DoD awards $12.9M for Non-Tactical Software Support to Northrop Grumman under Full and Open Competition
Contract Overview
Contract Amount: $12,911,496 ($12.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2008-03-03
End Date: 2013-03-02
Contract Duration: 1,825 days
Daily Burn Rate: $7.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: IT
Official Description: NON-TACTICAL SOFTWARE APPL. DEVELOPMENT, MODIFICATION, & MAINTENANCE SUPPORT
Place of Performance
Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23452
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $12.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: NON-TACTICAL SOFTWARE APPL. DEVELOPMENT, MODIFICATION, & MAINTENANCE SUPPORT Key points: 1. Significant contract value for software development and maintenance. 2. Northrop Grumman is a major defense contractor, indicating strong competition. 3. Risk associated with long-term software maintenance and potential cost overruns. 4. IT sector spending, specifically software services.
Value Assessment
Rating: fair
The contract type 'COST NO FEE' suggests the government aims to control costs, but the total award of $12.9M over 5 years needs careful monitoring for efficiency. Benchmarking against similar software development contracts is crucial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing mechanism ('COST NO FEE') requires close oversight to ensure value for money.
Taxpayer Impact: Full and open competition is intended to secure the best value for taxpayers. The $12.9M award suggests significant investment, and efficient execution is key to maximizing taxpayer benefit.
Public Impact
Ensures continued operation and modernization of critical non-tactical software applications. Supports Department of the Navy's operational capabilities through reliable software. Potential for innovation and improved efficiency in government software systems.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Long-term maintenance costs can escalate.
- Dependency on a single contractor for critical software.
Positive Signals
- Awarded through full and open competition.
- Supports essential Navy operations.
Sector Analysis
This contract falls within the IT sector, specifically software development and maintenance. Benchmarks for similar large-scale software support contracts vary widely based on complexity and duration, but $12.9M over five years is a substantial investment.
Small Business Impact
The contract was not awarded to a small business. There is no indication of small business subcontracting goals or participation in this specific award.
Oversight & Accountability
The 'COST NO FEE' contract type implies a need for robust government oversight to manage costs and ensure performance. The duration of the contract (5 years) necessitates ongoing monitoring of deliverables and expenditures.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns despite 'COST NO FEE' structure.
- Risk of vendor lock-in for critical software.
- Dependency on contractor's expertise for long-term maintenance.
- Ensuring software remains current with technological advancements.
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 $12.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. NON-TACTICAL SOFTWARE APPL. DEVELOPMENT, MODIFICATION, & MAINTENANCE SUPPORT
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 $12.9 million.
What is the period of performance?
Start: 2008-03-03. End: 2013-03-02.
What is the projected return on investment for this software development and maintenance contract?
The return on investment (ROI) is difficult to quantify precisely without specific performance metrics and defined objectives. However, the contract aims to ensure the continued functionality and potential modernization of non-tactical software, which indirectly supports operational efficiency and mission accomplishment for the Department of the Navy. A positive ROI would be realized if the software enhancements lead to cost savings, improved productivity, or enhanced security.
What are the primary risks associated with the long-term maintenance of non-tactical software applications?
Key risks include technological obsolescence, where software becomes outdated and difficult to maintain or integrate with newer systems. There's also the risk of escalating costs due to the complexity of legacy systems and the need for specialized expertise. Security vulnerabilities can emerge over time, requiring continuous patching and updates. Furthermore, vendor lock-in can limit future flexibility and potentially increase costs if competitive alternatives are not explored.
How effectively does the 'COST NO FEE' contract structure ensure value for taxpayer money in software development?
The 'COST NO FEE' structure aims to incentivize the contractor to manage costs efficiently, as their profit is fixed regardless of the actual costs incurred. This can be effective in controlling expenditures. However, it requires strong government oversight to ensure the contractor doesn't cut corners on quality or performance to maintain profitability. Regular performance reviews and clear deliverables are essential to guarantee value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002408R3016
Offers Received: 1
Pricing Type: COST NO FEE (S)
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
Financial Breakdown
Contract Ceiling: $110,361,592
Exercised Options: $24,638,002
Current Obligation: $12,911,496
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4091
IDV Type: IDC
Timeline
Start Date: 2008-03-03
Current End Date: 2013-03-02
Potential End Date: 2013-03-02 00:00:00
Last Modified: 2018-08-17
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