DoD's $52M Facilities Support Contract Awarded to Northrop Grumman Amidst Concerns
Contract Overview
Contract Amount: $52,262,180 ($52.3M)
Contractor: Northrop Grumman Space & Mission Systems Corp.
Awarding Agency: Department of Defense
Start Date: 2005-08-03
End Date: 2010-06-30
Contract Duration: 1,792 days
Daily Burn Rate: $29.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Place of Performance
Location: FORT HOOD, BELL County, TEXAS, 76544
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $52.3 million to NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP. for work described as: Key points: 1. Significant contract value of $52.26 million awarded. 2. Northrop Grumman secured the contract through full and open competition. 3. Potential risks associated with cost-plus fixed-fee contract type. 4. Facilities Support Services sector sees substantial government spending.
Value Assessment
Rating: fair
The contract's cost-plus fixed-fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar facilities support contracts is difficult without detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a robust price discovery process. However, the cost-plus fixed-fee nature may still allow for costs to exceed initial estimates.
Taxpayer Impact: Taxpayer funds are utilized for facilities support services, with the potential for costs to escalate beyond initial projections due to the contract type.
Public Impact
Ensures essential facilities support services for the Department of the Army. Competition potentially drives efficiency and cost-effectiveness. Long-term contract duration (2005-2010) indicates ongoing need. Transparency in spending is crucial given the contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus fixed-fee contract type
- Lack of specific per-unit cost data
- Long contract duration
Positive Signals
- Full and open competition
- Established contractor
- Clear service category
Sector Analysis
This contract falls within the Facilities Support Services sector, which is critical for government operations. Spending in this sector can vary significantly based on infrastructure needs and contract scope.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting larger prime contractors dominated the bidding process for this specific requirement.
Oversight & Accountability
Oversight is crucial for cost-plus fixed-fee contracts to ensure that costs are reasonable and allocable. The Department of Defense's contracting officers are responsible for monitoring performance and expenditures.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost-plus fixed-fee contract type can lead to cost overruns.
- Lack of detailed cost data makes benchmarking difficult.
- Potential for scope creep without strict oversight.
- Long contract duration may not reflect current market conditions.
- No indication of small business participation.
Tags
facilities-support-services, department-of-defense, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.3 million to NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $52.3 million.
What is the period of performance?
Start: 2005-08-03. End: 2010-06-30.
What was the final cost compared to the initial estimate, and how did it align with market benchmarks for similar services?
Without the final obligated amount and detailed cost breakdowns, it's impossible to definitively state the final cost or compare it to initial estimates. Benchmarking is also challenging without specific service metrics and pricing structures. Further analysis would require access to the contract's completion reports and cost performance data.
What specific risks were identified during the contract's lifecycle, and how were they mitigated by the contracting agency?
The primary risk associated with a cost-plus fixed-fee contract is the potential for cost overruns. Mitigation strategies would typically involve rigorous oversight, detailed cost audits, and clear performance metrics. The agency would need to ensure all costs claimed by the contractor were reasonable, allocable, and allowable under the contract terms.
How effectively did the full and open competition process ensure value for money, considering the contract's cost-plus structure?
Full and open competition is designed to maximize value by encouraging broad participation and driving competitive pricing. However, the cost-plus fixed-fee structure introduces inherent cost uncertainty. While competition likely set a baseline for the fixed fee and profit, the ultimate value for money depends heavily on the agency's ability to control and audit the 'cost' portion throughout the contract's duration.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATION OF SHIPS, SMALL CRAFTS, PONTOONS AND FLOATING DOCKS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 100 SUN AVENUE NE, STE-300, ALBUQUERQUE, NM, 01
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DABK0103D0008
IDV Type: IDC
Timeline
Start Date: 2005-08-03
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 00:00:00
Last Modified: 2014-08-25
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