DO 20: RAVEN X PHASE II awarded $27.4M to Northrop Grumman for software, with no competition
Contract Overview
Contract Amount: $27,394,705 ($27.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2019-08-27
End Date: 2022-04-30
Contract Duration: 977 days
Daily Burn Rate: $28.0K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: DO 20: RAVEN X PHASE II
Place of Performance
Location: AURORA, ARAPAHOE County, COLORADO, 80017
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $27.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DO 20: RAVEN X PHASE II Key points: 1. Significant award of $27.4M for software development. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Cost-plus fixed fee contract type may incentivize higher costs. 4. Long duration of 977 days for a delivery order. 5. No small business participation noted.
Value Assessment
Rating: questionable
The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs compared to fixed-price contracts if not managed closely. Benchmarking against similar software development contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government as there is no competitive pressure to offer the best price.
Taxpayer Impact: The lack of competition on a $27.4M award means taxpayers may not have received the best possible value for this software development effort.
Public Impact
Taxpayers may be overpaying due to the sole-source nature of the award. Lack of transparency in the procurement process. Potential for cost overruns with a CPFF contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
- No small business participation
Positive Signals
- Award to established contractor
- Specific software development need addressed
Sector Analysis
This award falls under the Software Publishers (NAICS 511210) sector. Spending in this sector is critical for defense modernization, but competitive bidding is crucial to ensure cost-effectiveness.
Small Business Impact
The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and potentially leverage innovative solutions they offer.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the contractor is delivering value and costs are reasonable. A review of the justification for not competing is recommended.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Long contract duration
- No small business involvement
- Potential for cost overruns
Tags
software-publishers, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. DO 20: RAVEN X PHASE II
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 $27.4 million.
What is the period of performance?
Start: 2019-08-27. End: 2022-04-30.
What was the specific justification for awarding this contract on a sole-source basis instead of competing it?
The justification for a sole-source award typically involves factors such as unique capabilities, urgent needs, or the unavailability of alternative sources. Without access to the specific justification document, it's impossible to determine the precise reasons. However, sole-source awards generally bypass competitive processes, potentially leading to higher costs and reduced innovation.
How can the Department of Defense ensure cost control and value for money on this Cost Plus Fixed Fee contract?
Effective cost control on a CPFF contract requires robust government oversight, including detailed cost monitoring, regular audits, and performance reviews. Establishing clear performance metrics and milestones, and ensuring the fixed fee is appropriately tied to performance, can incentivize the contractor to manage costs efficiently and deliver within budget.
What is the expected impact of this software on Air Force operations, and how does its value compare to potentially competed alternatives?
The specific operational impact of the RAVEN X PHASE II software is not detailed in the provided data. Assessing its value relative to potentially competed alternatives would require a thorough analysis of its capabilities, performance benefits, and cost-effectiveness. Without this information, it's difficult to ascertain if the sole-source award represents the best value for the Air Force.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 17455 E EXPOSITION DR, AURORA, CO, 80017
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,514,695
Exercised Options: $28,514,695
Current Obligation: $27,394,705
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $239,972
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA872614D0002
IDV Type: IDC
Timeline
Start Date: 2019-08-27
Current End Date: 2022-04-30
Potential End Date: 2022-04-30 00:00:00
Last Modified: 2022-04-21
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