Northrop Grumman awarded $26M for Distributed Mission Operations Network 2.0 by the Air Force

Contract Overview

Contract Amount: $26,020,177 ($26.0M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2019-12-18

End Date: 2020-12-31

Contract Duration: 379 days

Daily Burn Rate: $68.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DISTRIBUTED MISSION OPERATIONS NETWORK 2.0

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DISTRIBUTED MISSION OPERATIONS NETWORK 2.0 Key points: 1. Contract value of $26 million for a one-year period suggests a significant investment in critical mission support. 2. The use of Firm Fixed Price contract type indicates a defined scope and cost, transferring some risk to the contractor. 3. The award was made under full and open competition, implying a robust bidding process. 4. The primary contractor, Northrop Grumman, is a major defense industry player with extensive experience. 5. The contract's focus on custom computer programming services aligns with the need for advanced, tailored solutions. 6. The relatively short duration of the contract may indicate a need for agile adaptation or a phased approach to the program.

Value Assessment

Rating: good

The contract value of $26 million for a one-year period for custom computer programming services appears reasonable given the scope of supporting a distributed mission operations network. Benchmarking against similar large-scale IT service contracts for defense agencies suggests this falls within expected ranges for complex system development and integration. The firm fixed-price structure provides cost certainty, though the ultimate value depends on the successful delivery of the specified services and capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, driving potentially better pricing and innovation. The Air Force's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions for the Distributed Mission Operations Network 2.0.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider array of innovative solutions, maximizing the value received for the government's investment.

Public Impact

The primary beneficiaries are likely military personnel who will utilize the enhanced Distributed Mission Operations Network for training and operational readiness. The services delivered will support the modernization and enhancement of critical command and control and simulation capabilities. The geographic impact is likely widespread, as distributed mission operations often involve multiple locations and personnel across various bases. Workforce implications may include the need for specialized IT professionals, software developers, and systems engineers, both within the contractor's organization and potentially within the government for oversight and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of custom programming proves more complex than initially estimated, despite the fixed-price structure.
Risk of vendor lock-in if the developed systems are highly proprietary and difficult to transition to other providers in the future.
Dependence on a single large contractor for a critical network infrastructure component could pose a risk if performance falters.

Positive Signals

Award to a major defense contractor like Northrop Grumman suggests a high likelihood of technical capability and successful execution.
The use of full and open competition indicates a market-driven approach, likely resulting in a well-defined and cost-effective solution.
Firm fixed-price contract type provides cost certainty and incentivizes contractor efficiency.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The market for defense IT services is substantial, driven by the continuous need for modernization and advanced technological capabilities to maintain military superiority. Comparable spending benchmarks for large-scale network infrastructure and software development projects within the Department of Defense often run into tens or hundreds of millions of dollars, making this $26 million award a significant but not extraordinary investment for a critical operational network.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Northrop Grumman, is a large corporation. While there is no direct set-aside, large prime contractors are often required to meet subcontracting goals with small businesses. The extent to which small businesses will participate as subcontractors on this specific contract is not detailed here, but it represents a potential avenue for small business involvement in supporting large defense IT programs.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the firm fixed-price contract terms, requiring delivery of specified services and capabilities. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Air Force Network Integration Center
Distributed Common Ground System (DCGS)
Mission Training Complex Capabilities (MTCC)
Cloud Computing Services
Cybersecurity Services

Risk Flags

Potential for technical complexity in custom programming.
Dependence on a single large contractor for critical infrastructure.
Need for robust oversight to ensure performance and adherence to scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. DISTRIBUTED MISSION OPERATIONS NETWORK 2.0

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 $26.0 million.

What is the period of performance?

Start: 2019-12-18. End: 2020-12-31.

What is the specific nature of the 'Distributed Mission Operations Network 2.0' and its importance to the Air Force?

The 'Distributed Mission Operations Network 2.0' (DMON 2.0) is a critical infrastructure program designed to provide a secure, resilient, and advanced network environment for simulating and executing complex military missions. It allows geographically dispersed units and personnel to train and operate together in a virtual environment, mirroring real-world operational conditions. Its importance lies in enhancing combat readiness, improving training effectiveness, reducing operational costs associated with physical deployments, and enabling rapid adaptation to evolving threats. The '2.0' designation suggests an upgrade or modernization of an existing network, likely incorporating newer technologies for improved performance, security, and functionality.

How does the $26 million contract value compare to previous spending on similar mission operations networks?

Without specific historical data for DMON 2.0 or directly comparable predecessor programs, a precise comparison is challenging. However, $26 million for a one-year contract focused on custom computer programming for a network infrastructure suggests a significant investment. Large-scale IT modernization and network development contracts within the Department of Defense frequently range from tens to hundreds of millions of dollars over their lifecycle. This award appears to be a substantial, but not outlier, investment for a critical capability. Further analysis would require benchmarking against specific Air Force IT modernization programs or similar distributed simulation/training network contracts awarded in recent years.

What are the key performance indicators (KPIs) or metrics used to assess the success of this contract?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for a custom computer programming services contract supporting a mission operations network, typical KPIs would likely include: network uptime and availability, data transfer speeds and latency, system reliability and error rates, successful simulation execution rates, cybersecurity compliance and vulnerability metrics, user satisfaction scores from operational units, and timely delivery of software updates and enhancements. The firm fixed-price nature of the contract implies that meeting the defined scope and technical specifications within budget and schedule are primary success factors.

What is Northrop Grumman's track record with similar large-scale IT and network infrastructure contracts for the Department of Defense?

Northrop Grumman Systems Corporation has an extensive and well-established track record of delivering large-scale IT, network infrastructure, and complex systems integration solutions for the Department of Defense and other federal agencies. They are a major defense contractor involved in numerous high-value programs across various domains, including command and control, intelligence, surveillance, reconnaissance (ISR), and cybersecurity. Their experience with programs like the Distributed Common Ground System (DCGS) and various communication network upgrades demonstrates their capability to handle complex, mission-critical IT projects. This background suggests a strong probability of successful execution for the DMON 2.0 contract.

Are there any identified risks associated with the custom computer programming aspect of this contract?

Yes, custom computer programming inherently carries risks. These can include: scope creep, where requirements evolve beyond the initial agreement, potentially leading to cost overruns or delays; technical complexity, where unforeseen challenges in development or integration may arise; integration issues, ensuring the new software works seamlessly with existing legacy systems; and the potential for bugs or performance deficiencies in the delivered code. The firm fixed-price nature of this contract aims to mitigate cost risks for the government, but it places the burden of managing these technical and development risks squarely on Northrop Grumman.

What is the potential impact of this contract on the broader defense IT market and competition?

The award of a $26 million contract for DMON 2.0 to Northrop Grumman, under full and open competition, signals continued government investment in advanced IT infrastructure for defense. While this specific award goes to a large incumbent, the initial competition process likely involved multiple major players, indicating a healthy market for such services. It reinforces the importance of capabilities in network modernization, simulation, and custom software development within the defense sector. The success of this contract could influence future solicitations and potentially encourage further innovation from competitors seeking to capture similar work.

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: $26,020,177

Exercised Options: $26,020,177

Current Obligation: $26,020,177

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA862113D6318

IDV Type: IDC

Timeline