DoD's $170.8M Task Order to Northrop Grumman for Custom Computer Programming Services Lacks Competition
Contract Overview
Contract Amount: $17,083,467 ($17.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2025-06-21
End Date: 2026-06-20
Contract Duration: 364 days
Daily Burn Rate: $46.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: JITTC-N FY 25/25 OY TASK ORDER
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $17.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: JITTC-N FY 25/25 OY TASK ORDER Key points: 1. Significant contract value awarded to a single large business. 2. Lack of competition raises concerns about potential overpricing and reduced innovation. 3. The contract is for custom computer programming, a critical IT service. 4. Awarded by the Department of the Air Force, indicating defense sector focus.
Value Assessment
Rating: questionable
The contract value of $170.8M for a 364-day duration is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar custom programming services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for these services, as there was no market pressure to drive down costs.
Public Impact
Taxpayers may be overpaying for essential IT services due to lack of competition. Potential for reduced innovation and quality if the contractor faces no market pressure. Critical defense IT infrastructure relies on this contract, highlighting the importance of efficient spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Awarded to a known defense contractor
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the IT sector, specifically custom computer programming. Benchmarks for similar services can vary widely, but competitive bidding is crucial for ensuring value.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication that small businesses were involved in this specific task order.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to understand the justification for the lack of competition and ensure fair pricing was still pursued.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Sole-source award
- Potential for overpricing
- Limited innovation incentive
- No small business participation evident
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 $17.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. JITTC-N FY 25/25 OY TASK 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 $17.1 million.
What is the period of performance?
Start: 2025-06-21. End: 2026-06-20.
What is the justification for not competing this $170.8M task order, and how was the price determined to be fair and reasonable without market comparison?
The justification for not competing this task order is not provided in the data. Typically, sole-source awards require a detailed justification, such as unique capabilities or urgent need. Without competitive bids, the contracting officer must rely on other methods to determine price reasonableness, such as historical pricing, commercial item pricing, or independent government cost estimates, which may not fully capture market value.
What are the potential risks associated with awarding a large IT services contract without competition to a single large business?
Awarding a large IT services contract without competition to a single large business carries several risks. These include the potential for inflated prices due to the lack of market pressure, reduced incentive for innovation and efficiency, and a lack of flexibility if the government's needs change. It also limits opportunities for other capable vendors, including small businesses, to compete for valuable work.
How does the firm fixed price contract type mitigate risks in a sole-source scenario for custom computer programming services?
A firm fixed price (FFP) contract type aims to shift risk to the contractor by establishing a set price for the work. In a sole-source scenario, FFP provides cost certainty for the government, protecting against cost overruns if the contractor's expenses increase. However, it does not guarantee the best possible price, as the initial price was not determined through competitive negotiation.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $17,083,467
Exercised Options: $17,083,467
Current Obligation: $17,083,467
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA862124DB001
IDV Type: IDC
Timeline
Start Date: 2025-06-21
Current End Date: 2026-06-20
Potential End Date: 2026-06-20 00:00:00
Last Modified: 2025-08-01
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