Northrop Grumman Awarded $40.3M for SSA CIO Operational Support

Contract Overview

Contract Amount: $40,350,355 ($40.4M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Social Security Administration

Start Date: 2018-06-29

End Date: 2020-03-20

Contract Duration: 630 days

Daily Burn Rate: $64.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CONTRACTOR TO PROVIDE OPERATIONAL SUPPORT AND SUBJECT MATTER EXPERTISE FOR THE AGENCY'S OFFICE OF THE CHIEF INFORMATION OFFICER

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $40.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CONTRACTOR TO PROVIDE OPERATIONAL SUPPORT AND SUBJECT MATTER EXPERTISE FOR THE AGENCY'S OFFICE OF THE CHIEF INFORMATION OFFICER Key points: 1. Contract focuses on IT operational support and subject matter expertise. 2. Large prime contractor Northrop Grumman is the awardee. 3. Spending is within the "Other Computer Related Services" NAICS code. 4. The contract was awarded via full and open competition.

Value Assessment

Rating: good

The contract value of $40.3M over approximately two years appears reasonable for specialized IT operational support. Benchmarking against similar contracts for IT services with large defense contractors would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded through full and open competition, this method generally promotes competitive pricing. The specific price discovery mechanisms within the solicitation and evaluation process are not detailed here.

Taxpayer Impact: Competition likely ensured a fair price, maximizing taxpayer value for essential IT support services.

Public Impact

Ensures continuity of IT operations for the Social Security Administration. Supports critical functions within the agency's Chief Information Officer's office. Potential impact on the efficiency and effectiveness of SSA's IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Contract duration of 630 days may require extensions.
  • Lack of specific performance metrics makes assessing value difficult.
  • Potential for scope creep in operational support contracts.

Positive Signals

  • Awarded through full and open competition.
  • Experienced prime contractor.
  • Supports critical agency functions.

Sector Analysis

This contract falls under IT services, specifically computer related services. Spending benchmarks for similar IT operational support contracts with federal agencies vary widely based on scope and complexity.

Small Business Impact

The awardee is a large business, and there is no indication of small business participation in this specific contract award.

Oversight & Accountability

Oversight is likely managed by the Social Security Administration's contracting officers and program managers. Accountability for performance rests with Northrop Grumman.

Related Government Programs

  • Other Computer Related Services
  • Social Security Administration Contracting
  • Social Security Administration Programs

Risk Flags

  • Potential for vendor lock-in.
  • Lack of detailed performance metrics.
  • Contract duration may necessitate follow-on actions.
  • Scope creep risk in operational support.

Tags

other-computer-related-services, social-security-administration, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $40.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CONTRACTOR TO PROVIDE OPERATIONAL SUPPORT AND SUBJECT MATTER EXPERTISE FOR THE AGENCY'S OFFICE OF THE CHIEF INFORMATION OFFICER

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 $40.4 million.

What is the period of performance?

Start: 2018-06-29. End: 2020-03-20.

What specific metrics are used to evaluate the contractor's performance and ensure value for money?

The provided data does not detail specific performance metrics. Effective oversight would involve clearly defined Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) tied to operational uptime, response times, and issue resolution rates to ensure the contractor delivers tangible value and meets agency needs.

How does this contract align with the agency's long-term IT strategy and modernization efforts?

The contract's focus on operational support suggests it addresses current IT needs. Its alignment with long-term strategy depends on whether the expertise provided contributes to modernization or merely maintains existing systems. Further analysis of the SOW and agency IT plans is needed.

What is the potential risk of vendor lock-in or over-reliance on this contractor for critical IT functions?

With a large prime contractor providing operational support and expertise, there's a moderate risk of vendor lock-in if knowledge transfer and documentation are insufficient. The agency should ensure clear exit strategies and knowledge sharing protocols are in place.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 28321318R00000034

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $92,053,695

Exercised Options: $40,732,604

Current Obligation: $40,350,355

Actual Outlays: $5,910,924

Subaward Activity

Number of Subawards: 301

Total Subaward Amount: $141,045,643

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SS001760017

IDV Type: IDC

Timeline

Start Date: 2018-06-29

Current End Date: 2020-03-20

Potential End Date: 2022-09-28 00:00:00

Last Modified: 2019-11-25

More Contracts from Northrop Grumman Systems Corporation

View all Northrop Grumman Systems Corporation federal contracts →

Other Social Security Administration Contracts

View all Social Security Administration contracts →

Explore Related Government Spending