Dot's $264M Contract for Dafis UDO Reconstruct W/O Advance Awarded to Northrop Grumman
Contract Overview
Contract Amount: $263,901,026 ($263.9M)
Contractor: Northrop Grumman Space & Mission Systems Corp.
Awarding Agency: Department of Transportation
Start Date: 2003-10-11
End Date: 2016-09-21
Contract Duration: 4,729 days
Daily Burn Rate: $55.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DAFIS UDO RECONSTRUCT W/O ADVANCE
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of Transportation obligated $263.9 million to NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP. for work described as: DAFIS UDO RECONSTRUCT W/O ADVANCE Key points: 1. Significant investment in technical services, potentially impacting aviation data management. 2. Sole awardee suggests limited competition, raising questions about price discovery. 3. Long contract duration (4729 days) may indicate complex, ongoing needs. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, making direct sector comparison difficult.
Value Assessment
Rating: fair
The contract value of $263.9M over nearly 13 years is substantial. Without specific benchmarks for 'DAFIS UDO RECONSTRUCT W/O ADVANCE', it's difficult to definitively assess pricing against similar, highly specialized technical services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded as a definitive contract, the 'full and open competition' designation suggests an initial competitive process. However, the single award to Northrop Grumman implies they were the sole successful bidder or incumbent.
Taxpayer Impact: The large contract value represents a significant taxpayer investment in specialized technical services for the FAA.
Public Impact
Enhances critical aviation data reconstruction capabilities for the Federal Aviation Administration. Supports the modernization and maintenance of essential air traffic management systems. Potential for long-term reliance on Northrop Grumman for these specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes value assessment challenging.
- Long contract duration could lead to cost overruns if not managed effectively.
- Broad NAICS code limits precise benchmarking against competitors.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract provides cost certainty.
- Long duration may indicate successful, ongoing partnership.
Sector Analysis
This contract falls under professional, scientific, and technical services, specifically within the aviation sector's IT and data management domain. Benchmarking is challenging due to the specialized nature of the service, but large-scale IT modernization projects can range from tens to hundreds of millions.
Small Business Impact
The contract was not awarded to small businesses, indicating that the specialized nature of the services required large, established contractors. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The definitive contract award and long duration suggest a need for ongoing oversight to ensure performance, cost control, and adherence to the firm fixed price terms throughout the contract's life.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Potential for cost creep despite fixed price due to long duration.
- Limited competition may have resulted in a higher price than otherwise achievable.
- Broad NAICS code makes it difficult to assess true market competition.
- Lack of specific performance metrics hinders objective value assessment.
Tags
all-other-professional-scientific-and-te, department-of-transportation, ma, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $263.9 million to NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP.. DAFIS UDO RECONSTRUCT W/O ADVANCE
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 $263.9 million.
What is the period of performance?
Start: 2003-10-11. End: 2016-09-21.
What specific technical advancements or efficiencies are expected from the DAFIS UDO RECONSTRUCT W/O ADVANCE project?
The provided data does not detail the specific technical advancements or efficiencies expected from the DAFIS UDO RECONSTRUCT W/O ADVANCE project. Further analysis would require access to the contract's statement of work and performance metrics to understand the intended outcomes and how they contribute to the FAA's mission.
How does the $263.9M cost compare to similar data reconstruction projects within the federal government or aviation industry?
Benchmarking this $263.9M contract is difficult without more specific details on the 'DAFIS UDO RECONSTRUCT W/O ADVANCE' service. While the value is substantial, the unique nature of aviation data reconstruction and the long contract period (over 12 years) make direct comparisons to other federal or industry projects challenging.
What mechanisms are in place to ensure the effectiveness and value for money of this long-term contract with Northrop Grumman?
Effectiveness and value are typically ensured through contract clauses, performance metrics, and regular reviews. Given the firm fixed price and long duration, the FAA likely has established milestones and reporting requirements. However, the provided data lacks specifics on these oversight mechanisms.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 862 E HOSPITALITY LN, SAN BERNARDINO, CA, 92408
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,277,501,404
Exercised Options: $287,968,254
Current Obligation: $263,901,026
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Timeline
Start Date: 2003-10-11
Current End Date: 2016-09-21
Potential End Date: 2016-09-21 00:00:00
Last Modified: 2020-08-14
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