DoD's $59.5M SATURN SKY Contract Awarded to Northrop Grumman Amidst Software Publishers Sector
Contract Overview
Contract Amount: $59,535,622 ($59.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-12-04
End Date: 2026-06-03
Contract Duration: 2,007 days
Daily Burn Rate: $29.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SATURN SKY
Place of Performance
Location: ANNAPOLIS JUNCTION, HOWARD County, MARYLAND, 20701
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $59.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SATURN SKY Key points: 1. Contract value of $59.5M for SATURN SKY. 2. Northrop Grumman Systems Corporation is the primary contractor. 3. The contract falls under the Software Publishers NAICS code. 4. Awarded by the Department of the Air Force, part of DoD. 5. Competition was full and open after exclusion of sources.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed carefully. Benchmarking against similar software development contracts is difficult without more specific details on the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a competitive process but with specific limitations. This method aims for fair pricing but the exclusion of certain sources might limit the full competitive landscape.
Taxpayer Impact: The CPFF structure necessitates robust oversight to ensure taxpayer funds are used efficiently and effectively, mitigating potential cost increases.
Public Impact
Impacts the Department of Defense's software capabilities. Potential for technological advancements in software publishing. Northrop Grumman's role highlights major defense contractor involvement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF pricing risk
- Limited competition details
Positive Signals
- Full and open competition
- Established contractor
Sector Analysis
The Software Publishers sector is critical for government operations, providing essential digital tools and platforms. This contract's value is moderate within the broader IT spending landscape, but significant for specialized software development.
Small Business Impact
This contract does not appear to have specific set-asides for small businesses, indicating a focus on large, established contractors within the defense sector. Further analysis would be needed to determine if subcontracting opportunities exist for SMBs.
Oversight & Accountability
The Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight from the Department of the Air Force to ensure cost control and prevent scope creep. Regular performance reviews and audits are crucial for accountability.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns.
- Potential for limited competition due to source exclusion.
- Lack of specific project details hinders value assessment.
- No clear indication of small business participation.
Tags
software-publishers, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SATURN SKY
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 $59.5 million.
What is the period of performance?
Start: 2020-12-04. End: 2026-06-03.
What specific software or system is being developed or maintained under the SATURN SKY contract, and how does it align with current Air Force modernization priorities?
The specific nature of the SATURN SKY contract is not detailed in the provided data. Understanding the project's objectives is crucial to assess its alignment with Air Force modernization efforts and to determine if the $59.5M investment is strategically sound. Without this information, evaluating its true value and necessity is challenging.
Given the CPFF structure, what are the primary risk mitigation strategies employed by the Air Force to control costs and prevent contractor inefficiencies?
The Air Force must implement stringent oversight mechanisms for CPFF contracts. This includes detailed cost tracking, regular performance reviews against milestones, and robust auditing processes. Establishing clear performance metrics and incentivizing efficiency, while penalizing cost overruns beyond reasonable justification, are key to mitigating risks associated with this pricing model.
How does the 'Full and Open Competition After Exclusion of Sources' approach balance the need for competitive pricing with the specific technical requirements of the SATURN SKY project?
This procurement method suggests that while competition was sought, certain sources were deemed ineligible, possibly due to specialized capabilities or security requirements. The balance lies in ensuring that the remaining pool of eligible bidders could offer competitive pricing while meeting the unique technical demands of the SATURN SKY project. The effectiveness depends on the breadth of the excluded sources and the competitiveness of the remaining bidders.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
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: 9020 JUNCTION DR, ANNAPOLIS JUNCTION, MD, 20701
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $67,216,504
Exercised Options: $67,216,504
Current Obligation: $59,535,622
Actual Outlays: $2,810,235
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $154,560
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA830716D0012
IDV Type: IDC
Timeline
Start Date: 2020-12-04
Current End Date: 2026-06-03
Potential End Date: 2026-06-03 00:00:00
Last Modified: 2025-12-18
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