DoD's $32.3M DMON 2.0 Order to Northrop Grumman for Custom Computer Programming Services
Contract Overview
Contract Amount: $32,255,301 ($32.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-06-30
End Date: 2024-06-29
Contract Duration: 365 days
Daily Burn Rate: $88.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CY 23/24 DMON 2.0 ANNUAL ORDER - DISTRIBUTED MISSION OPERATIONS NETWORK
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $32.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CY 23/24 DMON 2.0 ANNUAL ORDER - DISTRIBUTED MISSION OPERATIONS NETWORK Key points: 1. Significant contract value for specialized IT services. 2. Northrop Grumman is a major defense contractor, indicating potential for concentrated market share. 3. Risk of vendor lock-in and potential cost overruns in complex IT projects. 4. IT sector spending is substantial, with custom programming being a key component.
Value Assessment
Rating: good
The contract value of $32.3M for a 1-year duration appears reasonable for custom computer programming services. Benchmarking against similar large-scale IT development contracts suggests this pricing is within expected ranges, though specific feature scope is unknown.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally effective in achieving fair market prices, although the specific number of bidders and their proposals are not detailed.
Taxpayer Impact: Taxpayer funds are utilized for essential defense IT infrastructure, with competition aiming for cost-effectiveness.
Public Impact
Ensures continued operation and potential upgrades for critical distributed mission operations. Supports the Department of the Air Force's technological capabilities. Impacts the IT services market by awarding a substantial contract to a prime vendor.
Waste & Efficiency Indicators
Waste Risk Score: 88 / 10
Warning Flags
- Potential for scope creep in custom programming.
- Reliance on a single vendor for critical infrastructure.
Positive Signals
- Awarded under full and open competition.
- Clear contract duration and delivery order structure.
Sector Analysis
This contract falls within the IT sector, specifically custom computer programming services, which are crucial for modernizing and maintaining defense systems. Spending in this area is consistently high across government agencies.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific delivery order, which is common for prime contracts of this magnitude.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. Standard contract management processes should be in place to monitor performance, costs, and adherence to the Statement of Work.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Vendor lock-in potential
- Complexity of custom software development
- Scope creep risk
- Dependence on a single large prime contractor
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 $32.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CY 23/24 DMON 2.0 ANNUAL ORDER - DISTRIBUTED MISSION OPERATIONS NETWORK
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 $32.3 million.
What is the period of performance?
Start: 2023-06-30. End: 2024-06-29.
What specific enhancements or new capabilities does DMON 2.0 aim to deliver under this order?
The specific enhancements or new capabilities are not detailed in the provided data. Typically, such orders fund the development, integration, or maintenance of complex software systems supporting distributed operations. Further analysis would require access to the Statement of Work (SOW) to understand the precise technical objectives and expected outcomes.
What are the key performance indicators (KPIs) used to measure the success of this custom programming contract?
Key performance indicators are not explicitly stated in the provided data. For custom programming services, KPIs often include adherence to project timelines, successful code deployment, system uptime, bug resolution rates, and user satisfaction. The contracting officer would typically define these in the SOW to ensure the contractor meets performance expectations.
How does the pricing structure (Firm Fixed Price) mitigate risks associated with custom software development?
A Firm Fixed Price (FFP) contract structure aims to mitigate risk by establishing a set price regardless of the contractor's actual costs. This incentivizes the contractor to manage their expenses efficiently. However, for custom software, FFP can increase risk for the contractor if requirements change significantly, potentially leading to disputes or reduced quality if not managed carefully.
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
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: $32,255,301
Exercised Options: $32,255,301
Current Obligation: $32,255,301
Subaward Activity
Number of Subawards: 49
Total Subaward Amount: $8,660,403
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862113D6318
IDV Type: IDC
Timeline
Start Date: 2023-06-30
Current End Date: 2024-06-29
Potential End Date: 2024-06-29 00:00:00
Last Modified: 2024-07-03
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