Northrop Grumman received over $116M for IT support services, including application planning, data administration, and software engineering
Contract Overview
Contract Amount: $116,485,633 ($116.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Social Security Administration
Start Date: 2017-09-29
End Date: 2018-09-28
Contract Duration: 364 days
Daily Burn Rate: $320.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: IGF::CT::IGF LABOR HOUR TASK ORDER AGAINST THE INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT 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 $116.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::CT::IGF LABOR HOUR TASK ORDER AGAINST THE INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT 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 (DAT… Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The duration of the contract was one year, indicating a short-term need for these services. 3. The contract type is labor hours, which can be subject to cost overruns if not managed effectively. 4. The services cover a broad range of IT functions, from planning and analysis to software engineering. 5. The award was a delivery order against an existing contract, implying a pre-established relationship and framework. 6. The North American Industry Classification System (NAICS) code 541519 suggests a focus on 'Other Computer Related Services'.
Value Assessment
Rating: fair
The total award amount of $116.5 million for a one-year IT support contract is substantial. Without specific performance metrics or detailed breakdowns of labor categories and rates, a precise value-for-money assessment is challenging. However, given the breadth of services (application planning, data administration, software engineering) and the contractor's established presence, the pricing is likely within a reasonable range for complex IT support. Benchmarking against similar large-scale IT support contracts would be necessary for a more definitive evaluation of cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency likely sought proposals that best met technical requirements and offered competitive pricing.
Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider pool of contractors to offer their services.
Public Impact
The Social Security Administration (SSA) benefits from enhanced IT support, ensuring the smooth operation of its critical systems. Citizens and beneficiaries of SSA programs benefit indirectly through the reliable functioning of the agency's IT infrastructure. The contract supports IT professionals in Maryland, where the contract was administered. The services provided are crucial for maintaining and developing the complex software and data systems used by the SSA.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Labor hour contracts can lead to increased costs if not closely monitored for efficiency and necessity of hours billed.
- The broad scope of IT services could present challenges in ensuring specialized expertise is consistently available and cost-effectively utilized.
- Reliance on a single large contractor for critical IT functions may pose risks if performance issues arise or if the contractor's strategic priorities shift.
Positive Signals
- Awarded under full and open competition, suggesting a robust and fair bidding process.
- Northrop Grumman is a large, established defense and IT contractor with a significant track record.
- The contract addresses essential IT functions critical to the SSA's mission.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on computer-related services. The IT services market is highly competitive and dynamic, with significant government spending allocated to maintaining and modernizing federal IT infrastructure. The total IT spending by the federal government runs into billions annually, with a substantial portion dedicated to support services, software development, and system integration. This contract represents a portion of the SSA's investment in ensuring its technological capabilities align with its mission requirements.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major corporation, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified within the contract's terms, which are not detailed here. The focus on a large prime contractor may limit direct participation for smaller IT firms in this specific award.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Social Security Administration. Performance reviews, regular reporting, and audits are standard mechanisms to ensure contractor performance and adherence to contract terms. The Inspector General's office for the SSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Information Technology Support Services
- Application and Business Planning
- Data Administration
- Software Engineering Management
- Enterprise Architecture
Risk Flags
- Labor Hour Contract Type Risk
- Potential for Scope Creep
- Contractor Performance Monitoring
- Reliance on Single Large Contractor
Tags
it-services, social-security-administration, northrop-grumman, maryland, labor-hours, full-and-open-competition, delivery-order, it-support, software-engineering, data-administration, application-planning, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $116.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::CT::IGF LABOR HOUR TASK ORDER AGAINST THE INFORMATION TECHNOLOGY SUPPORT SERVICES CONTRACT 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 $116.5 million.
What is the period of performance?
Start: 2017-09-29. End: 2018-09-28.
What is Northrop Grumman's track record with the Social Security Administration and other federal agencies for similar IT support contracts?
Northrop Grumman is a major federal contractor with extensive experience across various agencies, including the Social Security Administration (SSA). Their track record generally includes large-scale IT services, defense systems, and aerospace. For the SSA, they have historically been involved in providing IT support, modernization, and related services. While specific performance details for this particular $116 million contract are not publicly detailed in this data, Northrop Grumman's overall performance with federal agencies is typically characterized by large, complex projects. Agencies often evaluate contractor past performance as a key factor in source selection. Reviews of past performance can be found in federal procurement databases and agency-specific reports, often highlighting successes and areas for improvement in areas like project management, technical execution, and cost control.
How does the $116.5 million cost compare to similar IT support contracts awarded by the SSA or other agencies of comparable size?
The $116.5 million award for a one-year IT support contract is a significant sum, reflecting the complexity and scope of services required by the Social Security Administration. To benchmark this cost, one would need to compare it against similar 'labor hour' or 'time and materials' contracts for comprehensive IT support services (NAICS 541519) awarded by agencies like the Department of Health and Human Services (HHS), Veterans Affairs (VA), or other large civilian agencies. Factors influencing cost include the specific technical areas covered (application planning, data administration, software engineering), the level of expertise required, geographic location of personnel, and the overall duration. Without access to detailed pricing structures and specific service level agreements for comparable contracts, a precise value comparison is difficult. However, for a large agency like the SSA, such an expenditure for critical IT functions is not unusual, though continuous monitoring for efficiency and necessity of hours is paramount.
What are the primary risks associated with this contract, and what mitigation strategies are likely in place?
Primary risks associated with this contract include potential cost overruns due to the 'labor hours' contract type, where billing is based on hours worked rather than fixed deliverables. Scope creep, where requirements expand beyond the initial agreement, is another risk. Performance degradation or failure to deliver critical IT functions could impact the SSA's operations. Additionally, reliance on a single large contractor can create dependency. Mitigation strategies likely include robust contract management by the SSA, including detailed monitoring of hours billed, regular performance reviews against defined metrics, and strict change control processes to manage scope. Clear communication channels with Northrop Grumman, defined service level agreements (SLAs), and contingency planning for critical functions would also be employed to manage these risks effectively.
How effective is the 'full and open competition' process in ensuring the SSA obtains the best value for its IT support services?
The 'full and open competition' process is designed to maximize the potential for the SSA to obtain the best value by encouraging a wide range of qualified vendors to submit proposals. This competitive environment typically drives down prices and incentivizes contractors to offer innovative solutions and high-quality services to win the contract. By allowing all responsible sources to compete, the SSA increases its chances of finding a contractor that not only meets technical requirements but also offers the most cost-effective solution. The effectiveness is further enhanced by a well-defined Statement of Work (SOW) and a thorough evaluation process that considers both technical merit and price. However, the ultimate effectiveness depends on the clarity of requirements and the rigor of the evaluation criteria used during the competition.
What is the historical spending pattern for IT support services at the SSA, and how does this $116.5 million award fit within that trend?
Historical spending on IT support services at the Social Security Administration (SSA) has consistently been substantial, reflecting the agency's reliance on complex IT systems to manage social insurance programs. The SSA's IT budget typically encompasses a wide array of services, including system maintenance, software development, infrastructure management, and cybersecurity. Annual spending on IT support can fluctuate based on modernization initiatives, system upgrades, and evolving technological needs. A $116.5 million award for a one-year contract focused on specific IT support tasks represents a significant, but not necessarily anomalous, expenditure within the context of the SSA's overall IT budget. To understand its trend fit, one would need to analyze SSA's IT spending over several preceding years, looking at the average annual spend on similar service categories and the number and value of major IT contracts awarded.
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: LABOR HOURS (Z)
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: $116,485,633
Exercised Options: $116,485,633
Current Obligation: $116,485,633
Actual Outlays: $32,480
Subaward Activity
Number of Subawards: 177
Total Subaward Amount: $1,039,887,284
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: 2017-09-29
Current End Date: 2018-09-28
Potential End Date: 2018-09-28 00:00:00
Last Modified: 2017-09-29
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