805 - DDHIS REQUIREMENTS SUPPORT 3.05-240 - OESAE DEADA DA, PROGRAMMATIC REPOSITORY,&EA 3.08-910 - CARE 2020 SUPPORT 3.01-910 - ESERVICES CUSTOMER SUPPORT 3.05-950 - OQP AIPQB REPORTING 3.08-115 - DCSI KWIA WINDOWS SERVER AND VIRTUALIZATION 3.08-114 - DCSI/ADMB KWIA VIRTUAL DESKTOP INFRASTRUCTURE SUPPORT 3.08-108 - DIET TESTING FRAMEWORK FOR PERFORMANCE TESTING 3.01-103 - DITM/FTSB CONTRACTOR SUPPORT 3.01-107 - D

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $36.2 million.

What is the period of performance?

Start: 2012-09-29. End: 2013-09-28.

What specific metrics are in place to ensure the value for money in this Time and Materials contract, given its significant value?

Effective oversight of Time and Materials contracts relies on robust performance metrics and diligent monitoring of labor hours and material costs. The Social Security Administration should have established clear deliverables, service level agreements, and regular reporting requirements to track progress and control spending. Regular audits and reviews of invoices are also crucial to validate charges and ensure alignment with contract terms and fair market value.

What are the potential risks associated with consolidating multiple IT support functions under a single contractor, and how are they mitigated?

Consolidating diverse IT support functions under one contractor can lead to vendor lock-in, reduced flexibility, and potential knowledge gaps if the contractor's personnel turnover is high. Mitigation strategies include clearly defined contract scope, performance-based incentives, regular performance reviews, and maintaining in-house expertise to oversee the contractor. The government should also ensure strong contract management to prevent over-reliance and to facilitate potential future competition.

How does the 'Other Computer Related Services' classification impact the assessment of this contract's effectiveness and potential for innovation?

The broad 'Other Computer Related Services' classification can make it challenging to precisely benchmark effectiveness or foster specific innovations, as it encompasses a wide array of activities. While it offers flexibility, it necessitates detailed performance metrics within the contract to ensure specific IT functions are performed effectively. Innovation may be driven by the contractor's initiative, but the classification itself doesn't inherently promote or hinder it; effective contract management and clear objectives are key.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

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

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: $36,165,750

Exercised Options: $36,165,750

Current Obligation: $36,165,750

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $20,012,067

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SS001060082

IDV Type: IDC

Timeline

Start Date: 2012-09-29

Current End Date: 2013-09-28

Potential End Date: 2013-09-28 00:00:00

Last Modified: 2015-07-11

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