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 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
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
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