DoD's Cyber Mission Platform contract awarded to Northrop Grumman for $69.4M over three years

Contract Overview

Contract Amount: $69,376,343 ($69.4M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2017-04-12

End Date: 2020-04-11

Contract Duration: 1,095 days

Daily Burn Rate: $63.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CYBER MISSION PLATFORM (CMP)

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $69.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CYBER MISSION PLATFORM (CMP) Key points: 1. The contract value represents a significant investment in cyber defense capabilities. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and innovation. 3. Performance context suggests a focus on advanced computer systems design services. 4. Sector positioning highlights the critical role of IT services in national security. 5. Risk indicators may include the complexity of cyber systems and evolving threat landscapes.

Value Assessment

Rating: good

The total award of $69.4 million over three years for the Cyber Mission Platform (CMP) appears reasonable given the specialized nature of cyber defense systems. Benchmarking against similar large-scale IT development contracts within the Department of Defense suggests that the pricing is within an expected range for complex system design and integration. The contract type, 'LABOR HOURS', indicates a flexible approach to resource allocation, which can be cost-effective if managed efficiently. However, a detailed cost breakdown would be necessary for a more precise value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 5 bidders suggests a healthy level of competition for this significant cyber defense contract. This broad competition is generally expected to drive more competitive pricing and encourage innovative solutions from the participating companies. The outcome of such a competitive process is typically favorable for the government in terms of securing the best value.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of advanced technological solutions. This process ensures that the government is not limited to a single provider, fostering a more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, enhancing their cyber warfare and defense capabilities. The services delivered include the design, development, and integration of advanced computer systems for cyber missions. The geographic impact is likely national, supporting DoD operations across various global locations. Workforce implications include the employment of highly skilled cybersecurity professionals, software engineers, and systems integrators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Complexity of cyber systems requires continuous updates and adaptation to evolving threats.
Potential for cost overruns if project scope expands beyond initial estimates.
Dependence on a single contractor for critical cyber infrastructure could pose long-term risks.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Contract duration of three years allows for sustained development and integration.
Northrop Grumman's established presence in defense contracting suggests technical expertise.

Sector Analysis

The IT services sector, particularly within defense, is characterized by rapid technological advancement and high demand for specialized solutions. The Cyber Mission Platform (CMP) contract falls under computer systems design services, a segment focused on creating and integrating complex IT infrastructures. The market for cyber defense solutions is substantial, driven by increasing global cyber threats. This contract represents a significant investment by the Department of Defense to maintain a technological edge in cyberspace, aligning with broader government initiatives to bolster national security through advanced IT capabilities.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. The primary awardee is a large defense contractor. While large contracts can sometimes trickle down to small businesses through subcontracting opportunities, the absence of specific set-aside provisions means direct benefits to the small business ecosystem are not guaranteed. Further analysis of subcontracting plans would be needed to assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force, with potential involvement from the Department of Defense's Inspector General for audits and investigations. Accountability measures are usually embedded within the contract's performance work statement, including milestones, deliverables, and quality standards. Transparency is facilitated through contract award databases and reporting requirements, though detailed operational specifics are often classified due to national security implications.

Related Government Programs

Cybersecurity Services
Information Technology Support Services
Defense Systems Development
Computer Systems Design

Risk Flags

Potential for scope creep due to 'LABOR HOURS' contract type.
Complexity of cyber systems may lead to integration challenges.
Evolving threat landscape requires continuous adaptation and investment.
Dependence on a single platform for critical cyber missions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CYBER MISSION PLATFORM (CMP)

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 $69.4 million.

What is the period of performance?

Start: 2017-04-12. End: 2020-04-11.

What is Northrop Grumman's track record with similar large-scale cyber defense contracts?

Northrop Grumman has a long and extensive history of developing and integrating complex systems for the Department of Defense and other government agencies. They have been involved in numerous large-scale projects related to command and control, intelligence, surveillance, and reconnaissance (ISR), and cybersecurity. For instance, they have been a key contractor for the B-2 bomber program, the James Webb Space Telescope, and various missile defense systems. Their experience in developing sophisticated software and hardware solutions, coupled with their deep understanding of military operational requirements, positions them as a capable provider for the Cyber Mission Platform. However, like any large contractor, they have faced scrutiny on specific projects regarding cost and performance, necessitating robust oversight.

How does the $69.4 million award compare to other cyber defense platform contracts?

The $69.4 million award for the Cyber Mission Platform (CMP) over three years represents a substantial investment, averaging approximately $23.1 million per year. When compared to other large-scale cyber defense and IT modernization programs within the DoD, this figure appears to be within a reasonable range, particularly for a platform designed for advanced cyber operations. For example, other multi-year contracts for developing secure networks, advanced threat detection systems, or integrated cyber command centers can range from tens of millions to hundreds of millions of dollars annually, depending on scope and complexity. The specific nature of the CMP, focusing on 'Computer Systems Design Services,' suggests a significant emphasis on software development and system integration, which can be resource-intensive. Without direct comparisons of identical platforms, this award seems commensurate with the specialized and critical nature of cyber defense capabilities.

What are the primary risks associated with the development and implementation of the Cyber Mission Platform?

The primary risks associated with the Cyber Mission Platform (CMP) are multifaceted. Technologically, the rapid evolution of cyber threats necessitates continuous adaptation and upgrades, posing a risk of obsolescence or insufficient capability against emerging adversaries. Programmatically, the complexity of integrating advanced cyber capabilities can lead to schedule delays and cost overruns, especially given the 'LABOR HOURS' contract type which can be susceptible to scope creep if not tightly managed. Operationally, reliance on a single platform for critical cyber missions introduces a single point of failure risk. Furthermore, the sensitive nature of cyber operations means that security vulnerabilities within the platform itself could have severe national security implications. Effective risk mitigation will depend on rigorous testing, agile development methodologies, strong program management, and robust cybersecurity protocols.

How effective is the 'full and open competition' approach in ensuring value for taxpayer money in this contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for taxpayer money in federal contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best prices and most innovative solutions to win the contract. In the case of the Cyber Mission Platform (CMP), the participation of five bidders suggests a robust competition that likely drove down costs and improved the quality of proposals. This process helps prevent monopolies, reduces the risk of overpaying for goods or services, and increases transparency. While oversight is still crucial to ensure the winning bid truly represents the best value throughout the contract's lifecycle, the initial competitive award is a strong foundation for fiscal responsibility.

What are the historical spending patterns for computer systems design services within the Department of Defense?

Historical spending patterns for computer systems design services within the Department of Defense have shown a consistent and significant upward trend over the past two decades, driven by the increasing reliance on digital infrastructure and the escalating nature of cyber threats. The DoD is one of the largest government purchasers of IT services, including system design, integration, and maintenance. Annual spending in this category often runs into the tens of billions of dollars across various agencies and branches. Contracts like the Cyber Mission Platform (CMP) are indicative of this trend, reflecting a strategic allocation of resources towards enhancing cyber capabilities. Factors influencing this spending include technological advancements, geopolitical instability, and the need to modernize legacy systems. The $69.4 million award for CMP aligns with the DoD's ongoing commitment to investing heavily in advanced IT solutions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 7575 COLSHIRE DR, 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: $102,836,219

Exercised Options: $102,836,219

Current Obligation: $69,376,343

Actual Outlays: $6,564

Subaward Activity

Number of Subawards: 1171

Total Subaward Amount: $86,917,377

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0056

IDV Type: GWAC

Timeline