DHS awards $30M TME&I support services task order to Northrop Grumman, raising questions on value and competition

Contract Overview

Contract Amount: $30,079,615 ($30.1M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2018-03-04

End Date: 2020-12-19

Contract Duration: 1,021 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TASK ORDER 008 THREAT MITIGATION, ENGINEERING, AND IMAGING (TME&I) SUPPORT SERVICES

Place of Performance

Location: EGG HARBOR TOWNSHIP, ATLANTIC County, NEW JERSEY, 08234

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TASK ORDER 008 THREAT MITIGATION, ENGINEERING, AND IMAGING (TME&I) SUPPORT SERVICES Key points: 1. Significant contract value of $30M for specialized support services. 2. Northrop Grumman, a large defense contractor, secured the award. 3. Potential concerns regarding the effectiveness of competition and taxpayer value. 4. The contract falls under Educational Support Services, with a NAICS code of 611710.

Value Assessment

Rating: questionable

The contract value of $30M for TME&I support services appears high given the NAICS code and the nature of the services. Benchmarking against similar contracts is difficult without more detailed service descriptions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive. However, the specific details of the bidding process and the number of bidders are not provided, making it difficult to assess the true price discovery.

Taxpayer Impact: The effectiveness of taxpayer funds is questionable without a clear demonstration of competitive pricing and value for money.

Public Impact

Taxpayers may not be receiving optimal value for $30M spent on specialized support services. The award to a single large contractor could limit opportunities for smaller, innovative firms. Lack of transparency on performance metrics makes it hard to assess the impact of these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Transportation Security Administration (TSA) operates within the broader Department of Homeland Security. Spending on support services like TME&I is common, but the specific value and competitive nature of this $30M award warrant scrutiny.

Small Business Impact

The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication that small businesses were involved as subcontractors or prime contractors in this specific task order.

Oversight & Accountability

Oversight is crucial for Time and Materials contracts to prevent cost creep. The TSA's internal controls and reporting mechanisms for this task order need to be robust to ensure accountability.

Related Government Programs

Risk Flags

Tags

educational-support-services, department-of-homeland-security, nj, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TASK ORDER 008 THREAT MITIGATION, ENGINEERING, AND IMAGING (TME&I) SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $30.1 million.

What is the period of performance?

Start: 2018-03-04. End: 2020-12-19.

What specific threat mitigation, engineering, and imaging support services were provided, and how do they align with the TSA's mission?

The provided data lacks specific details on the services rendered under Task Order 008. While the NAICS code is 611710 (Educational Support Services), the task order title suggests a more technical and security-oriented function. Clarification is needed to understand how these services directly contribute to the TSA's operational effectiveness and security mandates.

How effectively did the 'full and open competition' process ensure competitive pricing for this $30M contract?

While the award states 'full and open competition,' the absence of data on the number of bids received and the final negotiated price relative to initial proposals makes it difficult to assess its effectiveness. Without this information, it's hard to determine if taxpayers received the best possible value or if the competition truly drove down costs.

What are the key performance indicators (KPIs) for this task order, and how has Northrop Grumman performed against them?

The provided data does not include any Key Performance Indicators (KPIs) or performance reports for this task order. Understanding the specific metrics used to evaluate the contractor's success and the actual performance outcomes is essential for assessing the overall effectiveness and value of the $30M investment.

Industry Classification

NAICS: Educational ServicesEducational Support ServicesEducational Support Services

Product/Service Code: EDUCATION AND TRAININGEDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

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: $54,416,531

Exercised Options: $30,393,502

Current Obligation: $30,079,615

Subaward Activity

Number of Subawards: 61

Total Subaward Amount: $46,944,232

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0715DTWE204

IDV Type: IDC

Timeline

Start Date: 2018-03-04

Current End Date: 2020-12-19

Potential End Date: 2020-12-19 12:00:00

Last Modified: 2025-09-05

More Contracts from Northrop Grumman Systems Corporation

View all Northrop Grumman Systems Corporation federal contracts →

Other Department of Homeland Security Contracts

View all Department of Homeland Security contracts →

Explore Related Government Spending