DoD's $10.3M NETCENTS contract to Northrop Grumman for wired telecom services awarded under full and open competition
Contract Overview
Contract Amount: $10,261,797 ($10.3M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Defense
Start Date: 2006-10-01
End Date: 2011-03-31
Contract Duration: 1,642 days
Daily Burn Rate: $6.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COMBINATION (TWO OR MORE)
Sector: IT
Official Description: NETCENTS CLIN 0004-SERVICES LH
Place of Performance
Location: SCOTT AFB, ST. CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $10.3 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: NETCENTS CLIN 0004-SERVICES LH Key points: 1. Spending on wired telecommunications carriers (NAICS 517110) is a mature market. 2. Northrop Grumman is a large, established defense contractor. 3. The contract duration of 1642 days (over 4 years) suggests a significant, ongoing need. 4. The award type 'AWARDED' indicates a completed procurement process.
Value Assessment
Rating: fair
The contract value of $10.3M over 4.5 years is moderate. Without specific service details or benchmarks for wired telecommunications carriers, a precise value assessment is difficult. However, the 'br' (benchmark rate) of 6250 suggests a potential comparison point.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces.
Public Impact
Ensures the Air Force has essential wired telecommunications infrastructure. Supports military operations and communication networks. Provides a stable revenue stream for the awarded contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics.
- Limited detail on the 'benchmark rate' (br).
Positive Signals
- Awarded under full and open competition.
- Long-term contract indicates sustained need and potential for economies of scale.
Sector Analysis
Spending in the wired telecommunications carriers sector is essential for government operations. Benchmarks for this sector vary widely based on service type and geographic location. This contract falls within the IT/Communications spending category for the DoD.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. As a large contract awarded to a major defense contractor, it is unlikely that small businesses were primary awardees, though they may have participated as subcontractors.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a standard procurement process. Further oversight details would require access to contract performance reports and agency oversight mechanisms.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed service description.
- Ambiguous benchmark rate (br).
- No information on small business subcontracting.
- Limited insight into performance metrics.
Tags
wired-telecommunications-carriers, department-of-defense, il, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.3 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. NETCENTS CLIN 0004-SERVICES LH
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $10.3 million.
What is the period of performance?
Start: 2006-10-01. End: 2011-03-31.
What specific wired telecommunications services were procured under this contract, and how do they align with the Air Force's operational needs?
The provided data lacks specifics on the exact services. However, NAICS code 517110 covers wired telecommunications carriers, which typically include services like broadband internet, dedicated lines, and voice communication infrastructure. These are fundamental for military command, control, and communication systems, ensuring operational readiness and data transmission capabilities.
How does the benchmark rate (br) of 6250 compare to industry standards for similar telecommunications services during the contract period?
The benchmark rate (br) of 6250 is presented without units or context, making direct comparison difficult. If it represents a cost per user, per line, or a monthly service fee, its competitiveness depends heavily on the specific service and market conditions of 2006-2011. Further analysis would require defining the benchmark's meaning and comparing it to contemporary market rates for comparable government or commercial contracts.
What was the total cost savings or value achieved through the full and open competition for this contract?
While full and open competition generally promotes cost savings, the exact amount is not quantifiable from the provided data. The 'aw' field indicates 'AWARDED', and the contract value is $10.3M. To determine savings, one would need to compare this award price to the government's estimate or to prices from a sole-source or limited competition scenario, which are not available here.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
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: 4
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 7575 COLSHIRE DRIVE, MCLEAN, VA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,261,797
Exercised Options: $10,261,797
Current Obligation: $10,261,797
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877104D0004
IDV Type: IDC
Timeline
Start Date: 2006-10-01
Current End Date: 2011-03-31
Potential End Date: 2011-03-31 00:00:00
Last Modified: 2013-02-14
More Contracts from Northrop Grumman Information Technology Inc
- Federal Contract — $442.4M (Department of Defense)
- Services--Dko Concept of Operations — $441.3M (Department of Defense)
- 200510!500520!2100!w912su!aca, Nrcc - Mission Division !W911S004C0006 !A!N! !Y! !p00006!20050707!20050930!064679264!064679264!016435559!n!northrop Grumman Information T!2411 Dulles Corner Park !herndon !va!20171!23950!103!20!fort Leavenworth !leavenworth !kansas !+000019492204!n!n!000000000000!r499!other Professional Services !S1 !services !000 !* !541519!E! !3! ! !B! ! !20200930!B! ! !A! !a!u!r!2!002!b! !C!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !W55C6Q!0001! ! — $431.7M (Department of Defense)
- Gccs-J System Engineering Igf::ot::igf — $197.7M (Department of Defense)
- Migrated Data Value Unknown — $103.0M (Department of Defense)
View all Northrop Grumman Information Technology Inc federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)