DoD Awards $20.4M Engineering Services Task Order to Northrop Grumman Under Sole-Source Justification
Contract Overview
Contract Amount: $20,426,137 ($20.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-04-01
End Date: 2026-03-31
Contract Duration: 364 days
Daily Burn Rate: $56.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PBL FOLLOW-ON TASK ORDER OTHER THAN FULL AND OPEN COMPETITION (FAR 6.301(B))EXCEPTION TO FULL AND OPEN COMPETITION: ONLY ONE RESPONSIBLE SOURCE AND NO OTHER SUPPLIES OR SERVICES WILL SATISFY AGENCY REQUIREMENTS (10 U.S.C. 3204(A)(1))
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $20.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: PBL FOLLOW-ON TASK ORDER OTHER THAN FULL AND OPEN COMPETITION (FAR 6.301(B))EXCEPTION TO FULL AND OPEN COMPETITION: ONLY ONE RESPONSIBLE SOURCE AND NO OTHER SUPPLIES OR SERVICES WILL SATISFY AGENCY REQUIREMENTS (10 U.S.C. 3204(A)(1)) Key points: 1. Significant contract value awarded to a single large business prime. 2. Sole-source award raises questions about competition and potential price overruns. 3. Engineering services are critical but require careful oversight to ensure value. 4. The IT sector often sees sole-source awards, but this is for engineering.
Value Assessment
Rating: questionable
The contract is a follow-on task order awarded on a firm-fixed-price basis. Without competitive bidding, it's difficult to assess if the $20.4 million price is optimal compared to similar engineering services contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This award was made using the 'only one responsible source' exception to full and open competition. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a $20.4 million contract could result in taxpayer funds being spent inefficiently.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The sole-source nature of the award warrants close scrutiny of performance and costs. Follow-on contracts can sometimes indicate a lack of market research or planning. The Department of Defense continues to award significant contracts without full and open competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source justification
- Lack of competition
- No small business participation indicated
Positive Signals
- Firm-fixed-price contract type
- Follow-on nature may indicate successful past performance
Sector Analysis
This contract falls under Engineering Services, a broad category often associated with defense and aerospace. While specific benchmarks for this exact service are hard to pinpoint, large sole-source engineering contracts warrant scrutiny for cost-effectiveness.
Small Business Impact
The data indicates no small business participation in this specific task order. Given the sole-source nature and the prime contractor, opportunities for small businesses to participate as subcontractors may have been overlooked.
Oversight & Accountability
The use of a sole-source justification requires robust internal review and documentation to ensure it is truly the only viable option. Post-award oversight should focus on verifying necessity and cost reasonableness.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- No indication of small business participation.
- Follow-on nature may mask underlying issues.
- High contract value awarded without competitive vetting.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. PBL FOLLOW-ON TASK ORDER OTHER THAN FULL AND OPEN COMPETITION (FAR 6.301(B))EXCEPTION TO FULL AND OPEN COMPETITION: ONLY ONE RESPONSIBLE SOURCE AND NO OTHER SUPPLIES OR SERVICES WILL SATISFY AGENCY REQUIREMENTS (10 U.S.C. 3204(A)(1))
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 $20.4 million.
What is the period of performance?
Start: 2025-04-01. End: 2026-03-31.
What specific technical or programmatic reasons necessitate Northrop Grumman as the sole source for these engineering services, and have alternatives been thoroughly explored?
The justification cites FAR 6.301(b) and 10 U.S.C. 3204(a)(1), indicating a belief that only one responsible source can satisfy the agency's needs. A thorough review would detail the unique capabilities, proprietary data, or critical integration requirements that preclude other potential offerors. Without this detailed justification, it's difficult to assess the validity of the sole-source claim and whether market research was adequate.
How will the Department of Defense ensure cost-effectiveness and prevent potential overpricing given the absence of a competitive bidding process for this $20.4 million award?
Despite the firm-fixed-price structure, the lack of competition means the government relies heavily on Northrop Grumman's proposed pricing. Robust oversight is crucial, including detailed cost analysis of the contractor's proposal, benchmarking against similar services if possible, and close monitoring of contract performance to identify any inefficiencies or scope creep that could inflate costs beyond reasonable expectations.
What is the long-term strategy to foster competition for similar engineering services to avoid recurring sole-source awards and ensure better value for taxpayer dollars?
The agency should conduct market research to identify potential sources for future requirements and consider strategies like breaking down large requirements into smaller, more competitive lots. Developing clear technical requirements and fostering industry partnerships can also encourage new entrants. Proactive planning and a commitment to exploring all viable acquisition strategies are key to mitigating sole-source awards.
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: FIRM FIXED PRICE (J)
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: $93,975,530
Exercised Options: $20,426,137
Current Obligation: $20,426,137
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $2,271,617
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU325
IDV Type: IDC
Timeline
Start Date: 2025-04-01
Current End Date: 2026-03-31
Potential End Date: 2029-09-30 00:00:00
Last Modified: 2025-09-30
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