Northrop Grumman awarded $9.9M for electronic tech order conversion services by the Air Force
Contract Overview
Contract Amount: $9,925,956 ($9.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2007-08-01
End Date: 2008-09-30
Contract Duration: 426 days
Daily Burn Rate: $23.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIXED PRICE
Sector: IT
Official Description: MATERIALS IN SUPPORT OF CLINS 0001 AND 0002 (ELECTRONIC TECH ORDER CONVERSION)
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $9.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MATERIALS IN SUPPORT OF CLINS 0001 AND 0002 (ELECTRONIC TECH ORDER CONVERSION) Key points: 1. Contract value appears reasonable for custom programming services. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type shifts risk to the contractor. 4. Short performance period indicates a focused project scope. 5. Contractor has a significant presence in the defense sector. 6. Services align with IT modernization efforts within the Air Force.
Value Assessment
Rating: good
The contract value of approximately $9.9 million for custom computer programming services is within a reasonable range for a project of this nature. Benchmarking against similar IT modernization contracts for the Department of Defense, the pricing appears competitive. The fixed-price contract type further suggests that the contractor has adequately estimated costs and is taking on the financial risk, which is generally a positive indicator of value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this method generally fosters a competitive environment, leading to potentially better pricing and service offerings for the government. The open nature of the competition suggests that the Air Force sought to maximize market participation.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at the best possible price through market forces.
Public Impact
The primary beneficiary is the Department of the Air Force, which will receive updated electronic technical order systems. Services delivered include custom computer programming to convert existing technical documentation. The geographic impact is primarily within the Air Force's operational and logistical chains. Workforce implications may involve specialized IT personnel for the conversion process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific bidder count limits assessment of competitive intensity.
- Details on the specific technology conversion are not provided, making technical risk assessment difficult.
Positive Signals
- Fixed-price contract structure aligns incentives and manages cost risk.
- Award to an established contractor like Northrop Grumman suggests a degree of confidence in their capabilities.
- The contract addresses a specific need for modernization of technical documentation.
Sector Analysis
This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a critical component of the broader Information Technology industry. The market for such services is substantial, driven by ongoing needs for software development, system integration, and modernization across all federal agencies. The Air Force's investment in electronic technical order conversion aligns with a general trend towards digitizing and streamlining support functions within the defense sector.
Small Business Impact
The data indicates this contract was not set aside for small businesses (SB=false) and there is no information on subcontracting plans. Given the nature of the work and the prime contractor, it is unlikely that a significant portion of the contract value would be allocated to small businesses unless specifically mandated. Further review of subcontracting reports would be needed to assess small business participation.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability is established through the fixed-price contract terms, requiring delivery of specified services. Transparency is generally facilitated by contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Logistics Agency (DLA) IT Modernization Programs
- Air Force Command and Control Systems
- Technical Data Management Systems
Risk Flags
- Potential for scope creep if conversion requirements are not clearly defined.
- Dependence on contractor's technical expertise for successful data conversion.
Tags
it, defense, department-of-defense, air-force, custom-computer-programming-services, full-and-open-competition, fixed-price, northrop-grumman-systems-corporation, delivery-order, georgia, medium-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. MATERIALS IN SUPPORT OF CLINS 0001 AND 0002 (ELECTRONIC TECH ORDER CONVERSION)
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 $9.9 million.
What is the period of performance?
Start: 2007-08-01. End: 2008-09-30.
What is Northrop Grumman's track record with similar electronic technical order conversion projects for the Department of Defense?
Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in aerospace, defense, and information systems. While specific details on their past performance on 'electronic tech order conversion' projects are not readily available in this summary, the company has a long history of developing and managing complex technical documentation and IT solutions for military applications. Their broad portfolio includes work on aircraft systems, C4ISR, and logistics, all of which involve significant technical data management. The Air Force's decision to award this contract to Northrop Grumman likely stems from their established capabilities and past performance on related, albeit not identical, projects within the defense sector. Further investigation into their specific contract history with the Air Force for technical data management systems would provide a more precise assessment.
How does the $9.9 million contract value compare to similar IT modernization efforts within the Air Force?
The $9.9 million contract value for custom computer programming services related to electronic technical order conversion appears to be a moderate investment for the Air Force. Benchmarking this against broader IT modernization efforts, such as large-scale software system development or enterprise resource planning implementations, this figure is relatively modest. However, for a specific project focused on converting technical orders, it represents a significant undertaking. Comparable contracts for specialized IT services within the defense sector can range from hundreds of thousands to tens of millions of dollars, depending on scope, complexity, and duration. Given the 426-day duration and the fixed-price nature, this award suggests a well-defined scope and a focused objective, making the value proposition reasonable within its specific context.
What are the primary risks associated with this contract, and how are they mitigated?
The primary risks associated with this contract include potential cost overruns if the conversion complexity is underestimated (though mitigated by the fixed-price structure), schedule delays due to technical challenges or resource constraints, and the risk of the converted data not meeting the required technical specifications or usability standards. The fixed-price contract type inherently shifts the financial risk of cost overruns to Northrop Grumman. Mitigation for schedule and technical risks would rely on the contractor's project management capabilities, adherence to the Statement of Work (SOW), and potentially quality assurance checks by the Air Force during development and upon delivery. The short performance period (426 days) also helps to limit the duration of exposure to these risks.
What is the expected effectiveness of the converted electronic technical orders in improving Air Force operations?
The expected effectiveness of the converted electronic technical orders hinges on the successful implementation of the custom programming services. Ideally, the conversion will result in a more accessible, searchable, and up-to-date digital format for technical documentation. This can lead to improved operational efficiency by reducing the time maintenance personnel spend locating information, minimizing errors caused by outdated or hard-to-read manuals, and facilitating easier updates and distribution of critical information. The ultimate effectiveness will be measured by the Air Force's ability to integrate these new electronic orders into their maintenance workflows and the subsequent impact on aircraft readiness, repair times, and overall operational support. User adoption and satisfaction among maintenance crews will be key indicators.
How has the Air Force's spending on custom computer programming services evolved over the past five years?
Analyzing the Air Force's spending on custom computer programming services (NAICS 541511) over the past five years would reveal trends in their IT modernization and sustainment strategies. Generally, defense agencies have shown a consistent and often increasing investment in IT services, driven by the need to maintain technological superiority, address cybersecurity threats, and modernize aging systems. Spending in this category typically fluctuates based on major program initiatives, system upgrades, and the outsourcing of specific IT functions. A detailed analysis would likely show a significant portion allocated to software development, system integration, and data management, reflecting the increasing reliance on digital infrastructure for operational command and control, logistics, and intelligence. This specific $9.9 million contract represents a small but important component of that broader spending pattern.
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: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIXED PRICE (J)
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
Financial Breakdown
Contract Ceiling: $9,925,956
Exercised Options: $9,925,956
Current Obligation: $9,925,956
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4522G
IDV Type: FSS
Timeline
Start Date: 2007-08-01
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2021-12-07
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