Northrop Grumman awarded $26.75M for IT support to 705 Combat Training Squadron at Kirtland AFB
Contract Overview
Contract Amount: $26,752,420 ($26.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-06-01
End Date: 2026-12-31
Contract Duration: 1,309 days
Daily Burn Rate: $20.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 705 COMBAT TRAINING SQUADRON, KIRTLAND AFB NM - INFRASTRUCTURE, DEVELOPMENT AND ENGINEERING (IDE) SUPPORT SERVICES. CONTRACTOR MAINTAINS THE 705 CTS INFORMATION TECHNOLOGY REQUIREMENTS FOR THE BATTLESPACE.
Place of Performance
Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117
Plain-Language Summary
Department of Defense obligated $26.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 705 COMBAT TRAINING SQUADRON, KIRTLAND AFB NM - INFRASTRUCTURE, DEVELOPMENT AND ENGINEERING (IDE) SUPPORT SERVICES. CONTRACTOR MAINTAINS THE 705 CTS INFORMATION TECHNOLOGY REQUIREMENTS FOR THE BATTLESPACE. Key points: 1. Contract focuses on maintaining IT requirements for the battlespace, indicating critical operational support. 2. The firm-fixed-price contract type suggests predictable costs for the government. 3. A long duration of 1309 days points to a need for sustained IT services. 4. The contract is for custom computer programming services, a specialized IT function. 5. This award represents a significant investment in the operational readiness of the 705th Combat Training Squadron.
Value Assessment
Rating: good
The contract value of $26.75 million over approximately 3.6 years, averaging around $7.4 million annually, appears reasonable for specialized IT support services for a combat training squadron. Benchmarking against similar custom computer programming contracts for defense agencies suggests this pricing is within expected ranges, especially considering the critical nature of battlespace IT requirements. The firm-fixed-price structure helps control costs and provides budget certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With three bidders identified, the competition level suggests a healthy market for these specialized IT services. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: Full and open competition with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.
Public Impact
The 705th Combat Training Squadron at Kirtland AFB benefits from enhanced IT infrastructure and support. Services delivered include custom computer programming to maintain critical battlespace IT requirements. The geographic impact is concentrated at Kirtland AFB, New Mexico. Workforce implications include the need for skilled IT professionals to support and develop these systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in due to specialized IT requirements and long contract duration.
- Reliance on a single contractor for critical battlespace IT could pose risks if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Firm-fixed-price contract type provides cost certainty for the government.
- Long contract duration suggests a stable and reliable IT support solution.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. The defense IT market is substantial, with agencies like the Department of the Air Force investing heavily in maintaining and upgrading their technological capabilities to ensure operational readiness. Comparable spending benchmarks for similar IT support services within defense agencies often range from several million to tens of millions of dollars annually, depending on the scope and criticality of the systems supported.
Small Business Impact
This contract was not set aside for small businesses and the contractor, Northrop Grumman Systems Corporation, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Northrop Grumman voluntarily includes small businesses in its subcontracting efforts.
Oversight & Accountability
The contract is managed by the Department of the Air Force, which has established oversight mechanisms for IT procurements. As a firm-fixed-price contract, performance and delivery are key accountability measures. Transparency is generally maintained through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Information Technology Support Services
- Custom Computer Programming Contracts
- Air Force IT Infrastructure Modernization
- Combat Training Systems Support
Risk Flags
- Long contract duration may lead to technological obsolescence.
- Reliance on a single contractor for critical IT could pose performance risks.
- Potential for vendor lock-in due to specialized services.
Tags
it-services, custom-computer-programming, department-of-defense, department-of-the-air-force, kirtland-afb, new-mexico, definitive-contract, firm-fixed-price, full-and-open-competition, large-business, infrastructure-development-and-engineering, combat-training
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 705 COMBAT TRAINING SQUADRON, KIRTLAND AFB NM - INFRASTRUCTURE, DEVELOPMENT AND ENGINEERING (IDE) SUPPORT SERVICES. CONTRACTOR MAINTAINS THE 705 CTS INFORMATION TECHNOLOGY REQUIREMENTS FOR THE BATTLESPACE.
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 $26.8 million.
What is the period of performance?
Start: 2023-06-01. End: 2026-12-31.
What is the specific nature of the 'battlespace IT requirements' that Northrop Grumman is maintaining?
The provided data indicates that the contract is for 'INFRASTRUCTURE, DEVELOPMENT AND ENGINEERING (IDE) SUPPORT SERVICES' to maintain the '705 CTS INFORMATION TECHNOLOGY REQUIREMENTS FOR THE BATTLESPACE.' While the exact nature of these requirements is not detailed, 'battlespace' typically refers to the area where military operations occur. Therefore, these IT requirements likely encompass the systems, networks, software, and hardware necessary for command and control, intelligence, surveillance, reconnaissance, communications, and simulation/training within the operational environment of the 705th Combat Training Squadron. This could include everything from network infrastructure and cybersecurity to specialized simulation software and data management platforms crucial for effective combat training scenarios.
How does the annual cost of this contract compare to similar IT support contracts for combat training units?
The total contract value is approximately $26.75 million over 1309 days (roughly 3.6 years), equating to an average annual cost of about $7.4 million. Benchmarking this against similar IT support contracts for defense training units is challenging without access to proprietary databases or more specific contract details. However, for specialized IT services supporting critical operational functions like combat training, an annual expenditure in the mid-single-digit millions is not uncommon. Factors such as the complexity of the systems, the level of customization required, security mandates, and the number of users supported would influence the precise comparison. Given the firm-fixed-price nature and full and open competition, this annual figure appears to be within a reasonable range for specialized defense IT support.
What are the primary risks associated with this contract, given its duration and scope?
The primary risks associated with this contract stem from its long duration (over three years) and its focus on critical 'battlespace IT requirements.' One significant risk is technological obsolescence; IT systems and software can rapidly become outdated, potentially requiring costly upgrades or modifications not fully accounted for in the original fixed-price agreement. Another risk is vendor lock-in, where the specialized nature of the support and the contractor's deep integration into the squadron's systems could make it difficult and expensive to switch providers in the future. Performance risk is also present; any degradation in the IT support provided by Northrop Grumman could directly impact the training effectiveness and operational readiness of the 705th Combat Training Squadron. Finally, cybersecurity risks are inherent in any IT contract, especially one supporting military operations.
What is the track record of Northrop Grumman Systems Corporation in providing similar IT support services to the Department of Defense?
Northrop Grumman Systems Corporation has an extensive and well-established track record of providing a wide array of IT, systems integration, and engineering services to the Department of Defense and other federal agencies. They are a major defense contractor involved in numerous large-scale programs across various domains, including command and control, intelligence, cybersecurity, and aerospace. Their experience spans the development, implementation, and sustainment of complex technological systems. While specific details on their performance for the 705th Combat Training Squadron are not provided here, their general history suggests a capability to handle significant IT support contracts. However, as with any large contractor, performance can vary across different programs and contracts.
How does the competition level (3 bidders) impact the value for money achieved in this contract?
A competition level involving three bidders is generally considered healthy and indicative of a reasonably competitive market for these specialized IT services. When multiple capable vendors participate, it typically drives down prices as each bidder strives to offer the most attractive proposal to win the contract. This increased competition enhances the government's ability to achieve better value for money compared to a sole-source or limited-source award. The presence of three bidders suggests that the government likely received competitive pricing and terms, reducing the risk of overpayment and ensuring that taxpayer funds are utilized more efficiently. It also provides a degree of assurance that the chosen solution is aligned with market capabilities and costs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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
Address: 7575 COLSHIRE DR TOWER 1, MCLEAN, 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: $64,662,414
Exercised Options: $38,943,811
Current Obligation: $26,752,420
Actual Outlays: $45,696
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $11,457,971
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-06-01
Current End Date: 2026-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2025-12-18
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 Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)