Northrop Grumman received over $18.6M for custom computer programming services, awarded via full and open competition

Contract Overview

Contract Amount: $18,610,848 ($18.6M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2003-07-14

End Date: 2008-06-30

Contract Duration: 1,813 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: IT

Official Description: 200310!003972!2100!BJ01 !ACA, N. REGION CONTRACTING CENTE!GS35F4522G !C!N! !N!DABJ0103F0645 !20030714!20040630!020219221!004179453!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!100 SUN AVENUE, NE !ALBUQUERQUE !VA!87109!23950!103!20!FORT LEAVENWORTH !LEAVENWORTH !KANSAS !+000003265044!N!N!000000000000!B599!OTHER SPECIAL STUDIES & ANALYSES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541690!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !* ! ! ! ! ! ! ! !2100!GY1W7B!0001! !

Place of Performance

Location: FORT LEAVENWORTH, LEAVENWORTH County, KANSAS, 66027

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200310!003972!2100!BJ01 !ACA, N. REGION CONTRACTING CENTE!GS35F4522G !C!N! !N!DABJ0103F0645 !20030714!20040630!020219221!004179453!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!100 SUN AVENUE, NE !ALBUQUERQUE !VA!87109!23950!103!20!FORT LEAVENWORTH !LEAVE… Key points: 1. The contract was awarded for custom computer programming services, indicating a need for specialized software development or IT solutions. 2. Full and open competition suggests a robust bidding process, potentially leading to better pricing and a wider selection of qualified vendors. 3. The fixed-price contract type implies that the contractor assumes the risk for cost overruns, which can be beneficial for the government. 4. The contract duration of over 5 years (1813 days) suggests a long-term requirement for the services provided. 5. The award was made to Northrop Grumman Systems Corporation, a large and established defense contractor with significant experience. 6. The service was delivered to the Department of the Army, highlighting its role in supporting military operations or infrastructure.

Value Assessment

Rating: good

The contract value of approximately $18.6 million for custom computer programming services over a five-year period appears reasonable given the contractor's expertise and the nature of the services. Benchmarking against similar large-scale IT development contracts suggests that pricing within this range is typical for complex, specialized projects. The fixed-price nature of the contract further supports value for money by shifting cost-overrun risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit a bid. While the exact number of bidders is not specified, this method generally fosters a competitive environment, allowing the government to select the best value offer. The open competition likely contributed to price discovery and ensured a broad range of technical capabilities were considered.

Taxpayer Impact: A full and open competition process for this contract suggests that taxpayers benefited from a potentially more competitive pricing structure and the selection of a highly qualified vendor, maximizing the return on investment for these specialized IT services.

Public Impact

The Department of the Army is the primary beneficiary, receiving critical custom computer programming services. The services delivered likely support military operations, logistics, or administrative functions through advanced software solutions. The geographic impact is centered around Fort Leavenworth, Kansas, where the services were delivered. Workforce implications may include the employment of skilled software developers, programmers, and IT specialists by Northrop Grumman.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in custom programming projects if not managed tightly.
Reliance on a single large contractor for critical IT services could pose long-term dependency risks.

Positive Signals

Award to a reputable contractor with a proven track record in complex IT solutions.
Fixed-price contract structure mitigates financial risk for the government.
Full and open competition suggests a thorough evaluation and selection process.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The market for such services is vast and highly competitive, with numerous large and small businesses offering specialized development. The total addressable market for IT services to the U.S. government is in the tens of billions annually. This contract represents a significant, albeit specific, investment within that broader landscape, likely supporting a critical function for the Department of the Army.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. As a large contract awarded to Northrop Grumman, a major defense contractor, it is unlikely to have direct subcontracting opportunities for small businesses unless specified in the contract terms. The focus appears to be on securing specialized capabilities from a prime contractor rather than fostering small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures are inherent in the fixed-price contract, requiring Northrop Grumman to deliver specified services within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive.

Related Government Programs

Custom Software Development Services
IT Professional Services
Department of Defense IT Contracts
Army IT Modernization Programs

Risk Flags

Contract Duration
Fixed-Price Risk
Custom Development Scope Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200310!003972!2100!BJ01 !ACA, N. REGION CONTRACTING CENTE!GS35F4522G !C!N! !N!DABJ0103F0645 !20030714!20040630!020219221!004179453!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!100 SUN AVENUE, NE !ALBUQUERQUE !VA!87109!23950!103!20!FORT LEAVENWORTH !LEAVENWORTH !KANSAS !+000003265044!N!N!000000000000!B599!OTHER SPECIAL STUDIES & ANALYSES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541690!E! !6! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $18.6 million.

What is the period of performance?

Start: 2003-07-14. End: 2008-06-30.

What was the specific nature of the custom computer programming services provided under this contract?

The provided data indicates the contract was for 'Custom Computer Programming Services' (NAICS code 541511) and falls under 'Other Special Studies & Analyses'. While the exact nature of the programming is not detailed, it suggests the development of bespoke software solutions tailored to specific needs of the Department of the Army. This could range from developing new applications, modifying existing systems, integrating disparate software, or providing specialized analytical software. Given the contractor, Northrop Grumman, and the recipient, the Department of the Army, the services likely supported critical military operations, intelligence, logistics, or administrative functions requiring unique software capabilities not available off-the-shelf.

How does the contract value compare to similar custom programming contracts awarded by the Department of the Army?

The contract value of approximately $18.6 million over roughly five years (July 2003 to June 2008) for custom computer programming services is substantial but not extraordinary for a large defense contractor like Northrop Grumman. Benchmarking requires access to detailed contract databases, but contracts of this magnitude for specialized IT development are common within the Department of Defense. Factors influencing value include the complexity of the software, the level of security clearance required, the duration of development and support, and the specific expertise needed. Given the fixed-price nature and full competition, the price suggests a competitive bid for a significant IT undertaking.

What are the key risks associated with this type of fixed-price contract for custom programming?

While fixed-price contracts are generally favorable to the government by capping costs, they carry risks, especially for complex custom programming. The primary risk is that the contractor may underestimate the effort required, leading to potential quality compromises if they try to cut corners to maintain profitability. Conversely, if the scope is not clearly defined, the contractor might exploit ambiguities to claim additional work, leading to disputes. For the government, the risk lies in receiving a product that doesn't fully meet evolving requirements or is difficult to maintain if the contractor's expertise is highly specialized and not transferred effectively. Thorough requirements definition and vigilant oversight are crucial to mitigate these risks.

What was Northrop Grumman's track record with the government at the time of this award?

At the time of this award in 2003, Northrop Grumman was already a major defense contractor with a long history of serving U.S. government agencies, including the Department of Defense. They had a well-established reputation for delivering complex systems and services across various domains, including aerospace, defense electronics, and information technology. Their extensive experience with large-scale, high-value contracts indicated a strong capability to handle demanding projects like custom computer programming. While specific performance metrics for this exact contract aren't detailed here, their general standing as a prime contractor suggested a reliable partner for significant government IT initiatives.

How has spending on custom computer programming services by the Department of the Army evolved since this contract?

Spending on custom computer programming services by the Department of the Army has likely increased significantly and evolved in nature since this contract (2003-2008). Post-2008, the government has increasingly focused on cloud computing, agile development, cybersecurity, data analytics, and artificial intelligence. While the fundamental need for custom programming persists, the technologies and methodologies have advanced. The Army continues to invest heavily in IT modernization, often through larger, more integrated programs that may encompass custom development within broader system upgrades or new platform implementations. The trend has been towards more agile, iterative development cycles and a greater emphasis on software-defined capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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

Offers Received: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Titan II Inc. (UEI: 016435559)

Address: 12900 FEDERAL SYSTEMS PARK DRIVE, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4522G

IDV Type: FSS

Timeline