DoD's $92.5M Naval Undersea Warfare Center Contract Awarded to Northrop Grumman

Contract Overview

Contract Amount: $92,525,734 ($92.5M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2005-07-29

End Date: 2011-07-31

Contract Duration: 2,193 days

Daily Burn Rate: $42.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200510!059906!1700!N00253!NAVAL UNDERSEA WARFARE CENTER DI!N0017804D4091 !A!N! !Y!FY01 ! !20050729!20060731!064683464!008255408!016435559!N!NORTHROP GRUMMAN DEFENSE MISSI!12011 SUNSET HILLS ROAD !RESTON !VA!20190!56000!700!51!NEWPORT NEWS !NEWPORT NEWS (CITY) !VIRGINIA !+000001309400!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!D!20090331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !C!Z!A!A!000!A!C!N! ! ! ! !1700!N00178!0001! !

Place of Performance

Location: KEYPORT, KITSAP County, WASHINGTON, 98345, UNITED STATES OF AMERICA

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $92.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200510!059906!1700!N00253!NAVAL UNDERSEA WARFARE CENTER DI!N0017804D4091 !A!N! !Y!FY01 ! !20050729!20060731!064683464!008255408!016435559!N!NORTHROP GRUMMAN DEFENSE MISSI!12011 SUNSET HILLS ROAD !RESTON !VA!20190!56000!700!51!NEWPORT NEWS !NEWPORT NEWS (CITY) !VIRGINIA !+00000130… Key points: 1. Contract awarded for Engineering Technical Services to support naval undersea warfare. 2. Northrop Grumman Systems Corporation is the primary contractor. 3. The contract was awarded under full and open competition. 4. Significant duration of over 6 years indicates a long-term need for these services.

Value Assessment

Rating: fair

The contract value of $92.5M over 2193 days suggests a daily rate of approximately $42,191. This needs to be benchmarked against similar engineering services contracts for a precise assessment.

Cost Per Unit: $42,191

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. However, the specific details of the bidding and selection are not provided.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, but the ultimate value for money depends on the performance and cost management throughout the contract lifecycle.

Public Impact

Supports critical naval undersea warfare capabilities, impacting national security. Potential for technological advancements and innovation in undersea systems. Contract duration suggests sustained employment opportunities within the defense sector. Requires specialized engineering expertise, potentially driving demand for skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of detailed performance metrics in the provided data.
  • Potential for cost overruns in a Cost Plus Fixed Fee contract.
  • Limited insight into the specific deliverables and their impact.

Positive Signals

  • Awarded through full and open competition.
  • Supports a critical national security function.
  • Long contract duration may indicate stable demand for services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense and naval operations. Benchmarks for similar long-term, high-value engineering support contracts are crucial for a comprehensive value assessment.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further investigation would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight would typically be managed by the Department of the Navy, focusing on contract performance, cost control, and adherence to technical specifications. The provided data lacks specific oversight mechanisms.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Cost Plus Fixed Fee contract type increases risk of cost overruns.
  • Lack of detailed service descriptions limits scope assessment.
  • Long contract duration requires sustained oversight.
  • No explicit mention of small business participation.

Tags

engineering-services, department-of-defense, wa, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $92.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200510!059906!1700!N00253!NAVAL UNDERSEA WARFARE CENTER DI!N0017804D4091 !A!N! !Y!FY01 ! !20050729!20060731!064683464!008255408!016435559!N!NORTHROP GRUMMAN DEFENSE MISSI!12011 SUNSET HILLS ROAD !RESTON !VA!20190!56000!700!51!NEWPORT NEWS !NEWPORT NEWS (CITY) !VIRGINIA !+000001309400!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!D!20090331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !C!Z!A!A!000!A!C!N! ! ! ! !1700!N00178!0001! !

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 Navy).

What is the total obligated amount?

The obligated amount is $92.5 million.

What is the period of performance?

Start: 2005-07-29. End: 2011-07-31.

What specific engineering technical services are being provided under this contract, and how do they directly contribute to naval undersea warfare capabilities?

The contract is for 'ENGINEERING TECHNICAL SERVICES' under NAICS code 541330. While the specific services are not detailed, they likely encompass design, development, testing, and maintenance of systems related to naval undersea warfare. This could include sonar, underwater vehicles, communication systems, and related infrastructure, all crucial for maintaining a technological edge and operational effectiveness in the undersea domain.

Given the Cost Plus Fixed Fee (CPFF) contract type, what are the primary risks associated with cost control and potential overruns?

CPFF contracts carry inherent risks of cost overruns as the contractor is reimbursed for allowable costs plus a fixed fee. The government bears the risk of cost increases. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are critical to mitigate these risks and ensure the contract remains within budget expectations.

How does the $92.5 million contract value compare to similar engineering services contracts awarded by the Department of the Navy for undersea warfare support?

Without specific benchmarks for comparable contracts, it's difficult to definitively assess if $92.5 million is high or low. However, considering the long duration (over 6 years) and the specialized nature of undersea warfare support, this value appears reasonable for a significant, long-term engagement. A detailed market analysis of similar contracts would provide a more precise comparison.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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

Solicitation ID: N0002405R3149

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4091

IDV Type: IDC

Timeline

Start Date: 2005-07-29

Current End Date: 2011-07-31

Potential End Date: 2011-07-31 00:00:00

Last Modified: 2017-03-30

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