Northrop Grumman received over $40.9M for technical support to DOE's Office of Counterintelligence
Contract Overview
Contract Amount: $40,989,426 ($41.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Energy
Start Date: 2005-09-30
End Date: 2009-04-07
Contract Duration: 1,285 days
Daily Burn Rate: $31.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: TECHNICAL SUPPORT SERVICES TO DOE'S OFFICE OF COUNTERINTELLIGENCE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $41.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TECHNICAL SUPPORT SERVICES TO DOE'S OFFICE OF COUNTERINTELLIGENCE Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Significant duration of over 3 years suggests a need for sustained support. 3. The contract type (Time and Materials) can pose cost control challenges. 4. Services provided are specialized, focusing on counterintelligence technical support. 5. The awardee has a substantial presence in the federal contracting space. 6. Geographic concentration in Washington D.C. may indicate specific operational needs.
Value Assessment
Rating: fair
Benchmarking the value for this specific technical support to counterintelligence is challenging due to its specialized nature and sole-source award. The Time and Materials contract type, while flexible, can lead to higher costs if not managed closely. Without competitive bids, it's difficult to definitively assess if the pricing represents optimal value for the government. The total award amount of over $40.9 million over its period of performance suggests a significant investment in these specialized services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the service. The lack of multiple bidders means that price discovery through competition was not leveraged, potentially leading to a higher price than if multiple firms had vied for the contract.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without alternative offers, the government relied on negotiation to establish a price, which may not reflect the most cost-effective solution available in the market.
Public Impact
The Department of Energy's Office of Counterintelligence benefits from specialized technical support. Services likely enhance the agency's ability to protect sensitive information and operations. The primary geographic impact is within Washington D.C., where the contract was administered. The contract supports a specialized technical workforce within Northrop Grumman.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Time and Materials contract type can lead to cost overruns if not managed stringently.
- Lack of transparency in the sole-source justification process.
Positive Signals
- Award to an established contractor with a known track record.
- Contract duration suggests a stable, ongoing need for critical services.
- Specialized nature of services indicates a focus on essential government functions.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically under 'All Other Professional, Scientific, and Technical Services.' This broad category encompasses a wide range of specialized expertise. The federal market for such services is substantial, with agencies frequently outsourcing complex technical and analytical functions. Comparable spending often involves support for intelligence, security, and research and development activities, where unique skill sets are paramount.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have significant subcontracting requirements for small businesses based on the provided data. The award to a large prime contractor like Northrop Grumman suggests that the primary focus was on specialized capabilities rather than fostering small business participation. This could limit opportunities for smaller firms to engage in this specific area of federal support.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. Given the sole-source nature and the sensitive area of counterintelligence, robust internal oversight and performance monitoring are crucial. Transparency regarding the justification for the sole-source award and the ongoing management of the Time and Materials contract would be key accountability measures. Inspector General involvement would depend on specific audit triggers or allegations of mismanagement.
Related Government Programs
- Department of Energy Counterintelligence Programs
- Federal Technical Support Services
- Professional and Technical Services Contracts
- Sole-Source Contract Awards
Risk Flags
- Sole-source award
- Time and Materials contract type
- Lack of competitive bidding
Tags
sector-other, agency-department-of-energy, geography-district-of-columbia, contract-type-time-and-materials, competition-level-sole-source, award-size-large, service-technical-support, service-counterintelligence, contractor-northrop-grumman
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $41.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TECHNICAL SUPPORT SERVICES TO DOE'S OFFICE OF COUNTERINTELLIGENCE
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $41.0 million.
What is the period of performance?
Start: 2005-09-30. End: 2009-04-07.
What specific technical services did Northrop Grumman provide under this contract?
The contract data indicates 'TECHNICAL SUPPORT SERVICES TO DOE'S OFFICE OF COUNTERINTELLIGENCE.' While the specific nature of 'technical support' in a counterintelligence context is not detailed, it likely encompasses a range of activities. These could include the development, implementation, and maintenance of technical systems used for intelligence gathering, analysis, and protection of sensitive information. This might involve cybersecurity measures, data analytics tools, secure communication systems, or specialized forensic capabilities. The 'All Other Professional, Scientific, and Technical Services' NAICS code (541990) further suggests a broad scope of specialized, non-classified professional services.
How does the Time and Materials (T&M) contract type compare to other contract types for similar services?
Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. Compared to fixed-price contracts, T&M offers flexibility but carries a higher risk of cost overruns for the government if not closely monitored. For specialized technical support, especially in evolving fields like counterintelligence, T&M can be advantageous for adapting to new threats or requirements. However, it necessitates stringent oversight to ensure labor hours and material costs are reasonable and directly related to the work performed. Other contract types, like Cost-Plus-Fixed-Fee (CPFF) or Firm-Fixed-Price (FFP), might offer better cost certainty but could be less adaptable to the dynamic nature of counterintelligence technical needs.
What are the potential risks associated with a sole-source award for critical technical support?
Sole-source awards, like the one to Northrop Grumman for DOE counterintelligence support, carry inherent risks. The primary risk is the lack of price competition, which can lead to the government paying a premium compared to what might be achieved in an open bidding process. This reduces the government's leverage in negotiating favorable terms and pricing. Furthermore, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single vendor, potentially stifling innovation from other capable companies. Without the pressure of competition, there might be less incentive for the incumbent contractor to aggressively pursue cost efficiencies or service improvements. Ensuring robust performance metrics and contract management becomes even more critical to mitigate these risks.
What is the historical spending pattern for technical support services within the DOE's Office of Counterintelligence?
Analyzing historical spending patterns for this specific contract requires access to broader federal procurement databases. However, the duration of this contract (from September 2005 to April 2009, with a base period and potential options) suggests a sustained requirement for technical support within the Office of Counterintelligence. Federal agencies, particularly those dealing with national security and sensitive information like the DOE, often have ongoing needs for specialized technical services. Spending in this area can fluctuate based on evolving threats, technological advancements, and agency priorities. Without specific historical data for this office, it's difficult to establish a precise trend, but the consistent need for such support is typical for intelligence and security functions.
How does Northrop Grumman's performance on this contract inform future sole-source awards?
Northrop Grumman's performance on this specific contract, while not detailed here, would be a critical factor in any future sole-source considerations. Agencies typically review past performance records when justifying sole-source awards, looking for evidence of successful delivery, adherence to schedule and budget, and overall customer satisfaction. If Northrop Grumman performed well, met requirements, and provided value, it strengthens the argument for their continued sole-source selection, especially if the need for their unique capabilities persists. Conversely, any performance issues could necessitate a more competitive procurement approach or a thorough review of the justification for continuing with a sole-source award. Documenting performance is key to ensuring accountability and informed decision-making for future procurements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 2340 DULLES CORNER BOULEVARD, HERNDON, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $45,556,947
Exercised Options: $45,556,947
Current Obligation: $40,989,426
Timeline
Start Date: 2005-09-30
Current End Date: 2009-04-07
Potential End Date: 2009-04-07 00:00:00
Last Modified: 2011-03-16
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