DoD's $27M Northrop Grumman Contract for BPP Agile Capability Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $26,998,080 ($27.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-06-01
End Date: 2023-05-31
Contract Duration: 1,094 days
Daily Burn Rate: $24.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: BPP AGILE CAPABILITY
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $27.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: BPP AGILE CAPABILITY Key points: 1. The contract awarded to Northrop Grumman for BPP Agile Capability represents a significant investment of $27 million. 2. Competition details are unclear, raising questions about whether the full potential for cost savings was realized. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee structure and the lack of clear performance metrics. 4. The Engineering Services sector is broad, making direct comparison difficult without more specific service details.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed tightly. Without specific benchmarks for similar 'AGILE CAPABILITY' engineering services, assessing the value is difficult. The reported obligated amount of $26,998,079.98 warrants further investigation into cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION,' which is positive for price discovery. However, the specific nature of 'BPP AGILE CAPABILITY' might limit the pool of qualified bidders, potentially impacting the competitive intensity and final pricing.
Taxpayer Impact: The full taxpayer impact is uncertain without a clearer understanding of the value delivered relative to the cost. Effective competition is key to ensuring taxpayer funds are used efficiently.
Public Impact
Taxpayers may be paying a premium if the competitive process did not yield the lowest possible price for the services. The Department of Defense's ability to acquire advanced agile capabilities is crucial for national security, but cost-effectiveness is paramount. Lack of transparency in the specific deliverables and performance metrics makes it hard for the public to assess the contract's success.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize higher spending.
- Ambiguity in 'AGILE CAPABILITY' definition.
- Limited public information on performance metrics.
- Potential for contractor lock-in due to specialized services.
Positive Signals
- Awarded under full and open competition.
- Contract duration allows for sustained capability development.
- Managed by Defense Contract Management Agency, suggesting oversight.
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a broad category. Spending in this sector can vary widely based on the complexity and nature of the engineering required. Benchmarking requires detailed understanding of the specific 'AGILE CAPABILITY' being procured.
Small Business Impact
The data indicates this contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no explicit mention of small business participation or subcontracting goals, suggesting limited direct impact on small businesses for this specific award.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for contract administration and oversight. However, the effectiveness of this oversight in controlling costs and ensuring value for a CPFF contract needs continuous evaluation.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Ambiguity in service definition ('AGILE CAPABILITY').
- Lack of detailed performance metrics in provided data.
- Potential for limited competition despite 'full and open' designation.
- Significant contract value ($27M) requires close scrutiny.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. BPP AGILE CAPABILITY
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $27.0 million.
What is the period of performance?
Start: 2020-06-01. End: 2023-05-31.
How effectively was the 'BPP AGILE CAPABILITY' defined to ensure competitive bidding and prevent scope creep?
The definition of 'BPP AGILE CAPABILITY' is crucial. If it was too narrowly defined, it could have limited the number of bidders, reducing competition and potentially increasing costs. Conversely, if too broad, it risks scope creep and cost overruns. A clear, measurable definition is key to ensuring both effective competition and value for money.
What specific cost controls and performance metrics were implemented under the Cost Plus Fixed Fee structure to mitigate risk?
For CPFF contracts, robust cost controls and clearly defined performance metrics are essential to mitigate the risk of contractor inefficiency or overspending. The government should have established mechanisms to track costs, review expenditures, and link fee payments to achieved performance milestones. Without these, the risk of inflated costs is significant.
How does the final cost compare to industry benchmarks for similar agile capability development contracts?
Comparing the final cost of $27 million to industry benchmarks for similar agile capability development contracts is vital for assessing value. This requires detailed analysis of the specific services rendered, the technological complexity, and the duration of the contract. Without such benchmarks, it's difficult to determine if the government received a fair price.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 14119 SULLYFIELD CIR STE A, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,998,080
Exercised Options: $26,998,080
Current Obligation: $26,998,080
Subaward Activity
Number of Subawards: 121
Total Subaward Amount: $32,219,713
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA872318D0001
IDV Type: IDC
Timeline
Start Date: 2020-06-01
Current End Date: 2023-05-31
Potential End Date: 2023-05-31 00:00:00
Last Modified: 2025-07-28
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