Northrop Grumman awarded $11.7M for ADP Systems Development Services by GSA
Contract Overview
Contract Amount: $11,686,131 ($11.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: General Services Administration
Start Date: 2005-02-28
End Date: 2008-04-11
Contract Duration: 1,138 days
Daily Burn Rate: $10.3K/day
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: ADP SYSTEMS DEVELOPMENT SERVICES
Place of Performance
Location: CLEVELAND, CUYAHOGA County, OHIO, 44124
State: Ohio Government Spending
Plain-Language Summary
General Services Administration obligated $11.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ADP SYSTEMS DEVELOPMENT SERVICES Key points: 1. Contract awarded for custom computer programming services, indicating a need for specialized IT development. 2. The contract's cost-plus award fee structure suggests performance incentives were a key component. 3. A duration of 1138 days points to a significant, long-term project. 4. The contract was awarded under the Federal Acquisition Service, a common channel for IT procurements. 5. The North American Industry Classification System (NAICS) code 541511 confirms the focus on custom programming. 6. The contract was awarded in Ohio, potentially indicating a specific geographic focus for the services.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more detailed performance data and comparison points. The cost-plus award fee structure can sometimes lead to higher costs if not managed tightly, but it also allows for flexibility in complex development projects. Without knowing the specific deliverables and outcomes, it's difficult to definitively assess value for money. However, the total award amount of $11.7 million over nearly three years suggests a substantial investment in IT development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The provided data does not specify the competition level for this contract. It is unclear if it was competed fully and openly, through limited sources, or awarded sole-source. The number of bidders and the procurement method significantly impact price discovery and the potential for competitive pricing. Without this information, assessing the effectiveness of the competition is not possible.
Taxpayer Impact: The level of competition directly affects taxpayer value. Robust competition typically drives down prices and encourages innovation, leading to better use of public funds. Limited or sole-source awards may result in higher costs and reduced options for the government.
Public Impact
The primary beneficiaries are likely government agencies requiring custom software solutions for their operations. The services delivered involve the development of ADP (Automated Data Processing) systems. The geographic impact is indicated to be Ohio, suggesting the work may have been performed or managed from that state. Workforce implications could include the employment of software developers, project managers, and IT specialists.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee contracts can sometimes lead to cost overruns if not meticulously managed.
- Lack of transparency on competition level makes it difficult to assess if taxpayers received the best possible price.
- The specific nature of 'ADP Systems Development' can be broad, requiring detailed oversight to ensure alignment with agency needs.
Positive Signals
- Awarding to a known entity like Northrop Grumman suggests a level of trust in their capabilities for complex IT projects.
- The duration of the contract indicates a sustained need and commitment to the project's success.
- The Federal Acquisition Service is a specialized entity within GSA, implying a structured procurement process.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The IT services market is vast and highly competitive, with significant government spending allocated to software development, system integration, and IT support. Comparable spending benchmarks would typically involve analyzing other government contracts for similar IT development services, considering factors like contract type, duration, and the specific technologies involved. The market size for IT services is in the hundreds of billions annually.
Small Business Impact
The data indicates that small business participation (sb) was false and that it was not a small business set-aside (ss). This suggests the contract was likely awarded to a large business. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Without specific subcontracting requirements or reporting, the direct impact on small businesses is unclear, though large prime contractors often utilize small businesses for specialized support.
Oversight & Accountability
Oversight mechanisms for this contract would typically be managed by the contracting officer and the relevant program office within the General Services Administration. Accountability measures are often tied to the performance metrics outlined in the contract, especially given the cost-plus award fee structure. Transparency is generally facilitated through contract award databases like FPDS, which provide basic details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- IT Services
- Software Development
- Custom Programming
- Federal IT Procurement
- GSA Schedules
Risk Flags
- Lack of competition details
- Cost-plus award fee structure requires careful oversight
- Specific system deliverables not detailed
Tags
it-services, custom-programming, northrop-grumman, general-services-administration, federal-acquisition-service, cost-plus-award-fee, ohio, large-business, it-development, adp-systems
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $11.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ADP SYSTEMS DEVELOPMENT 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 $11.7 million.
What is the period of performance?
Start: 2005-02-28. End: 2008-04-11.
What specific ADP systems were developed under this contract, and what was their intended purpose?
The provided data identifies the contract as being for 'ADP SYSTEMS DEVELOPMENT SERVICES' under NAICS code 541511 (Custom Computer Programming Services). However, it does not specify the exact nature or purpose of the ADP systems developed. These systems could range from internal administrative tools to mission-critical operational platforms for various government functions. To understand the specific systems, one would need to consult the contract's statement of work (SOW) or related documentation. The General Services Administration (GSA) often procures IT services to support its own operations or those of other federal agencies through its Federal Acquisition Service.
How did the 'Cost Plus Award Fee' (CPAF) structure influence the final cost and performance?
A Cost Plus Award Fee (CPAF) contract is a type of cost-reimbursement contract where the contractor is reimbursed for all allowable costs plus a fee that has a fixed component and an award component. The award fee is earned based on the government's evaluation of the contractor's performance against pre-determined criteria. This structure incentivizes contractors to meet or exceed performance targets. For this $11.7 million contract with Northrop Grumman, the CPAF structure likely meant that the final fee paid to the contractor depended on how well they performed in developing the ADP systems. While it allows for flexibility and encourages high performance, it also requires robust government oversight to ensure costs remain reasonable and the award fee is justified.
What is the typical cost range for similar ADP systems development contracts awarded by GSA?
Determining a precise 'typical' cost range for ADP systems development contracts is complex due to the wide variation in project scope, complexity, duration, and technology. However, contracts for custom computer programming services (NAICS 541511) awarded by GSA can range from tens of thousands to hundreds of millions of dollars. This specific $11.7 million contract, awarded over approximately three years (1138 days), falls into a mid-range category for significant IT development projects. Benchmarking would require comparing it against contracts with similar durations, complexity levels, and specific service requirements, which are not detailed in the provided summary data.
What is Northrop Grumman's track record with GSA for IT development services?
Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in various technology and aerospace sectors, including IT services. Their track record with the General Services Administration (GSA) would likely include numerous contracts across different agencies and service areas. To assess their specific performance on ADP systems development for GSA, one would need to examine historical contract data, including past performance evaluations, any contract disputes, and the overall value and duration of their previous engagements with GSA. Generally, large contractors like Northrop Grumman are awarded significant contracts due to their established capabilities and capacity.
Were there any performance issues or contract modifications during the life of this contract?
The provided data summary does not include information on contract modifications, performance issues, or disputes related to this specific contract. Such details are typically found in more comprehensive contract databases or agency procurement files. Contract modifications can occur for various reasons, including changes in scope, adjustments to timelines, or funding updates. Performance issues would be reflected in the government's evaluation of the contractor, particularly relevant for a Cost Plus Award Fee contract. Without access to the full contract details or performance reports, it's impossible to determine if there were any significant issues or modifications.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 12900 FEDERAL SYSTEMS PARK DR, FAIRFAX, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,686,131
Exercised Options: $11,686,131
Current Obligation: $11,686,131
Parent Contract
Parent Award PIID: GS07T00BGD0066
IDV Type: GWAC
Timeline
Start Date: 2005-02-28
Current End Date: 2008-04-11
Potential End Date: 2008-04-11 00:00:00
Last Modified: 2014-02-20
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