SSA awards $94.4M T&M IT support task order to Northrop Grumman under full and open competition
Contract Overview
Contract Amount: $94,428,863 ($94.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Social Security Administration
Start Date: 2015-09-29
End Date: 2016-09-28
Contract Duration: 365 days
Daily Burn Rate: $258.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::CL::IGF TIME AND MATERIALS (T&M) TASK ORDER 0026 AGAINST THE INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT (ITSSC), CONTRACT NUMBER SS00-10-60082, WITH NORTHROP GRUMMAN, FOR CONTRACTOR SUPPORT WITH TASKS RELATED TO TECHNICAL AREA 1 (APPLICATION AND BUSINESS PLANNING, ANALYSIS AND REQUIREMENTS), TECHNICAL AREA 5 (DATA ADMINISTRATION, PROGRAMMATIC REPOSITORY, AND ENTERPRISE ARCHITECTURE), AND TECHNICAL AREA 8 (SOFTWARE ENGINEERING MANAGEMENT).
Place of Performance
Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235
State: Maryland Government Spending
Plain-Language Summary
Social Security Administration obligated $94.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::CL::IGF TIME AND MATERIALS (T&M) TASK ORDER 0026 AGAINST THE INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT (ITSSC), CONTRACT NUMBER SS00-10-60082, WITH NORTHROP GRUMMAN, FOR CONTRACTOR SUPPORT WITH TASKS RELATED TO TECHNICAL AREA 1 (APPLICATION AND BUSINESS PLANNING, ANAL… Key points: 1. The task order focuses on application planning, data administration, and software engineering management. 2. Northrop Grumman Systems Corporation is the contractor, with the Social Security Administration as the agency. 3. The contract type is Time and Materials (T&M), which can pose cost control risks. 4. This award falls under the 'Other Computer Related Services' NAICS code (541519).
Value Assessment
Rating: questionable
The Time and Materials (T&M) contract type is inherently less predictable for pricing compared to fixed-price contracts. Without clear cost ceilings or robust oversight, the final cost can exceed initial estimates. Benchmarking T&M contracts is challenging due to variable labor hours and rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the T&M pricing structure may limit the effectiveness of price discovery during the bidding phase, as the final cost is dependent on actual labor hours expended.
Taxpayer Impact: The T&M nature of the contract introduces potential for cost overruns, impacting taxpayer funds if not managed tightly. The competitive award mitigates some risk, but vigilance on hours and rates is crucial.
Public Impact
Citizens rely on the Social Security Administration for critical services, making efficient IT support essential. The use of T&M contracts can lead to increased costs for taxpayers if not carefully monitored. The scope covers vital areas like application planning and software engineering, impacting service delivery. Contract performance directly influences the agency's ability to maintain and improve its IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type
- Potential for cost overruns
- Lack of specific cost ceiling mentioned
Positive Signals
- Full and open competition
- Awarded to established contractor
Sector Analysis
This spending falls within the IT services sector, specifically 'Other Computer Related Services'. Benchmarks for IT support services vary widely based on scope and contract type, but T&M contracts often carry a higher risk profile for cost escalation compared to fixed-price arrangements.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not primary participants in this specific award, though they may be subcontractors.
Oversight & Accountability
Oversight of T&M contracts is critical to ensure fair pricing and prevent cost creep. The agency must diligently track labor hours, rates, and task completion against the contract's objectives to ensure accountability and value for taxpayer money.
Related Government Programs
- Other Computer Related Services
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Time and Materials contract type poses inherent cost risk.
- Lack of specified ceiling price or cap.
- Potential for scope creep without strict management.
- Reliance on contractor's time tracking accuracy.
- Limited visibility into subcontractor costs if applicable.
Tags
other-computer-related-services, social-security-administration, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $94.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::CL::IGF TIME AND MATERIALS (T&M) TASK ORDER 0026 AGAINST THE INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT (ITSSC), CONTRACT NUMBER SS00-10-60082, WITH NORTHROP GRUMMAN, FOR CONTRACTOR SUPPORT WITH TASKS RELATED TO TECHNICAL AREA 1 (APPLICATION AND BUSINESS PLANNING, ANALYSIS AND REQUIREMENTS), TECHNICAL AREA 5 (DATA ADMINISTRATION, PROGRAMMATIC REPOSITORY, AND ENTERPRISE ARCHITECTURE), AND TECHNICAL AREA 8 (SOFTWARE ENGINEERING MANAGEMENT).
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 $94.4 million.
What is the period of performance?
Start: 2015-09-29. End: 2016-09-28.
What specific mechanisms are in place to control costs and ensure value within this Time and Materials contract, given its significant value?
Effective oversight of T&M contracts typically involves rigorous monitoring of labor hours, validation of rates against market data, and strict adherence to defined task orders. The agency should have established procedures for reviewing and approving contractor invoices, potentially including independent government cost estimates for key tasks to ensure the pricing remains fair and reasonable throughout the contract period.
How does the agency ensure that the 'full and open competition' process effectively managed potential cost escalations inherent in a T&M contract?
While full and open competition aims for the best value, T&M contracts present unique challenges. The agency likely evaluated proposals based on factors beyond just price, such as the contractor's proposed labor mix, historical performance, and management approach to cost control. Post-award, continuous monitoring and negotiation are key to managing T&M costs effectively, ensuring the competitive advantage is maintained.
What is the projected impact of this contract's T&M structure on the Social Security Administration's IT modernization or service delivery goals?
The T&M structure allows for flexibility in adapting to evolving IT needs, which can be beneficial for complex projects. However, it also introduces budget uncertainty. If costs escalate significantly, it could divert funds from other IT initiatives or service improvements. The agency must balance this flexibility with strong financial controls to ensure it meets its strategic objectives without undue cost increases.
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: $94,428,863
Exercised Options: $94,428,863
Current Obligation: $94,428,863
Subaward Activity
Number of Subawards: 86
Total Subaward Amount: $124,266,901
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SS001060082
IDV Type: IDC
Timeline
Start Date: 2015-09-29
Current End Date: 2016-09-28
Potential End Date: 2016-09-28 00:00:00
Last Modified: 2016-07-12
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