DoD Awards Northrop Grumman $16.4M for Strategic Planning & Program Management Support
Contract Overview
Contract Amount: $16,436,941 ($16.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-04-16
End Date: 2026-03-15
Contract Duration: 698 days
Daily Burn Rate: $23.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: STRATEGIC PLANNING, BUSINESS ANALYSIS, & PROGRAM MANAGEMENT SUPPORT II
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $16.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: STRATEGIC PLANNING, BUSINESS ANALYSIS, & PROGRAM MANAGEMENT SUPPORT II Key points: 1. Contract awarded to a large, established defense contractor. 2. Focus on strategic planning and program management indicates critical support functions. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. The Engineering Services sector is vital for complex defense initiatives.
Value Assessment
Rating: good
The $16.4M award for a 698-day duration appears reasonable for specialized strategic planning and program management support. Benchmarking against similar large-scale defense support contracts would provide further context on value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing and identify the most capable offeror.
Taxpayer Impact: Competition in this award is positive for taxpayers, as it aims to secure the best value. However, the Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain controlled.
Public Impact
Supports critical Air Force strategic planning and program execution. Ensures continuity of essential business analysis and management services. Impacts the efficiency and effectiveness of defense program delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long duration (698 days) increases exposure to potential scope creep or market changes.
Positive Signals
- Awarded under full and open competition.
- Supports critical strategic and program management functions for the Air Force.
Sector Analysis
This contract falls within Engineering Services, a sector crucial for the Department of Defense's complex technological and operational requirements. Spending in this area often reflects the need for specialized expertise in planning and managing large-scale projects.
Small Business Impact
The awardee is a large business, Northrop Grumman Systems Corporation. There is no indication of small business participation in this specific delivery order, which is common for large, complex prime contracts.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust financial monitoring and performance management to ensure accountability and prevent cost overruns.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Potential for cost overruns.
- Long contract duration.
- Reliance on a single large contractor.
Tags
engineering-services, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. STRATEGIC PLANNING, BUSINESS ANALYSIS, & PROGRAM MANAGEMENT SUPPORT II
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 Air Force).
What is the total obligated amount?
The obligated amount is $16.4 million.
What is the period of performance?
Start: 2024-04-16. End: 2026-03-15.
What specific strategic planning and program management functions will Northrop Grumman perform, and how do these align with current Air Force priorities?
The contract likely encompasses a range of activities including strategic analysis, business process improvement, program roadmap development, risk assessment, and performance metric tracking. These functions are crucial for ensuring the Air Force's strategic objectives are met efficiently and effectively, particularly in areas of modernization and operational readiness.
What are the key performance indicators (KPIs) and reporting requirements to mitigate risks associated with the Cost Plus Fixed Fee structure?
Key performance indicators would likely focus on timely delivery of strategic documents, successful program milestone achievement, adherence to budget targets (within the fixed fee constraints), and quality of analysis. Robust reporting requirements would mandate regular updates on progress, expenditures, identified risks, and proposed mitigation strategies to ensure transparency and control.
How will the effectiveness of this support contract be measured in terms of improving Air Force program outcomes?
Effectiveness will be measured by the tangible improvements in program execution, such as reduced timelines, cost savings achieved through better planning, enhanced decision-making based on provided analysis, and successful achievement of program goals. Feedback from Air Force program managers and the ultimate success of the programs supported will be critical indicators.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,693,545
Exercised Options: $17,531,607
Current Obligation: $16,436,941
Actual Outlays: $1,500,735
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $2,624,481
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU125
IDV Type: IDC
Timeline
Start Date: 2024-04-16
Current End Date: 2026-03-15
Potential End Date: 2029-09-15 00:00:00
Last Modified: 2026-01-05
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