DoD's $18.2M contract for ADP equipment repair awarded to Northrop Grumman, raising value-for-money questions

Contract Overview

Contract Amount: $18,235,404 ($18.2M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2004-09-10

End Date: 2007-07-31

Contract Duration: 1,054 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: IT

Official Description: 200412!000863!5700!GJ20 !WR-ALC/PKO !GS35F4522G !C!N! !Y!FA850104F0029! !20040910!20060308!121713036!004179453!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!ONE RANCHO CARMEL !SAN DIEGO !CA!92128!65968!153!13!ROBINS AFB !HOUSTON !GEORGIA !+000004650236!N!N!000000000000!J070!MAINT & REPAIR OF EQ/ADP EQUIP & SUPPLIES !S1 !SERVICES !000 !* !541519!E! !6! ! ! ! ! !99990909!B!E!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200412!000863!5700!GJ20 !WR-ALC/PKO !GS35F4522G !C!N! !Y!FA850104F0029! !20040910!20060308!121713036!004179453!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!ONE RANCHO CARMEL !SAN DIEGO !CA!92128!65968!153!13!ROBINS AFB !HOUS… Key points: 1. The contract's value appears high relative to its duration and scope, suggesting potential overpayment. 2. Limited competition data makes it difficult to assess if fair market prices were achieved. 3. The award to a single large contractor may indicate a lack of robust market engagement. 4. Performance context is missing, making it hard to evaluate the effectiveness of the repair services. 5. This contract falls within the IT services sector, specifically focusing on equipment maintenance. 6. The significant dollar amount warrants scrutiny regarding cost-efficiency and necessity.

Value Assessment

Rating: questionable

The total award of $18.2 million over approximately 3 years for maintenance and repair of ADP equipment seems substantial. Without specific details on the volume or complexity of repairs, it's challenging to benchmark against similar contracts. However, the average annual cost approaches $6 million, which could be high for standard equipment repair unless highly specialized or extensive services were rendered. Further analysis of the specific equipment covered and the scope of work is needed to definitively assess value for money.

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. However, the data does not specify the number of bids received. A high number of bidders typically leads to better price discovery and potentially lower costs for the government. The fact that Northrop Grumman Systems Corporation was the awardee suggests they offered the most advantageous proposal based on the evaluation criteria.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down prices and encourage innovation. However, the ultimate benefit depends on the number of actual bids and the effectiveness of the evaluation process.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Air Force, which receives essential maintenance for its Automated Data Processing (ADP) equipment. Services delivered include maintenance and repair of ADP equipment and supplies, ensuring operational readiness. The contract's geographic impact is centered around Robins AFB, Georgia, indicating a focus on a specific military installation. Workforce implications are likely related to the technical staff employed by Northrop Grumman to perform the repair services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the large contract value and lack of detailed performance metrics.
Risk of vendor lock-in if specialized knowledge or parts are required, limiting future competition.
The duration of the contract (over 3 years) could lead to price increases or service degradation if not actively managed.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Northrop Grumman is a large, established defense contractor with significant experience in IT services.
The contract aims to ensure the operational readiness of critical military ADP equipment.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on the maintenance and repair of computer hardware and related supplies. The market for IT maintenance and repair services is substantial, with numerous large and small businesses competing for government contracts. Benchmarking this contract's value would require comparing it to similar IT maintenance contracts awarded by the DoD or other federal agencies, considering factors like equipment type, service level agreements, and contract duration.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss=false, sb=false). As a large contract awarded to a major corporation, it is unlikely to have significant direct subcontracting opportunities for small businesses unless explicitly mandated or pursued by the prime contractor. The focus on a large prime contractor may limit the direct participation of small businesses in this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Inspector General investigations could be initiated if fraud, waste, or abuse is suspected. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available, though detailed performance and cost data may be less accessible.

Related Government Programs

IT Equipment Maintenance Contracts
Department of Defense IT Services
Robins AFB Support Contracts
Northrop Grumman Federal Contracts

Risk Flags

High Contract Value
Limited Competition Detail
Lack of Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200412!000863!5700!GJ20 !WR-ALC/PKO !GS35F4522G !C!N! !Y!FA850104F0029! !20040910!20060308!121713036!004179453!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!ONE RANCHO CARMEL !SAN DIEGO !CA!92128!65968!153!13!ROBINS AFB !HOUSTON !GEORGIA !+000004650236!N!N!000000000000!J070!MAINT & REPAIR OF EQ/ADP EQUIP & SUPPLIES !S1 !SERVICES !000 !* !541519!E! !6! ! ! ! ! !999

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 $18.2 million.

What is the period of performance?

Start: 2004-09-10. End: 2007-07-31.

What specific types of ADP equipment were covered under this contract, and what was the scope of the maintenance and repair services?

The provided data indicates the contract covers 'MAINT & REPAIR OF EQ/ADP EQUIP & SUPPLIES'. However, it does not specify the exact types of Automated Data Processing (ADP) equipment (e.g., servers, workstations, peripherals, network devices) or the detailed scope of services (e.g., preventative maintenance, corrective repairs, on-site support, depot-level repair). This lack of specificity makes it difficult to assess the complexity and necessity of the services rendered, and consequently, the reasonableness of the $18.2 million cost over its duration. Understanding the specific equipment and the required service levels is crucial for a thorough value-for-money analysis.

How many bids were received for this 'full and open competition' contract, and what were the key evaluation criteria?

While the contract is categorized as 'FULL AND OPEN COMPETITION' (ct=FULL AND OPEN COMPETITION), the provided data does not specify the number of bids received. This information is critical for understanding the level of competition actually achieved. A high number of bids typically suggests robust market interest and can lead to better pricing for the government. The data also does not detail the evaluation criteria used (e.g., price, technical capability, past performance). Without knowing how proposals were evaluated, it's challenging to determine if the award to Northrop Grumman Systems Corporation was based on the best overall value or primarily on price.

Can the $18.2 million award be benchmarked against similar IT maintenance contracts for ADP equipment within the Department of Defense?

Benchmarking this $18.2 million contract requires comparing it to similar IT maintenance and repair contracts for ADP equipment awarded by the DoD. Key factors for comparison include the type and quantity of equipment, the duration of the contract (1054 days in this case), the service level agreements (SLAs), and the geographic location of service. Without access to a comprehensive database of comparable contracts with detailed service descriptions and pricing, a precise benchmark is difficult. However, an average annual cost of approximately $6 million for ADP equipment repair suggests a need for further investigation into the contract's specifics to ensure it represents fair market value.

What is Northrop Grumman's track record with similar IT maintenance and repair contracts for the Department of Defense?

Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in various IT services, including maintenance and support. While this specific data point doesn't detail their past performance on similar contracts, their status as a large, established entity suggests they have likely held numerous contracts of this nature. A deeper dive into their contract history with the DoD for IT maintenance and repair would be necessary to assess their performance, reliability, and pricing trends on comparable work. This would involve reviewing past performance evaluations and contract awards to gauge their consistency and effectiveness.

Are there any indications of cost overruns or significant changes in the contract's value after the initial award?

The provided data reflects the initial award amount of $18,235,403.66. There is no information within this dataset to indicate subsequent modifications, change orders, or cost overruns that would alter the total value of the contract beyond this initial figure. The contract's period of performance was from September 10, 2004, to July 31, 2007. To assess potential cost overruns, one would need to examine the contract's modification history, which is not included in this summary data.

What is the historical spending trend for ADP equipment maintenance and repair within the Air Force or DoD?

This single contract award of $18.2 million represents a snapshot of spending for ADP equipment maintenance and repair. To understand historical spending trends, one would need to analyze aggregated data over multiple fiscal years for similar contract types within the Air Force and the broader Department of Defense. This would involve looking at the total obligated amounts, the number of contracts awarded, and the average value per contract for this service category. Such an analysis would help determine if this particular contract is an outlier, part of a growing trend, or consistent with historical spending patterns for such services.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: Titan II Inc. (UEI: 016435559)

Address: 12900 FEDERAL SYSTEMS PARK DRIVE, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4522G

IDV Type: FSS

Timeline