DOJ awards Northrop Grumman $93.8M for IT Security Support, spanning over 10 years
Contract Overview
Contract Amount: $93,800,773 ($93.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Justice
Start Date: 2011-11-16
End Date: 2022-03-31
Contract Duration: 3,788 days
Daily Burn Rate: $24.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: OTHER FUNCTION - IT SECURITY SUPPORT FOR JMD/INFORMATION TECHNOLOGY AND SECURITY STAFF
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $93.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: OTHER FUNCTION - IT SECURITY SUPPORT FOR JMD/INFORMATION TECHNOLOGY AND SECURITY STAFF Key points: 1. Significant contract value of $93.8M for IT security services. 2. Northrop Grumman is the sole awardee, raising questions about competition. 3. Long contract duration (over 10 years) may indicate evolving needs or limited market options. 4. Services fall under Computer Systems Design, a broad IT category.
Value Assessment
Rating: fair
The contract's Time and Materials (T&M) pricing structure can lead to cost overruns if not managed tightly. Benchmarking against similar T&M contracts for IT security support is difficult without detailed labor rates and hours.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded to a single contractor, the contract was initially competed full and open. The long duration and multiple delivery orders suggest potential for follow-on work or a stable, long-term requirement.
Taxpayer Impact: The substantial value indicates significant taxpayer investment in IT security for the Department of Justice.
Public Impact
Ensures critical IT security infrastructure for the Department of Justice. Supports the JMD/Information Technology and Security Staff's operational needs. Long-term engagement suggests a stable provider for essential security functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost creep with T&M pricing over a long duration.
- Lack of ongoing competition for subsequent delivery orders.
- Reliance on a single vendor for critical IT security functions.
Positive Signals
- Awarded through full and open competition initially.
- Provides essential IT security services to a major federal agency.
- Long-term contract may offer stability and predictable service delivery.
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending benchmarks for IT security support can vary widely based on agency size, complexity, and specific service requirements.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award, suggesting limited opportunities for small businesses in this particular contract.
Oversight & Accountability
The contract's long duration and multiple delivery orders warrant ongoing oversight to ensure cost-effectiveness and performance. Regular reviews of T&M expenditures and service delivery are crucial for accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Long contract duration may limit future competition.
- Reliance on a single vendor for critical security functions.
- Lack of transparency on specific labor rates and hours.
- Limited visibility into ongoing performance metrics and value realization.
Tags
computer-systems-design-services, department-of-justice, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $93.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. OTHER FUNCTION - IT SECURITY SUPPORT FOR JMD/INFORMATION TECHNOLOGY AND SECURITY STAFF
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $93.8 million.
What is the period of performance?
Start: 2011-11-16. End: 2022-03-31.
What is the average hourly rate for key personnel under this T&M contract, and how does it compare to industry benchmarks for similar IT security roles?
Determining the average hourly rate requires access to the specific delivery order details, including labor categories and rates. Without this granular data, a direct comparison to industry benchmarks is challenging. However, T&M contracts inherently carry a risk of higher costs if not meticulously managed and monitored against established market rates for comparable IT security expertise.
Given the full and open competition initially, what factors led to Northrop Grumman being the sole recipient of multiple subsequent delivery orders over a decade?
The initial full and open competition likely established Northrop Grumman as a capable provider. Subsequent sole-source or limited competition for delivery orders might be due to the specialized nature of the services, the need for continuity with an incumbent, or specific requirements that only Northrop Grumman could meet efficiently. This warrants scrutiny to ensure fair pricing and prevent vendor lock-in.
How has the effectiveness of Northrop Grumman's IT security support evolved over the contract's lifespan, and are there performance metrics demonstrating value for money?
Assessing effectiveness requires reviewing performance reports, security incident logs, and any established Key Performance Indicators (KPIs) tied to the contract. While the contract's longevity suggests satisfactory performance, concrete metrics demonstrating value for money, such as reduced security incidents or improved system resilience, would provide a clearer picture of its impact.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 6
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7575 COLSHIRE DR, MC LEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $93,800,773
Exercised Options: $93,800,773
Current Obligation: $93,800,773
Actual Outlays: $17,590,417
Subaward Activity
Number of Subawards: 426
Total Subaward Amount: $707,104,283
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DJJ11C2162
IDV Type: IDC
Timeline
Start Date: 2011-11-16
Current End Date: 2022-03-31
Potential End Date: 2022-03-31 00:00:00
Last Modified: 2025-07-25
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Justice Contracts
- Contractor Owned and Operated Existing Correctional Facility for Approximately 3,500 LOW Security Male Inmates — $794.5M (Cornell Companies, Inc.)
- Detention Services - SAN Diego — $776.9M (THE GEO Group, Inc.)
- CO: Telly Renfroe Award of NEW Task Order Base Year Initial Funding — $616.4M (AT&T Enterprises, LLC)
- TAS 151060 - Services for the Management and Operation of a Contractor-Owned, Contractor-Operated, Correctional Facility for 2,567 Beds in Adams County, Mississippi — $574.3M (Corecivic, Inc.)
- Provide Services for the Management and Operation of a Correctional Facility in Accordance With Rfp-Pcc-0014 — $568.9M (Cornell Companies, Inc.)