DOT's FAA awarded Northrop Grumman $36.35M for ATB-200 Systems Engineering, spanning over 5 years

Contract Overview

Contract Amount: $36,354,382 ($36.4M)

Contractor: Northrop Grumman Space & Mission Systems Corp.

Awarding Agency: Department of Transportation

Start Date: 2004-03-25

End Date: 2009-04-29

Contract Duration: 1,861 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ESTABLISH ATB-200 SYSTEMS ENGINEERING TASK - ATTENTION ANNE MARIE TERNAY

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $36.4 million to NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP. for work described as: ESTABLISH ATB-200 SYSTEMS ENGINEERING TASK - ATTENTION ANNE MARIE TERNAY Key points: 1. Contract value represents a significant investment in air traffic modernization. 2. Competition dynamics suggest a potentially competitive bidding process for this specialized service. 3. Performance duration indicates a long-term need for sustained engineering support. 4. The contract falls within engineering services, a critical sector for infrastructure. 5. Geographic focus on Virginia highlights regional operational needs. 6. The award type suggests a standard procurement process was followed.

Value Assessment

Rating: fair

The contract value of $36.35 million over approximately five years for systems engineering services appears within a reasonable range for complex, long-term projects in the aviation sector. Benchmarking against similar large-scale engineering support contracts for federal agencies would provide a more precise assessment of value for money. The time and materials pricing structure, while common, necessitates careful oversight to ensure costs remain controlled and aligned with project milestones.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of three bidders suggests a moderate level of competition for this specialized engineering service. While not a highly contested bid, it implies that the FAA sought to leverage market capabilities and achieve competitive pricing through a formal procurement process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions, potentially leading to cost savings and higher quality services.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving critical systems engineering support. Services delivered are essential for the modernization and maintenance of air traffic control systems, specifically the ATB-200. The geographic impact is primarily within Virginia, where the contractor will likely perform services. Workforce implications include the employment of specialized systems engineers and technical staff by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the time and materials pricing model if not closely managed.
Risk of scope creep if project requirements are not clearly defined and controlled throughout the contract duration.
Dependency on a single contractor for critical systems engineering expertise over an extended period.

Positive Signals

Awarded through full and open competition, suggesting a structured and fair procurement process.
Long contract duration (over 5 years) allows for sustained focus and development of specialized knowledge.
Contractor's involvement in systems engineering for critical infrastructure indicates established capabilities.

Sector Analysis

This contract falls within the Engineering Services sector, a vital component of the broader aerospace and defense industry. The market for specialized systems engineering, particularly for government agencies like the FAA, is characterized by high barriers to entry due to technical expertise requirements and security clearances. Spending in this area is often driven by the need to maintain and upgrade complex, mission-critical infrastructure, with contracts typically being long-term and high-value.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor is a large corporation. There is no explicit information regarding subcontracting plans for small businesses. The focus on a large, established prime contractor suggests that opportunities for small businesses may be limited to specific subcontracting roles, if any, rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration's contracting officers and program managers. Accountability measures would be tied to contract performance metrics, delivery schedules, and adherence to technical specifications. Transparency is generally maintained through contract award databases and reporting requirements, though detailed operational oversight specifics are not publicly available.

Related Government Programs

Air Traffic Control Modernization Programs
FAA Systems Engineering Support Contracts
Aerospace Engineering Services
Department of Transportation IT and Infrastructure Contracts

Risk Flags

Potential for cost overruns due to T&M pricing structure.
Long contract duration may lead to vendor lock-in.
Need for robust oversight to manage scope and ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $36.4 million to NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP.. ESTABLISH ATB-200 SYSTEMS ENGINEERING TASK - ATTENTION ANNE MARIE TERNAY

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $36.4 million.

What is the period of performance?

Start: 2004-03-25. End: 2009-04-29.

What is the specific nature of the ATB-200 systems being engineered, and what is their role in the broader air traffic control system?

The ATB-200 likely refers to a specific component or system within the Federal Aviation Administration's (FAA) air traffic control infrastructure. While the exact technical specifications are not detailed in the provided data, systems engineering tasks typically involve the design, integration, testing, and maintenance of complex technological systems. For the ATB-200, this could encompass hardware, software, and communication elements crucial for managing airspace, guiding aircraft, and ensuring flight safety. Its role would be to contribute to the overall efficiency, reliability, and modernization of the National Airspace System (NAS), potentially involving aspects of surveillance, communication, navigation, or automation.

How does the $36.35 million contract value compare to other FAA systems engineering contracts awarded around the same period?

Without access to a comprehensive database of FAA contracts from the early 2000s, a direct comparison is challenging. However, $36.35 million over five years represents an average annual value of approximately $7.27 million. This figure is substantial and indicative of a significant project requiring specialized expertise. Larger FAA modernization efforts, such as NextGen initiatives, have historically involved multi-billion dollar investments. Therefore, this contract, while significant, likely represents a component or a specific phase of a larger program rather than the entirety of major modernization efforts. Its value should be assessed relative to the scope and complexity of the ATB-200 systems engineering tasks.

What are the key performance indicators (KPIs) or deliverables expected under this contract, and how was performance measured?

The provided data does not specify the key performance indicators (KPIs) or deliverables for this contract. However, typical systems engineering contracts require the delivery of design documents, technical specifications, integration plans, test reports, and potentially operational system components. Performance measurement would likely involve adherence to schedules, quality of deliverables, technical performance metrics (e.g., system reliability, accuracy), and effective management of resources. The FAA contracting officer and technical representatives would be responsible for monitoring progress against milestones and accepting deliverables based on predefined criteria outlined in the contract's Statement of Work (SOW).

What is Northrop Grumman's track record in providing systems engineering services to the FAA or similar government agencies?

Northrop Grumman is a major defense contractor with extensive experience in aerospace, defense, and government systems integration. They have a long history of providing complex engineering, technology, and support services to various U.S. government agencies, including the Department of Defense and NASA, as well as the FAA. Their portfolio often includes large-scale system design, development, and sustainment projects. While specific details of their past performance on FAA ATB-200 related projects are not in this dataset, their general profile suggests they possess the requisite capabilities and experience for such a contract.

Given the 5-year duration and time-and-materials (T&M) pricing, what are the primary risks associated with cost control and budget adherence?

The primary risks associated with a 5-year Time and Materials (T&M) contract for systems engineering revolve around cost control and budget adherence. T&M contracts pay the contractor for the actual labor hours and material costs incurred. This structure can lead to budget overruns if the scope of work is not tightly defined and managed, or if the project experiences unforeseen complexities requiring more labor than initially estimated. Scope creep, where additional requirements are added without a corresponding increase in budget or time, is a significant risk. Furthermore, ensuring the efficiency of the labor hours billed and the reasonableness of material costs requires diligent oversight from the government's contracting officer's representative (COR) to prevent inflated billing and ensure value for taxpayer money.

What is the significance of the 'Engineering Services' (NAICS 541330) classification for this contract?

The NAICS code 541330, 'Engineering Services,' signifies that the primary purpose of this contract is to procure professional engineering expertise. This classification covers firms that provide architectural, engineering, and related services. For this specific contract, it indicates that the work involves the application of engineering principles to design, develop, analyze, and manage complex systems, such as those used in air traffic control. Companies classified under this code typically employ licensed engineers and possess specialized knowledge in areas like systems design, structural analysis, electrical engineering, and software development, all crucial for projects like the ATB-200 systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

Address: 862 E HOSPITALITY LN, SAN BERNARDINO, CA, 33

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $36,354,382

Exercised Options: $36,354,382

Current Obligation: $36,354,382

Parent Contract

Parent Award PIID: DTFACT03D00022

IDV Type: IDC

Timeline