Northrop Grumman's $100.5M IT task order for SSA application and software engineering services awarded under full and open competition
Contract Overview
Contract Amount: $100,480,017 ($100.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Social Security Administration
Start Date: 2016-09-29
End Date: 2017-09-28
Contract Duration: 364 days
Daily Burn Rate: $276.0K/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 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 $100.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::CL::IGF TIME AND MATERIALS (T&M) TASK ORDER 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 … Key points: 1. The contract was awarded as a Time and Materials (T&M) task order, which can carry higher risk of cost overruns compared to fixed-price contracts. 2. The task order was issued against a larger Information Technology Support Services Contract (ITSSC), suggesting a pre-existing relationship and established performance baseline. 3. The contract covers critical IT functions including application planning, data administration, and software engineering management, indicating a need for specialized technical expertise. 4. The duration of the contract is one year, suggesting a focus on specific project phases or ongoing support rather than long-term strategic development. 5. The award was made under full and open competition, which typically fosters competitive pricing and a wider pool of potential contractors. 6. The contract value of over $100 million represents a significant investment in IT support services for the Social Security Administration (SSA).
Value Assessment
Rating: fair
The contract value of $100.5 million for a one-year duration is substantial. As a Time and Materials (T&M) contract, it carries inherent risks for cost control compared to fixed-price arrangements. Benchmarking T&M contracts for similar IT support services is challenging without more granular data on labor categories and hours. However, the scale of this award suggests a significant need for specialized IT expertise within the SSA.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This task order was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the competitive nature of the award process is expected to drive price discovery and potentially lead to more favorable terms for the government. The use of a pre-existing ITSSC contract vehicle likely streamlined the competition process.
Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a competitive environment that can lead to lower prices and better value for services rendered.
Public Impact
Beneficiaries include the Social Security Administration (SSA) staff who will receive enhanced IT support. Services delivered encompass critical IT functions such as application and business planning, data administration, and software engineering management. The geographic impact is primarily within the SSA's operational centers, likely concentrated in Maryland where the contractor is based. Workforce implications include the direct employment of personnel by Northrop Grumman to fulfill the contract requirements, potentially including specialized IT professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type increases risk of cost overruns if not closely monitored.
- Lack of specific bidder count for the full and open competition makes it difficult to assess the true level of competition.
- The contract value is substantial, requiring diligent oversight to ensure efficient use of taxpayer funds.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- Task order issued against an existing IT Support Services Contract (ITSSC), implying a streamlined procurement and potential for established performance metrics.
- Covers essential IT functions critical to SSA operations.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on IT support services. The market for such services is vast and highly competitive, with numerous large and small businesses offering a wide range of capabilities. The SSA's reliance on IT for its core operations, including managing vast amounts of citizen data and processing claims, makes IT support a critical and ongoing expenditure. Comparable spending benchmarks would typically involve analyzing other large federal IT support contracts awarded to major defense and IT contractors.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, Northrop Grumman, is a large business, and any subcontracting would be at their discretion, not mandated by a set-aside provision. The impact on the small business ecosystem is neutral in terms of direct set-aside opportunities for this specific award.
Oversight & Accountability
Oversight for this contract would primarily reside with the Social Security Administration's contracting officers and program managers. As a task order under a larger ITSSC contract, there may be established oversight mechanisms within that framework. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would typically fall under the SSA's Office of the Inspector General, which investigates fraud, waste, and abuse in SSA programs and operations.
Related Government Programs
- Information Technology Support Services Contract (ITSSC)
- Federal IT Services Procurement
- Application and Business Planning Services
- Software Engineering Management
- Data Administration Services
Risk Flags
- Time and Materials Contract Type
- Potential for Cost Overruns
- Large Contract Value Requires Diligent Oversight
Tags
it, social-security-administration, northrop-grumman, time-and-materials, task-order, full-and-open-competition, it-support-services, application-development, software-engineering, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $100.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::CL::IGF TIME AND MATERIALS (T&M) TASK ORDER 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 $100.5 million.
What is the period of performance?
Start: 2016-09-29. End: 2017-09-28.
What is the historical spending pattern for Northrop Grumman with the Social Security Administration under the ITSSC contract?
Analyzing historical spending patterns for Northrop Grumman under the ITSSC contract with the Social Security Administration (SSA) requires access to detailed contract award data beyond this single task order. The provided data indicates this specific task order (number 1) was awarded on September 29, 2016, for approximately $100.5 million, with an end date of September 28, 2017. To understand the broader historical spending, one would need to examine all task orders issued under the ITSSC contract to Northrop Grumman, as well as any other contracts between these two entities. This would involve looking at the total value of awards over time, the types of services procured, and the frequency of awards. Without this broader dataset, it's impossible to establish a comprehensive spending trend or pattern. However, the significant value of this single task order suggests a substantial and ongoing IT support relationship.
How does the pricing structure of this Time and Materials (T&M) contract compare to industry benchmarks for similar IT support services?
Benchmarking the pricing structure of this Time and Materials (T&M) contract against industry standards is challenging without specific details on the labor categories, hours, and rates billed by Northrop Grumman. T&M contracts are inherently variable, with costs directly tied to the effort expended. Industry benchmarks for IT support services often vary widely based on the complexity of the tasks, the required skill sets (e.g., senior software engineers vs. junior analysts), geographic location, and the specific service provider. Generally, T&M contracts are expected to be priced competitively at the labor category level, with overhead and profit margins also subject to market rates. The government typically negotiates these rates to ensure they are fair and reasonable. A comparison would ideally involve analyzing rates for similar roles (e.g., application developers, system administrators) from other large federal IT contracts or commercial IT service providers, considering factors like security clearances and experience levels.
What are the key performance indicators (KPIs) used to measure the success of this contract, and what has been Northrop Grumman's performance against them?
The provided data does not specify the Key Performance Indicators (KPIs) established for this particular Time and Materials (T&M) task order. For T&M contracts, performance is often measured through metrics related to timely completion of assigned tasks, adherence to technical specifications, and the efficient use of labor hours. The Social Security Administration (SSA) would typically have defined performance standards within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Measuring success would involve monitoring deliverables, progress reports, and potentially user satisfaction. Without access to the SOW/PWS and subsequent performance evaluations or contract close-out reports, it is not possible to assess Northrop Grumman's performance against specific KPIs for this contract. Contract award notices generally do not contain this level of performance detail.
What is the risk assessment associated with Northrop Grumman as a contractor for this type of IT support, considering their past performance and financial stability?
Northrop Grumman is a large, established defense and aerospace contractor with extensive experience in providing IT and systems integration services to the U.S. government. Their past performance record is generally considered strong, evidenced by numerous large federal contracts across various agencies. For this specific contract, the risk associated with Northrop Grumman's technical capability and project management is likely assessed as low to moderate, given their demonstrated expertise in areas like software engineering and application development. Financial stability is typically not a major concern for contractors of this size. However, risks associated with any large IT contract can include potential cost overruns (especially with T&M), schedule delays, and challenges in meeting evolving technical requirements. The government's procurement process includes reviews of past performance and contractor responsibility, which would have informed the decision to award this task order.
How does the $100.5 million value of this task order fit within the overall IT spending of the Social Security Administration?
The $100.5 million task order represents a significant portion of the Social Security Administration's (SSA) IT budget for the fiscal year it was active (likely FY2017, given the award and end dates). The SSA manages vast amounts of sensitive data and relies heavily on its IT infrastructure to process benefits, manage records, and serve the public. Annual IT spending for large federal agencies like the SSA can range from hundreds of millions to billions of dollars. This specific task order, covering critical application development, data administration, and software engineering, addresses core IT functions essential for the SSA's mission. While $100.5 million is a substantial sum, it needs to be viewed in the context of the SSA's total IT expenditure, which would encompass hardware, software, personnel, cybersecurity, and other support services. Without the SSA's overall IT budget figures for that period, it's difficult to precisely quantify its proportion, but it clearly signifies a major investment in essential IT support.
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: $100,480,017
Exercised Options: $100,480,017
Current Obligation: $100,480,017
Subaward Activity
Number of Subawards: 123
Total Subaward Amount: $418,040,091
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: 2016-09-29
Current End Date: 2017-09-28
Potential End Date: 2017-09-28 00:00:00
Last Modified: 2017-07-27
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