SSA Awards $50.4M IT Support Contract to Northrop Grumman Under Full and Open Competition
Contract Overview
Contract Amount: $50,417,850 ($50.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Social Security Administration
Start Date: 2013-09-29
End Date: 2014-12-31
Contract Duration: 458 days
Daily Burn Rate: $110.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::OT::IGF OTHER FUNCTIONS INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT (ITSSC), CONTRACT NUMBER SS00-10-60082, NG, FOR CONTRACTOR SUPPORT. THIS WILL FUND TECHNICAL AREAS 1, 5, AND 8 T&M TASK ORDERS AND TASK 4.00-001 CONTRACT MANAGEMENT TASK.
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 $50.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF OTHER FUNCTIONS INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT (ITSSC), CONTRACT NUMBER SS00-10-60082, NG, FOR CONTRACTOR SUPPORT. THIS WILL FUND TECHNICAL AREAS 1, 5, AND 8 T&M TASK ORDERS AND TASK 4.00-001 CONTRACT MANAGEMENT TASK. Key points: 1. Contract awarded to Northrop Grumman for IT support services. 2. The contract value is $50.4 million. 3. Competition method was full and open, suggesting potential for competitive pricing. 4. The sector is Information Technology, specifically 'Other Computer Related Services'.
Value Assessment
Rating: fair
The contract is a Time and Materials (T&M) type, which can lead to cost overruns if not managed closely. Benchmarking T&M contracts is difficult without specific labor categories and rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally allows for a broad range of bidders and can lead to better price discovery. However, the T&M pricing structure requires careful oversight to ensure value.
Taxpayer Impact: Taxpayer funds are being used for essential IT support services. The competitive award aims to ensure reasonable pricing, but T&M terms necessitate vigilance against potential cost creep.
Public Impact
Ensures continued IT support for critical Social Security Administration systems. Supports technical areas and contract management functions. Potential for job creation within Northrop Grumman's IT services division.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can inflate costs without strict controls.
- Contract duration is relatively short (458 days), potentially leading to follow-on contract costs.
- Small business participation is not indicated (ss: false).
Positive Signals
- Awarded under full and open competition, maximizing potential bidder pool.
- Addresses critical IT support needs for a major federal agency.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Federal IT spending is substantial, and contracts like this are crucial for maintaining agency operations. Benchmarks for similar IT support services vary widely based on scope and complexity.
Small Business Impact
The data indicates no specific set-aside for small businesses (ss: false, sb: false). This suggests that small businesses were not prioritized or did not participate in this specific procurement, which could be a missed opportunity for economic development.
Oversight & Accountability
The contract is managed by the Social Security Administration (SSA). Oversight would focus on monitoring task orders, labor hours, and material costs to ensure adherence to the T&M contract terms and prevent cost overruns.
Related Government Programs
- Other Computer Related Services
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Time and Materials (T&M) contract type.
- Lack of small business participation.
- Potential for cost overruns due to T&M structure.
- Short contract duration may lead to future contracting costs.
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 $50.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF OTHER FUNCTIONS INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT (ITSSC), CONTRACT NUMBER SS00-10-60082, NG, FOR CONTRACTOR SUPPORT. THIS WILL FUND TECHNICAL AREAS 1, 5, AND 8 T&M TASK ORDERS AND TASK 4.00-001 CONTRACT MANAGEMENT TASK.
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 $50.4 million.
What is the period of performance?
Start: 2013-09-29. End: 2014-12-31.
What specific IT services are covered under Technical Areas 1, 5, and 8, and how do these align with SSA's core mission needs?
Technical Areas 1, 5, and 8 likely encompass a range of IT support functions such as network administration, system maintenance, cybersecurity, and potentially specialized software development or support. Understanding the precise nature of these services is crucial to assess their direct contribution to the SSA's mission of administering social security programs and ensuring the integrity of its data and systems.
Given the T&M structure, what mechanisms are in place to control costs and prevent scope creep for this $50.4M contract?
Effective cost control for T&M contracts relies on robust oversight, including detailed tracking of labor hours, defined ceiling rates, and strict approval processes for any deviations or additional work. The SSA would need to implement rigorous monitoring of contractor performance and expenditures, potentially utilizing independent government cost estimates and regular audits to ensure the contractor is delivering value within the allocated budget.
How does the 'Other Computer Related Services' NAICS code (541519) reflect the actual work performed, and could a more specific code have yielded better competition?
The broad NAICS code 541519 covers a wide array of IT services beyond specialized areas like software development or data processing. While it allows for broad competition, it might not precisely capture the unique technical requirements of the ITSSC. A more specific code could potentially attract bidders with highly specialized expertise, but might also limit the pool of potential offerors. Assessing the specific tasks is key to determining if the chosen code was optimal.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP 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: $50,417,850
Exercised Options: $50,417,850
Current Obligation: $50,417,850
Subaward Activity
Number of Subawards: 44
Total Subaward Amount: $54,593,676
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SS001060082
IDV Type: IDC
Timeline
Start Date: 2013-09-29
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2015-07-11
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 Social Security Administration Contracts
- Itssc Task Order for Systems — $1.1B (Leidos, Inc.)
- Contractor IS to Provide the Expertise, Technical Knowledge, IT Support Personnel, and Other Related Resources Necessary for Systems Analysis and Testing — $734.1M (Northrop Grumman Systems Corporation)
- Contractor to Provide Development&database Support to Agency's Office of Software Engineering — $593.5M (Leidos, Inc.)
- THE Government Intends to Establish a Single-Award Delivery Order Base Plus Four 1year Option Periods for the Renewal of IBM Software Maintenance and the Purchase of More Additional IBM Software Licenses Against the General Services Administrations Federal Supply Schedule Program. Previous Order SS00-15-30081 — $525.4M (International Business Machines Corporation)
- NEW 66 Month Open-Market Contract for Renewal of CA Software, Support Services, and Maintenance. CA Proprietary Software Products ARE Used Extensively Throughout OUR Mainframe and Distributed Environments AT ALL SSA Data Centers — $419.8M (CA, Inc.)