DoD's $91.8M ENCORE II IT contract with Northrop Grumman awarded under full and open competition
Contract Overview
Contract Amount: $91,784,711 ($91.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2009-06-18
End Date: 2014-10-15
Contract Duration: 1,945 days
Daily Burn Rate: $47.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: ENCORE II IT SOLUTIONS - CPFF
Place of Performance
Location: FORT MONMOUTH, MONMOUTH County, NEW JERSEY, 07703
Plain-Language Summary
Department of Defense obligated $91.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ENCORE II IT SOLUTIONS - CPFF Key points: 1. Significant investment in R&D for physical, engineering, and life sciences. 2. Contract awarded to a major defense contractor, Northrop Grumman. 3. Full and open competition suggests potential for competitive pricing. 4. Cost Plus Fixed Fee (CPFF) structure can incentivize cost overruns. 5. Long contract duration (1945 days) indicates a substantial project.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure, while common for R&D, can lead to higher costs compared to fixed-price contracts. Benchmarking against similar R&D contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the CPFF structure might limit the direct price discovery benefits typically seen in fixed-price contracts.
Taxpayer Impact: Taxpayer funds are being used for research and development, with the ultimate value and return on investment dependent on the project's success.
Public Impact
Supports advanced research and development within the Department of Defense. Potential for technological advancements with broad applications. Long-term commitment of resources for a specific research area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can lead to cost overruns.
- Long contract duration may not reflect current market needs.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Awarded through full and open competition.
- Supports critical defense research and development.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, excluding biotechnology. Spending in this area is crucial for technological advancement but can be highly variable and difficult to benchmark due to its specialized nature.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as Northrop Grumman is a large corporation. There is no information on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
Oversight would typically be managed by the Defense Information Systems Agency (DISA). The CPFF structure necessitates robust oversight to ensure costs are reasonable and allocable to the contract's objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Cost overrun risk due to CPFF structure.
- Potential for scope creep over the long contract duration.
- Difficulty in measuring ROI for R&D contracts.
- Lack of transparency on specific project deliverables and outcomes.
Tags
research-and-development-in-the-physical, department-of-defense, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $91.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ENCORE II IT SOLUTIONS - CPFF
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 (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $91.8 million.
What is the period of performance?
Start: 2009-06-18. End: 2014-10-15.
What specific R&D objectives were prioritized under this contract, and how do they align with current defense priorities?
The contract's NAICS code (541712) indicates research in physical, engineering, and life sciences. Without specific project details, it's challenging to ascertain the exact objectives. However, R&D in these areas is generally aligned with maintaining technological superiority and addressing evolving threats for national security.
What mechanisms were in place to control costs and ensure efficiency given the Cost Plus Fixed Fee structure?
The CPFF structure requires rigorous oversight from the contracting agency (DISA) to scrutinize costs, ensure they are reasonable and allocable, and verify that the fixed fee is earned. Mechanisms likely included regular audits, progress reviews, and defined allowable cost principles.
How has the research and development funded by this contract contributed to tangible advancements or capabilities for the Department of Defense?
Assessing the tangible contributions requires access to project reports and performance evaluations, which are not publicly available. The long duration suggests a significant undertaking, but the ultimate impact on defense capabilities can only be determined through post-contract analysis and adoption of developed technologies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
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: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $92,582,882
Exercised Options: $91,784,711
Current Obligation: $91,784,711
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102808D2023
IDV Type: IDC
Timeline
Start Date: 2009-06-18
Current End Date: 2014-10-15
Potential End Date: 2014-12-15 00:00:00
Last Modified: 2018-09-20
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