DoD awards Northrop Grumman $38.3M for SATURN SKY CMP Sustainment through full and open competition

Contract Overview

Contract Amount: $38,336,282 ($38.3M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2021-04-01

End Date: 2025-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SATURN SKY CMP SUSTAINMENT

Place of Performance

Location: ANNAPOLIS JUNCTION, HOWARD County, MARYLAND, 20701

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $38.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SATURN SKY CMP SUSTAINMENT Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for sustainment services. 2. The contract is valued at $38.3 million over a period of 1460 days. 3. Competition was full and open after exclusion of sources, indicating a competitive process. 4. The sector is IT, specifically software publishing, with a significant contract value.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the base award amount of $38.3M for a 4-year sustainment contract appears reasonable within the IT sector.

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'. This suggests that while competition was sought, there might have been prior specific circumstances or exclusions that were justified, but the overall intent was competitive bidding.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the services rendered, as multiple bidders had the opportunity to compete.

Public Impact

Ensures continued operational capability for a critical Air Force system. Supports the software publishing industry and associated technological advancements. Provides long-term employment opportunities within the defense contracting sector. Contributes to national security through sustained system readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep in Cost Plus Fixed Fee contracts.
Reliance on a single contractor for sustainment could pose long-term risks.
The 'exclusion of sources' clause warrants further investigation into its necessity and impact.

Positive Signals

Awarded through full and open competition, promoting market fairness.
Long-term contract provides stability and predictability for sustainment.
Significant investment in critical IT infrastructure for the Air Force.

Sector Analysis

This contract falls within the Information Technology sector, specifically software publishing. The value of $38.3 million for a 4-year sustainment contract is substantial and reflects the complexity and importance of maintaining advanced software systems for defense applications.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The primary contractor, Northrop Grumman Systems Corporation, is a large aerospace and defense company. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The contract is managed by the Department of the Air Force, a component of the Department of Defense. Standard oversight mechanisms for defense contracts, including performance monitoring and financial audits, would apply to ensure accountability and proper use of funds.

Related Government Programs

Software Publishers
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Potential for vendor lock-in if Northrop Grumman is the sole provider of necessary expertise.
The 'exclusion of sources' clause requires further scrutiny to ensure fair competition.
Dependence on a single contractor for critical system sustainment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SATURN SKY CMP SUSTAINMENT

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 $38.3 million.

What is the period of performance?

Start: 2021-04-01. End: 2025-03-31.

What specific sustainment activities are covered under this contract, and how do they align with the system's lifecycle needs?

The contract covers sustainment activities for the SATURN SKY CMP. While the exact nature of these activities isn't detailed, sustainment typically includes maintenance, updates, bug fixes, and technical support to ensure the software remains operational and effective. The 4-year duration suggests a focus on maintaining the system's readiness and performance over a significant period, aligning with typical lifecycle management needs for complex IT systems.

What were the specific reasons for excluding certain sources during the 'full and open competition after exclusion of sources' process?

The exclusion of sources implies that while the competition was generally open, specific vendors or types of vendors were intentionally not considered. This could be due to proprietary technology, unique capabilities required, prior performance issues with certain vendors, or specific national security concerns. Understanding these exclusions is crucial to fully assess the competitive landscape and potential price impacts.

How does the per-unit cost or cost-per-user for this sustainment contract compare to industry benchmarks for similar software systems?

A direct per-unit cost benchmark is difficult without knowing the specific units of service or users supported by the SATURN SKY CMP. However, for a 4-year sustainment contract valued at $38.3 million, the average annual cost is approximately $9.575 million. This figure needs to be contextualized against the system's criticality, user base size, and complexity to determine if it represents good value compared to similar enterprise-level software sustainment contracts in the defense sector.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $46,198,571

Exercised Options: $38,402,867

Current Obligation: $38,336,282

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $3,596,060

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