DoD's $44.6M Joint Mission Planning System contract awarded to Northrop Grumman for engineering services
Contract Overview
Contract Amount: $44,611,606 ($44.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-03-29
End Date: 2026-03-28
Contract Duration: 1,825 days
Daily Burn Rate: $24.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: JOINT MISSION PLANNING SYSTEM (JMPS) LEGACY SUSTAINMENT AGILE TASK ORDER
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $44.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: JOINT MISSION PLANNING SYSTEM (JMPS) LEGACY SUSTAINMENT AGILE TASK ORDER Key points: 1. Contract awarded to a single, large incumbent provider. 2. Significant duration of 5 years suggests long-term sustainment needs. 3. Contract type is Time and Materials, which can pose cost control challenges. 4. Task order awarded under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. Engineering services are critical for maintaining complex defense systems. 6. The contract is for sustainment, indicating a focus on maintaining existing capabilities rather than developing new ones.
Value Assessment
Rating: fair
The contract's value of $44.6 million over five years for sustainment of a mission planning system appears reasonable given the complexity of defense systems. However, the Time and Materials (T&M) pricing structure warrants close monitoring to ensure cost efficiency. Benchmarking against similar sustainment contracts for complex software and engineering services would provide a clearer picture of value for money. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, it is a delivery order under an existing IDIQ contract, which may limit the pool of potential bidders to those already on the IDIQ. The number of bids received (2) suggests a moderate level of competition for this specific task order.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and innovation. However, with only two bidders, the potential for significant price reductions may be limited compared to scenarios with more robust competition.
Public Impact
Provides critical mission planning capabilities for Department of Defense (DoD) personnel. Ensures the continued operational readiness of air and space forces. Supports the development and maintenance of software and systems essential for national security. Impacts military readiness and strategic planning across various operational theaters. Sustains a complex technological infrastructure vital for modern warfare.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost overruns if not closely managed.
- Limited competition (2 bidders) may reduce pressure on pricing.
- Long contract duration (5 years) requires sustained oversight to ensure continued value.
- Reliance on a single incumbent contractor for sustainment could create vendor lock-in.
Positive Signals
- Awarded under full and open competition, suggesting a fair process.
- Focus on sustainment indicates a commitment to maintaining critical defense capabilities.
- Engineering services are essential for the complex systems involved.
- The contract supports a vital national security function.
Sector Analysis
The Joint Mission Planning System (JMPS) falls within the broader defense engineering services sector, which is characterized by high technical complexity, stringent security requirements, and significant government spending. This sector is dominated by large, established defense contractors. The market size for defense engineering and sustainment services is substantial, with billions of dollars allocated annually. This contract represents a portion of the DoD's ongoing investment in maintaining and upgrading its mission-critical IT and software systems.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Northrop Grumman Systems Corporation, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Air Force, a component of the Department of Defense. Mechanisms likely include contract performance reviews, milestone tracking, and financial audits. The Time and Materials nature of the contract necessitates rigorous oversight of labor hours and material costs. Transparency is generally maintained through contract reporting systems, though specific details of performance and cost may be sensitive.
Related Government Programs
- Joint Mission Planning System (JMPS)
- Defense Engineering Services
- Air Force IT Sustainment Contracts
- Northrop Grumman Defense Contracts
- Time and Materials Contracts in Defense
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Limited competition may impact price competitiveness.
- Long contract duration requires sustained oversight.
- Reliance on incumbent contractor.
Tags
department-of-defense, department-of-the-air-force, northrop-grumman-systems-corporation, engineering-services, it-services, sustainment, time-and-materials, full-and-open-competition, delivery-order, long-term-contract, national-security, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. JOINT MISSION PLANNING SYSTEM (JMPS) LEGACY SUSTAINMENT AGILE 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 $44.6 million.
What is the period of performance?
Start: 2021-03-29. End: 2026-03-28.
What is the historical spending trend for the Joint Mission Planning System (JMPS) legacy sustainment?
Historical spending data for the JMPS legacy sustainment prior to this specific task order is not directly provided in the abbreviated data. However, the award of a 5-year, $44.6 million delivery order suggests a consistent and significant need for sustainment services. Typically, sustainment contracts for complex defense systems involve ongoing costs for software updates, hardware maintenance, technical support, and system integration. The previous spending would likely reflect similar activities, potentially under different contract vehicles or task orders. Analyzing past performance reports and contract histories for JMPS would reveal trends in funding allocation, contractor performance, and any significant changes in sustainment requirements over time.
How does the pricing structure (Time and Materials) compare to other sustainment contracts for similar defense systems?
Time and Materials (T&M) contracts are common in defense sustainment, particularly for services where the scope of work can be unpredictable or evolve rapidly, such as software maintenance and engineering support. Compared to fixed-price contracts, T&M offers flexibility but carries a higher risk of cost overruns if not meticulously managed. For similar defense IT sustainment contracts, T&M is often used for tasks involving research, development, or unforeseen troubleshooting. However, agencies increasingly prefer firm-fixed-price or cost-plus-fixed-fee structures for predictable sustainment activities to ensure better cost control. The benchmark for 'value' in T&M relies heavily on the contractor's ability to efficiently utilize labor and materials, and the government's robust oversight to prevent scope creep and unnecessary charges.
What are the key performance indicators (KPIs) used to measure the success of this contract?
Specific Key Performance Indicators (KPIs) for this JMPS legacy sustainment task order are not detailed in the provided data. However, typical KPIs for defense IT sustainment contracts include system availability (uptime), response times for technical support, successful deployment of software updates, resolution rates for reported issues, and adherence to security protocols. For a mission planning system, critical KPIs would likely focus on the reliability and accuracy of the planning tools, the speed at which new threat data or operational parameters can be integrated, and the overall system performance under operational load. The government's contract administration team would monitor these KPIs to ensure the contractor meets its obligations and delivers the expected level of service.
What is Northrop Grumman's track record with similar defense sustainment contracts?
Northrop Grumman Systems Corporation has an extensive track record of performing large-scale defense sustainment and engineering services contracts for the U.S. Department of Defense and other government agencies. They are a major prime contractor on numerous complex programs involving aircraft, space systems, C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), and IT infrastructure. Their experience typically includes managing long-term sustainment efforts, providing software development and maintenance, and ensuring system integration and operational readiness. While specific performance details for every contract are not publicly available, their continued success in winning and executing large, critical contracts suggests a generally positive performance history, though like any large contractor, they may have faced challenges or scrutiny on specific programs.
What are the potential risks associated with the long duration (5 years) and Time and Materials (T&M) nature of this contract?
The primary risk associated with the 5-year duration and T&M pricing of this contract is cost escalation. T&M contracts allow costs to fluctuate based on the actual labor hours and materials used, making it difficult to predict the final cost. Over a 5-year period, this unpredictability can be amplified, especially if requirements change or if oversight is not stringent. Risks include potential for contractor inefficiency, scope creep where tasks expand beyond the original intent without adequate cost controls, and 'vendor lock-in' if alternative solutions are not explored. To mitigate these risks, the government must implement robust oversight, including detailed reviews of timesheets and invoices, regular performance evaluations, and potentially incorporating cost-ceiling mechanisms or incentivizing efficiency within the T&M framework.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $97,608,969
Exercised Options: $97,608,969
Current Obligation: $44,611,606
Subaward Activity
Number of Subawards: 101
Total Subaward Amount: $35,156,329
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU325
IDV Type: IDC
Timeline
Start Date: 2021-03-29
Current End Date: 2026-03-28
Potential End Date: 2026-03-28 00:00:00
Last Modified: 2026-03-09
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