Northrop Grumman Awarded $45M for MCEN Network Defense Services

Contract Overview

Contract Amount: $45,036,798 ($45.0M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: General Services Administration

Start Date: 2016-06-03

End Date: 2019-06-02

Contract Duration: 1,094 days

Daily Burn Rate: $41.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF THE PRIMARY PURPOSE OF THIS TASK ORDER IS TO SUPPORT MCNOSC IN CARRYING OUT THE TECHNICAL SUBSET OF THE DOCTRINAL DOD CNDSP FUNCTIONS OF PROTECTION DETECTION AND RESPONSE IN ORDER TO DISRUPT DENY AND DEGRADE NETWORK ADVERSARIES ABILITY TO INFLUENCE THE CONFIDENTIALITY INTEGRITY AVAILABILITY AUTHENTICATION AND NON-REPUDIATION OF IT SERVICES PROVIDED TO USERS ON THE MCEN AND JOINT NETWORKS.

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $45.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF THE PRIMARY PURPOSE OF THIS TASK ORDER IS TO SUPPORT MCNOSC IN CARRYING OUT THE TECHNICAL SUBSET OF THE DOCTRINAL DOD CNDSP FUNCTIONS OF PROTECTION DETECTION AND RESPONSE IN ORDER TO DISRUPT DENY AND DEGRADE NETWORK ADVERSARIES ABILITY TO INFLUENCE THE CONFIDENTIALIT… Key points: 1. Contract supports critical Department of Defense (DoD) Cyber Network Defense (CND) functions. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk is moderate, given the complexity of cyber defense and reliance on a single vendor for this task order. 4. Sector is Information Technology, specifically Computer Systems Design Services.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed tightly. Benchmarking against similar DoD cyber defense contracts 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 generally promotes competitive pricing. However, the specific task order award to Northrop Grumman suggests a competitive process for this particular requirement.

Taxpayer Impact: Taxpayer funds are being used to enhance national cybersecurity infrastructure, which is a critical public good. The effectiveness of spending will depend on the successful execution of the CND functions.

Public Impact

Enhances national cybersecurity for military networks (MCEN and Joint Networks). Supports protection, detection, and response against cyber adversaries. Aims to disrupt adversaries' ability to compromise IT services. Contributes to the overall security and readiness of military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • CPFF contract type can incentivize cost overruns.
  • Reliance on a single vendor for this specific task order.
  • Complexity of cyber defense operations requires robust oversight.

Positive Signals

  • Full and open competition utilized.
  • Supports critical national security functions.
  • Clear objectives for network defense.

Sector Analysis

This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is crucial for maintaining secure and operational government networks, especially within defense contexts. Benchmarks for similar cyber defense contracts are highly variable due to unique requirements and threat landscapes.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not primary awardees, though they may participate as subcontractors to Northrop Grumman.

Oversight & Accountability

Oversight is likely managed by the General Services Administration (GSA) Federal Acquisition Service and the requiring agency (MCNOSC). Robust oversight is essential for CPFF contracts to ensure cost control and performance effectiveness.

Related Government Programs

  • Computer Systems Design Services
  • General Services Administration Contracting
  • Federal Acquisition Service Programs

Risk Flags

  • Cost overruns potential with CPFF.
  • Vendor lock-in for critical cyber defense.
  • Complexity of cyber threats requires continuous adaptation.
  • Dependence on contractor's personnel expertise.
  • Potential for scope creep in evolving cyber landscape.

Tags

computer-systems-design-services, general-services-administration, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $45.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF THE PRIMARY PURPOSE OF THIS TASK ORDER IS TO SUPPORT MCNOSC IN CARRYING OUT THE TECHNICAL SUBSET OF THE DOCTRINAL DOD CNDSP FUNCTIONS OF PROTECTION DETECTION AND RESPONSE IN ORDER TO DISRUPT DENY AND DEGRADE NETWORK ADVERSARIES ABILITY TO INFLUENCE THE CONFIDENTIALITY INTEGRITY AVAILABILITY AUTHENTICATION AND NON-REPUDIATION OF IT SERVICES PROVIDED TO USERS ON THE MCEN AND JOINT NETWORKS.

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 $45.0 million.

What is the period of performance?

Start: 2016-06-03. End: 2019-06-02.

What is the specific performance metric used to evaluate the success of the protection, detection, and response functions?

The provided data does not specify the performance metrics for the CND functions. Effective oversight would require clearly defined metrics such as mean time to detect (MTTD), mean time to respond (MTTR), number of successful threat mitigations, and reduction in successful cyber intrusions. These metrics are crucial for assessing the value and effectiveness of the contract.

How is the fixed fee determined in this Cost Plus Fixed Fee (CPFF) contract, and what mechanisms are in place to prevent contractor inefficiency from increasing costs?

The fixed fee in a CPFF contract is negotiated at the outset and represents the contractor's profit. While the government pays actual allowable costs plus the fixed fee, mechanisms to prevent inefficiency include performance incentives, audits, and strict oversight of expenditures. The government's ability to manage scope and monitor performance is key to controlling costs.

What is the process for transitioning these critical cyber defense capabilities if a future contract is awarded to a different vendor?

Transitioning critical cyber defense capabilities requires meticulous planning to ensure continuity of operations and security. This typically involves phased handovers, knowledge transfer sessions, and joint testing. The contract likely includes clauses for transition assistance, and the government would manage the process to minimize disruption and security gaps.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design 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: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,775,869

Exercised Options: $47,775,869

Current Obligation: $45,036,798

Subaward Activity

Number of Subawards: 327

Total Subaward Amount: $210,554,856

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0056

IDV Type: GWAC

Timeline

Start Date: 2016-06-03

Current End Date: 2019-06-02

Potential End Date: 2019-06-02 00:00:00

Last Modified: 2020-03-03

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