DoD Awards Northrop Grumman $18.2M for Engineering Services, Full and Open Competition

Contract Overview

Contract Amount: $18,219,371 ($18.2M)

Contractor: Northrop Grumman Corporation

Awarding Agency: Department of Defense

Start Date: 2004-07-08

End Date: 2006-11-30

Contract Duration: 875 days

Daily Burn Rate: $20.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: 200411!000116!9700!H94003!DEF MICROELECTRONICS ACTIVITY !DMEA9099D0006 !A!N! !N!0053 ! !20040708!20060630!091808832!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!ELECTRONIC SYSTEMS !LINTHICUM HEIG !MD!21090!04000!510!24!BALTIMORE !BALTIMORE (CITY) !MARYLAND !+000007816725!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A!U!U!2!007!B! !Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to NORTHROP GRUMMAN CORPORATION for work described as: 200411!000116!9700!H94003!DEF MICROELECTRONICS ACTIVITY !DMEA9099D0006 !A!N! !N!0053 ! !20040708!20060630!091808832!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!ELECTRONIC SYSTEMS !LINTHICUM HEIG !MD!21090!04000!510!24!BALTIMORE !BALT… Key points: 1. Contract awarded to Northrop Grumman Systems Corp for engineering technical services. 2. The contract value is $18.2 million with a duration of 875 days. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is primarily engineering services, supporting defense electronics. 5. Risk appears moderate given the established contractor and service type.

Value Assessment

Rating: fair

The contract value of $18.2 million for engineering services over approximately 2.4 years appears within a reasonable range for complex technical support. Benchmarking against similar large-scale engineering contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the engineering services rendered, avoiding potential overpayment associated with sole-source contracts.

Public Impact

Supports critical defense microelectronics activities, enhancing national security capabilities. The contract provides long-term engineering support, ensuring continuity in vital defense programs. Investment in engineering services can lead to technological advancements and improved defense systems. Potential for job creation within the engineering and technical services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 875 days may require careful monitoring for scope creep.
Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize fee.
Reliance on a single large contractor for critical services.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Northrop Grumman is a well-established defense contractor with relevant expertise.
Contract supports a critical defense need (microelectronics activity).

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense electronics and microelectronics. Spending in this area is crucial for maintaining technological superiority in defense.

Small Business Impact

While the prime contractor is Northrop Grumman, a large corporation, there is no specific information provided regarding small business participation in this contract. Further investigation into subcontracting plans would be needed.

Oversight & Accountability

The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Standard oversight mechanisms for CPFF contracts should be in place to ensure performance and cost control.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration (875 days).
Potential for cost overruns if not closely monitored.
Reliance on a single large prime contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to NORTHROP GRUMMAN CORPORATION. 200411!000116!9700!H94003!DEF MICROELECTRONICS ACTIVITY !DMEA9099D0006 !A!N! !N!0053 ! !20040708!20060630!091808832!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!ELECTRONIC SYSTEMS !LINTHICUM HEIG !MD!21090!04000!510!24!BALTIMORE !BALTIMORE (CITY) !MARYLAND !+000007816725!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !999

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.2 million.

What is the period of performance?

Start: 2004-07-08. End: 2006-11-30.

What specific engineering technical services are being provided under this contract?

The contract specifies 'ENGINEERING TECHNICAL SERVICES' and falls under the Product Service Code (PSC) '541330' for Engineering Services. While the data indicates support for 'DEF MICROELECTRONICS ACTIVITY', the precise nature of the technical services, such as design, analysis, testing, or integration, is not detailed in this summary. Further documentation would be required for specifics.

What are the key performance indicators (KPIs) for this contract and how is performance being measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or the specific methods used for performance measurement. For a Cost Plus Fixed Fee contract, performance is typically evaluated against defined technical requirements, delivery schedules, and quality standards. The Defense Contract Management Agency (DCMA) would be responsible for monitoring these aspects.

Are there any potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context?

Yes, CPFF contracts carry inherent risks. While they allow for flexibility in scope, they can incentivize contractors to increase costs to maximize their fixed fee, potentially leading to cost overruns if not rigorously managed. Effective oversight is crucial to ensure cost efficiency and prevent unnecessary expenditures.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 1580 B WEST NURSERY RD, LINTHICUM HEIG, MD

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline