GSA awards Northrop Grumman $384.7M for Counter Threat Messaging Support, raising questions on value and competition
Contract Overview
Contract Amount: $384,690,449 ($384.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: General Services Administration
Start Date: 2016-09-30
End Date: 2021-09-29
Contract Duration: 1,825 days
Daily Burn Rate: $210.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: COUNTER THREAT MESSAGING SUPPORT PROGRAM OASIS AWARD IGF::OT::IGF
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621
State: Florida Government Spending
Plain-Language Summary
General Services Administration obligated $384.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: COUNTER THREAT MESSAGING SUPPORT PROGRAM OASIS AWARD IGF::OT::IGF Key points: 1. Significant contract value ($384.7M) for specialized messaging support. 2. Northrop Grumman, a large defense contractor, is the sole awardee. 3. Potential risks include lack of competition and unclear cost-effectiveness. 4. The IT and Defense sectors are heavily influenced by such contracts.
Value Assessment
Rating: questionable
The contract's Cost Plus Award Fee structure makes assessing value difficult without detailed performance metrics. Benchmarking against similar specialized messaging support contracts is challenging due to the program's unique nature.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded under full and open competition, the award to a single entity, Northrop Grumman, suggests limited actual bidding or a highly specialized requirement. This lack of robust competition may have impacted price discovery.
Taxpayer Impact: Taxpayer funds totaling $384.7 million are allocated to this program, with the ultimate value dependent on the effectiveness of the counter-threat messaging.
Public Impact
The program aims to counter threats through strategic messaging, impacting national security communications. Awarding significant funds to a single large contractor raises concerns about equitable distribution and potential market concentration. Transparency in performance metrics and cost controls will be crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of demonstrated competition despite 'full and open' status.
- Cost Plus Award Fee structure can lead to cost overruns.
- Sole awardee to a large incumbent contractor.
- Limited public information on program effectiveness.
Positive Signals
- Addresses a critical national security need for counter-messaging.
- Long-term contract provides stability for program execution.
Sector Analysis
This contract falls within the Engineering Services sector, often associated with defense and intelligence support. Spending benchmarks for specialized counter-messaging programs are difficult to establish due to their unique and often classified nature.
Small Business Impact
The award to Northrop Grumman, a large prime contractor, indicates minimal direct benefit to small businesses through this specific contract. Subcontracting opportunities may exist but are not detailed here.
Oversight & Accountability
Oversight is likely managed by the General Services Administration (GSA) through the Federal Acquisition Service. The effectiveness of this oversight in controlling costs and ensuring performance for a Cost Plus Award Fee contract is a key accountability concern.
Related Government Programs
- Engineering Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Limited transparency on performance metrics and effectiveness.
- Risk of vendor lock-in with a single large contractor.
- Lack of clear evidence of robust competition.
- National security implications if messaging is ineffective or misdirected.
Tags
engineering-services, general-services-administration, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $384.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. COUNTER THREAT MESSAGING SUPPORT PROGRAM OASIS AWARD IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $384.7 million.
What is the period of performance?
Start: 2016-09-30. End: 2021-09-29.
What specific metrics define 'success' for counter-threat messaging, and how are these tied to the award fee structure?
The specific metrics for success are not publicly detailed but would likely involve the reach, impact, and effectiveness of the messaging campaigns in countering adversary narratives. These metrics are crucial for justifying the award fee component and ensuring the contractor is incentivized for demonstrable results rather than just effort.
How can the GSA ensure fair pricing and prevent cost overruns in a Cost Plus Award Fee contract with a single, large incumbent?
The GSA must implement rigorous oversight, including detailed audits of costs and performance. Establishing clear, objective performance standards and independent verification of results are essential. Benchmarking against industry standards for similar services, where possible, and negotiating firm fixed-price elements for specific deliverables can also mitigate risks.
What is the long-term strategy for evolving counter-messaging capabilities beyond this specific contract?
The long-term strategy likely involves continuous adaptation to the evolving threat landscape. This could include periodic re-competition of services, incorporating lessons learned into future requirements, and fostering innovation through research and development. Ensuring knowledge transfer and avoiding vendor lock-in are also critical for sustained capability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
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: $503,320,883
Exercised Options: $503,320,883
Current Obligation: $384,690,449
Subaward Activity
Number of Subawards: 916
Total Subaward Amount: $2,031,708,673
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU125
IDV Type: IDC
Timeline
Start Date: 2016-09-30
Current End Date: 2021-09-29
Potential End Date: 2021-09-29 00:00:00
Last Modified: 2022-08-05
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