GSA's $66.7M Contract for Computer Systems Design Services Awarded to Northrop Grumman
Contract Overview
Contract Amount: $66,759,321 ($66.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: General Services Administration
Start Date: 2003-12-18
End Date: 2008-12-18
Contract Duration: 1,827 days
Daily Burn Rate: $36.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: OTHER ADP & TELECOMMUNICATIONS SERVICES
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $66.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: OTHER ADP & TELECOMMUNICATIONS SERVICES Key points: 1. Contract value of $66.7 million over 5 years. 2. Awarded competitively, indicating potential for good pricing. 3. Northrop Grumman is a large, established defense contractor. 4. Services fall under IT/ADP, a significant government spending sector.
Value Assessment
Rating: good
The contract was awarded competitively, suggesting a reasonable price discovery process. However, the Cost Plus Fixed Fee (CPFF) structure can sometimes lead to higher costs if not carefully managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This was a competitive delivery order, indicating that multiple vendors were likely considered. The competitive nature should have driven a fair price, though the CPFF structure requires vigilance.
Taxpayer Impact: Taxpayer funds were used competitively, which is generally positive. The CPFF structure warrants monitoring to ensure cost efficiency.
Public Impact
Supports federal IT infrastructure and operations. Ensures availability of critical computer systems design services. Impacts government's ability to modernize and maintain technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can incentivize cost overruns.
- Long contract duration (5 years) may limit flexibility.
- Specific performance metrics not detailed in provided data.
Positive Signals
- Awarded competitively.
- Experienced contractor.
- Services are essential for government operations.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. Government spending in IT is substantial, with benchmarks varying widely based on service complexity and duration.
Small Business Impact
The awardee, Northrop Grumman, is a large business. There is no indication of small business participation in the provided data, which could be an area for improvement.
Oversight & Accountability
The General Services Administration (GSA) is responsible for this contract. GSA's Federal Acquisition Service typically manages such IT service contracts, implying established oversight processes.
Related Government Programs
- Computer Systems Design Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Cost Plus Fixed Fee structure
- Long contract duration
- Lack of small business participation noted
- Limited data on performance and cost efficiency
Tags
computer-systems-design-services, general-services-administration, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $66.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. OTHER ADP & TELECOMMUNICATIONS SERVICES
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 $66.8 million.
What is the period of performance?
Start: 2003-12-18. End: 2008-12-18.
What was the final cost compared to the initial estimate, and how did the CPFF structure impact cost efficiency?
Without the final cost data and initial estimates, a precise comparison is impossible. However, CPFF contracts inherently carry a risk of cost escalation if not rigorously managed. Post-award reviews and audits would be crucial to assess the efficiency and determine if the fixed fee adequately compensated the contractor for the risks undertaken.
Were there any performance issues or contract disputes during the 5-year period that impacted service delivery or cost?
The provided data does not contain information on performance issues or disputes. A thorough review would require access to contract performance reports, quality assurance assessments, and any records of formal or informal disagreements between GSA and Northrop Grumman.
How did the pricing for these computer systems design services compare to similar government or commercial contracts awarded during the same period?
Benchmarking is difficult without specific details on the services rendered and market rates at the time. However, the competitive award suggests the price was deemed fair at the outset. A post-award analysis comparing the negotiated rates against industry standards for similar complexity and scope would provide a clearer picture of value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 7575 COLSHIRE DR, MCLEAN, VA, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $66,759,321
Exercised Options: $66,759,321
Current Obligation: $66,759,321
Parent Contract
Parent Award PIID: GS00T99ALD0207
IDV Type: GWAC
Timeline
Start Date: 2003-12-18
Current End Date: 2008-12-18
Potential End Date: 2008-12-18 00:00:00
Last Modified: 2011-03-23
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