DoD's $44M Engineering Services Contract Awarded to Northrop Grumman Without Competition
Contract Overview
Contract Amount: $43,958,902 ($44.0M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2010-12-10
End Date: 2016-02-29
Contract Duration: 1,907 days
Daily Burn Rate: $23.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ENGINEERING SERVICES
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31088
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $44.0 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: ENGINEERING SERVICES Key points: 1. Significant contract value of $43.96 million for engineering services. 2. Sole-source award to Northrop Grumman Systems Corp indicates limited competition. 3. Contract duration of 1907 days suggests a long-term need. 4. The 'GA' award type might imply a specific contracting vehicle or set-aside, requiring further investigation.
Value Assessment
Rating: questionable
The contract value of $43.96 million for engineering services is substantial. Without comparable contract data or a competitive bidding process, it is difficult to assess if this price is reasonable or represents good value for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman Systems Corp. This lack of competition limits price discovery and may result in a higher cost to the taxpayer.
Taxpayer Impact: The absence of competition for a $43.96 million contract raises concerns about potential overspending and reduced value for taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The long contract duration could lock the government into a specific provider, limiting future flexibility. The specific nature of 'Engineering Services' for the Air Force suggests critical operational support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Clear contract award type (Definitive Contract)
- Firm Fixed Price contract type can provide cost certainty if priced appropriately
Sector Analysis
Engineering services are crucial for the Department of Defense, supporting complex projects and maintenance. Benchmarks for such services can vary widely based on specialization and project scope, but competitive bidding typically ensures better value.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corp and does not indicate any subcontracting to small businesses. This sole-source award missed an opportunity to engage small businesses in providing specialized engineering services.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense received fair pricing and adequate justification for not pursuing a competitive process. Oversight should focus on the necessity of this specific vendor and the pricing structure.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award lacks transparency and competitive pressure.
- Potential for inflated costs due to absence of bidding.
- Long contract duration may limit flexibility and innovation.
- No indication of small business participation.
Tags
engineering-services, department-of-defense, ga, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.0 million to NORTHROP GRUMMAN SYSTEMS CORP. ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORP.
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 $44.0 million.
What is the period of performance?
Start: 2010-12-10. End: 2016-02-29.
What was the justification for awarding this significant engineering services contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. For this $43.96 million contract, the Department of the Air Force would need to provide detailed documentation demonstrating why Northrop Grumman was the only viable option and why competition was not feasible or advantageous.
How does the firm fixed price compare to market rates for similar engineering services, given the lack of competition?
Without a competitive bidding process, it is challenging to definitively assess the firm fixed price against market rates. A thorough market analysis or benchmarking against other sole-source contracts for comparable services would be necessary to determine if the price paid was reasonable and represented good value for the government and taxpayers.
What is the long-term impact of this sole-source award on the Air Force's ability to access innovative engineering solutions?
Sole-source contracts can limit access to innovation by excluding other potential providers who might offer novel approaches or technologies. Over the 1907-day duration, the Air Force might miss out on advancements from a broader market, potentially impacting its long-term technological edge and operational effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 101 INDUSTRIAL PARK BLVD, WARNER ROBINS, GA, 31088
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $43,958,902
Exercised Options: $43,958,902
Current Obligation: $43,958,902
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-12-10
Current End Date: 2016-02-29
Potential End Date: 2016-02-29 00:00:00
Last Modified: 2016-05-05
More Contracts from Northrop Grumman Systems Corp
- Ground-Based Strategic Deterrent (gbsd) Engineering and Manufacturing Development (EMD) and Early Production and Deployment (P&D) — $11.7B (Department of Defense)
- Acat 1D B-2 Dms-M EMD — $863.7M (Department of Defense)
- 200411!000088!5700!GU22 !asc/Ysk !F3365799D0028 !A!N! !N!0023 ! !20040827!20081230!362686958!008255408!016435559!n!northrop Grumman Systems Corpo!3520 East Avenue M !palmdale !ca!93550!55156!037!06!palmdale !LOS Angeles !california!+000000400000!n!n!000000000000!ac65!rdte/Electronics&communication Eq-Eng/Manuf DEV !a1c!other Aircraft Equipment !376 !B-2 RMP !336411!E! !5!B!S! ! ! !99990909!B! ! !n!z!d!n!r!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! !Y! ! !0001! ! — $542.1M (Department of Defense)
- Acat 1, B2 UCA for DMS TD Phase 2 — $536.3M (Department of Defense)
- Enhanced Polar System Recapitalization - TWO Payloads (P6&P7) — $472.1M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)