DoD's $22.6M Custom Computer Programming Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $22,573,640 ($22.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2017-10-26
End Date: 2018-12-31
Contract Duration: 431 days
Daily Burn Rate: $52.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF DMON 2.0 CY18 ANNUAL ORDER
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $22.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF DMON 2.0 CY18 ANNUAL ORDER Key points: 1. Contract value of $22.6 million for custom computer programming services. 2. Awarded to Northrop Grumman Systems Corporation under full and open competition. 3. Potential risk associated with firm-fixed-price contracts if scope changes. 4. Spending falls within the IT sector, specifically custom computer programming.
Value Assessment
Rating: good
The contract value of $22.6 million appears reasonable for custom computer programming services, especially given the duration. Benchmarking against similar large-scale IT development contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process that should lead to fair pricing. The use of a delivery order under a larger contract framework is a common procurement method.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition award.
Public Impact
Taxpayers benefit from competitive bidding for IT services. The Department of Defense receives specialized custom programming. Northrop Grumman secures a significant contract for its services. The contract supports the Air Force's technological capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Firm-fixed-price risk if scope creep occurs.
- Potential for vendor lock-in if not managed carefully.
Positive Signals
- Awarded via full and open competition.
- Clear contract end date.
- Specific service category identified.
Sector Analysis
This contract falls under the Information Technology sector, specifically custom computer programming services. Spending in this area is substantial across government agencies, supporting a wide range of digital infrastructure and software development needs.
Small Business Impact
The data indicates this contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no explicit indication of small business participation in this specific award, which is a common characteristic of large prime contracts.
Oversight & Accountability
Oversight would typically involve contract performance monitoring by the Air Force contracting officer and potentially program management reviews. The use of a delivery order suggests it's part of a broader contract vehicle that may have its own oversight mechanisms.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for scope creep with FFP.
- Lack of detail on specific services provided.
- No explicit small business participation noted.
- Contract duration is relatively short for complex development.
Tags
custom-computer-programming-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF DMON 2.0 CY18 ANNUAL ORDER
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 $22.6 million.
What is the period of performance?
Start: 2017-10-26. End: 2018-12-31.
What specific custom computer programming services were rendered under this contract?
The contract identifies the service as 'Custom Computer Programming Services' (NAICS 541511). However, the specific nature of these services, such as software development, system integration, or database management, is not detailed in the provided data. Further analysis of the contract's statement of work would be necessary to understand the precise technical deliverables and their alignment with Air Force requirements.
What is the potential risk associated with the firm-fixed-price contract type for these services?
A firm-fixed-price (FFP) contract commits the contractor to a total price regardless of the actual costs incurred. For custom programming, the primary risk with FFP is scope creep. If the requirements evolve or expand beyond the initial agreement without a formal modification and price adjustment, the contractor may incur losses, or conversely, if the government doesn't meticulously define scope, they might overpay for services that don't fully meet evolving needs.
How does the $22.6 million value compare to similar custom programming contracts awarded by the DoD?
The $22.6 million value for custom computer programming services over approximately 14 months (Oct 2017 - Dec 2018) is substantial but not unusual for large-scale government IT projects. Benchmarking requires comparing it against contracts with similar scope, complexity, duration, and specific technical requirements. Without detailed comparisons to peer contracts, it's difficult to definitively assess if this represents exceptional value, but it falls within the expected range for significant defense IT development efforts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,573,640
Exercised Options: $22,573,640
Current Obligation: $22,573,640
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862113D6318
IDV Type: IDC
Timeline
Start Date: 2017-10-26
Current End Date: 2018-12-31
Potential End Date: 2018-12-31 00:00:00
Last Modified: 2018-09-05
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