DoD's $34M CAF DMO Annual Order Awarded to Northrop Grumman for Custom Computer Programming
Contract Overview
Contract Amount: $34,172,076 ($34.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-06-30
End Date: 2026-06-29
Contract Duration: 364 days
Daily Burn Rate: $93.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: COMBAT AIR FORCES DISTRIBUTED MISSION OPERATIONS (CAF DMO) ANNUAL ORDER 2025-2026
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $34.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: COMBAT AIR FORCES DISTRIBUTED MISSION OPERATIONS (CAF DMO) ANNUAL ORDER 2025-2026 Key points: 1. Significant contract value of $34.17M for critical Air Force operations. 2. Northrop Grumman, a major defense contractor, secured the award. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract focuses on custom computer programming services, vital for modern defense systems.
Value Assessment
Rating: good
The contract's firm fixed price structure provides cost certainty. Benchmarking against similar custom computer programming services contracts is recommended to ensure optimal value, though the provided benchmark of $93,879 suggests a potentially high per-unit cost.
Cost Per Unit: $93,879
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayer funds are being utilized for essential defense operations, with competition aiming to maximize efficiency and minimize unnecessary costs.
Public Impact
Ensures continued operational readiness for Combat Air Forces. Supports advanced technological capabilities within the Department of the Air Force. Impacts personnel relying on these distributed mission operations systems. Contributes to the broader defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creeps beyond initial estimates.
- Dependence on a single contractor for critical operational systems.
- Cybersecurity risks associated with sensitive defense data.
Positive Signals
- Clear contract duration and defined deliverables.
- Utilizes a competitive bidding process.
- Firm fixed price contract type offers budget predictability.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming, which is crucial for modernizing and maintaining defense systems. Spending in this area is substantial across government agencies, with benchmarks varying widely based on complexity and service level.
Small Business Impact
The data indicates the awardee is Northrop Grumman Systems Corporation, a large business. There is no explicit mention of small business participation in this specific award, suggesting opportunities may lie in subcontracting roles.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The firm fixed price contract and defined period of performance provide a framework for accountability, but ongoing monitoring of performance and deliverables is essential.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High benchmark per-unit cost.
- Potential for vendor lock-in.
- Cybersecurity risks.
- Dependence on a single large 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 $34.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. COMBAT AIR FORCES DISTRIBUTED MISSION OPERATIONS (CAF DMO) ANNUAL ORDER 2025-2026
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 $34.2 million.
What is the period of performance?
Start: 2025-06-30. End: 2026-06-29.
How does the $93,879 benchmark per unit compare to industry standards for similar custom computer programming services in the defense sector?
The provided benchmark of $93,879 per unit appears high when compared to typical industry rates for custom computer programming services, even within the defense sector. Further analysis would require detailed understanding of the specific services rendered, the complexity of the software, and the level of integration required. It is crucial to validate this benchmark against comparable government contracts and commercial offerings to ensure fair pricing.
What are the primary risks associated with relying on Northrop Grumman for these critical distributed mission operations systems?
The primary risks include vendor lock-in, where the Air Force becomes heavily dependent on Northrop Grumman's expertise and proprietary systems, making future transitions difficult and potentially costly. There's also a risk of performance issues or delays impacting operational readiness. Furthermore, cybersecurity vulnerabilities within the contractor's systems could pose a significant threat to sensitive defense data and mission integrity.
How effectively does this contract contribute to the overall mission readiness and technological advancement of the Combat Air Forces?
This contract is designed to directly support the operational readiness of the Combat Air Forces by ensuring the functionality and availability of their distributed mission operations systems. By procuring custom programming services, the Air Force aims to maintain, update, and potentially enhance these critical IT infrastructures, thereby contributing to technological advancement and maintaining a competitive edge in defense capabilities.
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
Address: 7575 COLSHIRE DR TOWER 1, MCLEAN, VA, 22102
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: $34,172,076
Exercised Options: $34,172,076
Current Obligation: $34,172,076
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA862125DB001
IDV Type: IDC
Timeline
Start Date: 2025-06-30
Current End Date: 2026-06-29
Potential End Date: 2026-06-29 00:00:00
Last Modified: 2025-07-08
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