Northrop Grumman awarded $59.3M contract for strategic mission support by GSA
Contract Overview
Contract Amount: $59,259,162 ($59.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: General Services Administration
Start Date: 2019-09-23
End Date: 2025-03-22
Contract Duration: 2,007 days
Daily Burn Rate: $29.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: USARAF STRATEGIC MISSION SUPPORT CONTRACT
Plain-Language Summary
General Services Administration obligated $59.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: USARAF STRATEGIC MISSION SUPPORT CONTRACT Key points: 1. Contract value represents a significant investment in engineering services. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration extends over multiple fiscal years, indicating long-term needs. 4. The award is a delivery order under a larger contract vehicle. 5. Northrop Grumman is a major defense contractor with extensive experience. 6. Engineering services are critical for supporting complex government operations.
Value Assessment
Rating: good
The contract value of $59.3 million for engineering services appears reasonable given the multi-year duration and the nature of strategic mission support. Benchmarking against similar large-scale engineering contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that cost risks are largely borne by the contractor, which can be favorable for the government if managed effectively. However, without specific performance metrics or detailed cost breakdowns, a definitive assessment of cost efficiency is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific delivery order. While two bidders is better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.
Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it aims to secure the best value through a wide range of offers, fostering a competitive environment that can drive down costs.
Public Impact
The primary beneficiaries are likely government agencies requiring specialized engineering and strategic support services. Services delivered will focus on supporting complex missions and operational requirements. The geographic impact is likely national, supporting federal operations across various locations. Workforce implications may include specialized engineering roles and support staff within Northrop Grumman.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creep occurs within the firm-fixed-price contract.
- Reliance on a single large contractor may limit future flexibility or innovation.
- Ensuring adequate oversight to confirm delivery of all specified strategic support services.
Positive Signals
- Award to an experienced contractor like Northrop Grumman suggests a high likelihood of successful service delivery.
- Firm-fixed-price contract provides cost certainty for the government.
- Long contract duration allows for stable planning and execution of strategic initiatives.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. This sector supports a wide array of government functions, from defense and infrastructure to research and development. The market is characterized by large, established firms capable of handling complex, high-value projects, as well as smaller specialized firms. Government spending in this area is substantial, reflecting the ongoing need for expert technical and strategic advice.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often engage small businesses for specialized support.
Oversight & Accountability
Oversight for this contract is likely managed by the contracting officer and the relevant program office within the General Services Administration (GSA) or the end-user agency. Accountability measures would be tied to the contract's performance work statement and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance data may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Strategic Planning Services
- Engineering Consulting
- Federal IT Support Contracts
- Defense Mission Support
- Government Program Management
Risk Flags
- Potential for scope creep
- Limited competition observed
- Contract duration extends over multiple years
Tags
engineering-services, general-services-administration, northrop-grumman-systems-corporation, firm-fixed-price, full-and-open-competition, delivery-order, strategic-mission-support, federal-acquisition-service, large-contract, professional-scientific-and-technical-services
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $59.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. USARAF STRATEGIC MISSION SUPPORT CONTRACT
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $59.3 million.
What is the period of performance?
Start: 2019-09-23. End: 2025-03-22.
What is Northrop Grumman's track record with similar strategic mission support contracts?
Northrop Grumman Systems Corporation has a long and extensive history of providing complex support services to various government agencies, including defense, intelligence, and civilian sectors. Their track record includes large-scale program management, systems engineering, and strategic planning initiatives. While specific details of past performance on contracts identical to this one are not publicly detailed in this data, their overall profile as a major defense and aerospace contractor suggests a capacity to handle substantial and critical government support requirements. Past performance evaluations, often available through government contract databases or agency reports, would offer a more granular view of their success rates, adherence to schedules, and quality of deliverables on comparable projects.
How does the awarded amount compare to similar engineering services contracts?
The awarded amount of approximately $59.3 million for strategic mission support, categorized under engineering services (NAICS 541330), places it in the mid-to-large tier for individual contract awards. Benchmarking requires comparison with contracts of similar scope, duration, and complexity. For instance, multi-year, full-service engineering support contracts for major federal programs can range from tens to hundreds of millions of dollars. Given the firm-fixed-price structure and a duration extending into 2025, this value appears consistent with market rates for comprehensive strategic support provided by large, experienced firms. However, a precise comparison would necessitate access to detailed cost breakdowns and performance metrics from comparable contracts.
What are the primary risks associated with this contract?
Key risks for this contract include potential scope creep, where the requirements may expand beyond the initial agreement, potentially leading to cost overruns if not managed strictly within the firm-fixed-price structure. Another risk is contractor performance; while Northrop Grumman is a reputable firm, ensuring consistent delivery of high-quality strategic support services over the contract's duration is crucial. Dependence on a single large contractor could also pose a long-term risk if it limits flexibility or the adoption of newer technologies. Furthermore, ensuring adequate government oversight to monitor progress and validate deliverables against the contract's objectives is essential to mitigate risks related to service effectiveness and value realization.
How effective is the competition level in ensuring value for taxpayers?
The contract was awarded under 'full and open competition' with two bids received. While full and open competition is the preferred method for maximizing taxpayer value by allowing all eligible sources to compete, the receipt of only two bids suggests a potentially limited competitive landscape for this specific requirement. A higher number of bidders typically intensifies competition, driving down prices and encouraging innovation. With only two bidders, there is a risk that the government may not have achieved the lowest possible price or the most optimal solution available in the market. The effectiveness hinges on whether these two bidders were highly capable and aggressively priced their offers, and whether the government's evaluation process rigorously selected the best value.
What is the historical spending trend for similar engineering services by the GSA?
Historical spending by the General Services Administration (GSA) on engineering services, particularly under its Federal Acquisition Service (FAS), has been substantial, reflecting its role in providing centralized procurement solutions for government agencies. GSA often utilizes large indefinite-delivery/indefinite-quantity (IDIQ) contracts and task orders to procure these services. Spending trends in this category are generally influenced by overall federal budget allocations for infrastructure, technology modernization, and operational support across civilian agencies. While specific year-over-year trends for NAICS 541330 procured through GSA require detailed analysis of historical procurement data, the consistent need for engineering expertise suggests a stable to growing demand, often driven by agency modernization efforts and complex project requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: ID03190020
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
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: $65,707,681
Exercised Options: $65,707,681
Current Obligation: $59,259,162
Subaward Activity
Number of Subawards: 149
Total Subaward Amount: $554,567,868
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU125
IDV Type: IDC
Timeline
Start Date: 2019-09-23
Current End Date: 2025-03-22
Potential End Date: 2025-03-22 00:00:00
Last Modified: 2025-09-10
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