GPS OCX Contract Awarded to Northrop Grumman for $201M in 2007
Contract Overview
Contract Amount: $201,113,404 ($201.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2007-11-21
End Date: 2012-09-25
Contract Duration: 1,770 days
Daily Burn Rate: $113.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: GLOBAL POSITIONING SYSTEMS NEXT GENERATION GROUND CONTROL (GPS - OCX)
Place of Performance
Location: CARSON, LOS ANGELES County, CALIFORNIA, 90746
Plain-Language Summary
Department of Defense obligated $201.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: GLOBAL POSITIONING SYSTEMS NEXT GENERATION GROUND CONTROL (GPS - OCX) Key points: 1. Significant investment in critical defense infrastructure. 2. Sole awardee suggests potential for limited competition. 3. Long-duration contract with cost-plus structure may pose cost escalation risks. 4. Sector is defense IT, a high-stakes and complex area.
Value Assessment
Rating: questionable
The award value of $201M is a starting point, but the contract's duration (1770 days) and cost-plus fixed fee structure indicate potential for significant cost growth beyond the initial award. Benchmarking is difficult without more granular cost data.
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 long duration and complexity of the GPS OCX program may have limited the number of viable bidders.
Taxpayer Impact: Taxpayer funds are being invested in a critical national security program. The cost-plus structure necessitates robust oversight to ensure value for money.
Public Impact
Modernization of essential GPS ground control systems. Ensures continued and enhanced satellite navigation capabilities for military and civilian users. Potential for technological advancements in space and ground segment integration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Overruns
- Schedule Delays
- Performance Risks
- Limited Competition
Positive Signals
- Critical National Security Asset
- Technological Advancement
- Full and Open Competition
Sector Analysis
This contract falls within the defense IT sector, specifically focusing on critical command and control systems for satellite navigation. Spending in this area is substantial due to national security requirements and technological complexity.
Small Business Impact
The data does not indicate specific subcontracting goals for small businesses on this contract. Large, complex defense IT programs often involve significant subcontracting, but the extent of small business participation is not detailed here.
Oversight & Accountability
The cost-plus fixed fee structure and long duration of this contract necessitate stringent oversight from the Department of the Air Force to manage costs, track progress, and ensure performance meets requirements.
Related Government Programs
- Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Overruns
- Schedule Delays
- Technical Complexity
- Program Management Challenges
- Potential for Scope Creep
Tags
radio-and-television-broadcasting-and-wi, department-of-defense, ca, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $201.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. GLOBAL POSITIONING SYSTEMS NEXT GENERATION GROUND CONTROL (GPS - OCX)
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 $201.1 million.
What is the period of performance?
Start: 2007-11-21. End: 2012-09-25.
What was the final cost of the GPS OCX program, and how did it compare to the initial award and subsequent projections?
The initial award was $201M in 2007. However, the GPS OCX program has famously experienced significant cost overruns and schedule delays, with total costs escalating into the billions of dollars. This highlights the challenges of large, complex defense acquisition programs and the limitations of initial award values.
What were the primary technical risks identified during the GPS OCX program's development, and how were they mitigated?
Key risks included the integration of new technologies, software development complexity, and ensuring interoperability with existing systems. Mitigation strategies likely involved phased development, rigorous testing, and close collaboration between Northrop Grumman and the Air Force, though challenges persisted.
How effectively did the full and open competition process ensure competitive pricing for the GPS OCX ground control system?
While the initial award was under full and open competition, the program's complexity and long-term nature may have limited sustained competition. The subsequent cost escalations suggest that initial pricing may not have fully captured the program's eventual scope and challenges, necessitating ongoing scrutiny.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 1800 GLENN CURTISS ST, CARSON, CA, 44
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $221,998,235
Exercised Options: $221,998,235
Current Obligation: $201,113,404
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-11-21
Current End Date: 2012-09-25
Potential End Date: 2012-09-25 00:00:00
Last Modified: 2012-10-03
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