GSA Awards Northrop Grumman $29.9M for Business Partner Network Support
Contract Overview
Contract Amount: $29,902,080 ($29.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: General Services Administration
Start Date: 2007-09-01
End Date: 2012-11-30
Contract Duration: 1,917 days
Daily Burn Rate: $15.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: THE PURPOSE OF THIS EFFORT IS TO PROVIDE SUPPORT FOR THE BUSINESS PARTNER NETWORK SUPPORT ENVIRONMENT (BPNSE). THE SUPPORT CONSISTS OF HOSTING, DEVELOPMENT, OPERATIONS AND MAINTENANCE SUPPORT FOR WEB-ENABLED APPLICATIONS.
Place of Performance
Location: ALGONAC, SAINT CLAIR County, MICHIGAN, 48001
State: Michigan Government Spending
Plain-Language Summary
General Services Administration obligated $29.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THE PURPOSE OF THIS EFFORT IS TO PROVIDE SUPPORT FOR THE BUSINESS PARTNER NETWORK SUPPORT ENVIRONMENT (BPNSE). THE SUPPORT CONSISTS OF HOSTING, DEVELOPMENT, OPERATIONS AND MAINTENANCE SUPPORT FOR WEB-ENABLED APPLICATIONS. Key points: 1. Contract supports critical web-enabled application hosting, development, and maintenance. 2. Northrop Grumman, a major defense contractor, secured this award. 3. The contract was awarded under full and open competition. 4. Spending spans over 5 years, indicating a long-term need. 5. The IT sector, specifically computer systems design, is the focus.
Value Assessment
Rating: good
The Cost Plus Award Fee contract type allows for flexibility but requires careful monitoring of costs and performance to ensure value. The award amount of $29.9M over five years suggests a significant investment in IT support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which generally promotes competitive pricing and allows for a broad range of qualified vendors to bid. This method is expected to yield a fair market price.
Taxpayer Impact: Taxpayer funds are utilized for essential IT infrastructure support, ensuring the functionality of business partner networks.
Public Impact
Ensures continuity of essential business partner network services. Supports government's digital infrastructure and application accessibility. Facilitates efficient operations through reliable IT support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure requires diligent oversight to control costs.
- Long contract duration could lead to price increases if not managed.
Positive Signals
- Full and open competition likely resulted in competitive pricing.
- Award to established contractor suggests reliable service delivery.
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. The spending of $29.9M over five years is moderate for supporting a significant network environment.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific set-asides for small businesses. Therefore, the direct impact on small businesses is likely limited unless they are subcontractors.
Oversight & Accountability
The General Services Administration (GSA) managed this award. Oversight would focus on contract performance, cost management under the Cost Plus Award Fee structure, and adherence to service level agreements.
Related Government Programs
- Computer Systems Design Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost creep due to Cost Plus Award Fee structure.
- Reliance on a single large contractor for critical infrastructure.
- Lack of specific small business participation noted.
- Contract duration extends over a significant period, requiring sustained oversight.
Tags
computer-systems-design-services, general-services-administration, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $29.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THE PURPOSE OF THIS EFFORT IS TO PROVIDE SUPPORT FOR THE BUSINESS PARTNER NETWORK SUPPORT ENVIRONMENT (BPNSE). THE SUPPORT CONSISTS OF HOSTING, DEVELOPMENT, OPERATIONS AND MAINTENANCE SUPPORT FOR WEB-ENABLED APPLICATIONS.
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 $29.9 million.
What is the period of performance?
Start: 2007-09-01. End: 2012-11-30.
What were the key performance metrics used to determine award fees for Northrop Grumman?
The specific performance metrics are not detailed in the provided data. However, typical metrics for such contracts include system uptime, response times for development and maintenance requests, security compliance, and successful implementation of new features or upgrades. The agency would have established clear KPIs tied to the Business Partner Network Support Environment's operational needs.
How does the Cost Plus Award Fee structure compare to fixed-price contracts for similar IT support services in terms of risk and value?
Cost Plus Award Fee (CPAF) offers flexibility for evolving IT needs but carries higher risk of cost overruns if not tightly managed, compared to fixed-price contracts. While fixed-price provides cost certainty, it can be less adaptable to scope changes. CPAF aims to incentivize performance through award fees, potentially yielding better value if contractor performance is exceptional and oversight is robust.
What is the potential for cost savings or efficiency gains through this contract over its duration?
Potential cost savings and efficiency gains depend heavily on the contractor's performance and the agency's oversight. With a CPAF structure, incentives for efficiency are built-in via award fees. However, realizing these gains requires diligent monitoring of costs, performance metrics, and proactive management of the contract to ensure services are delivered effectively and economically.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,497,423
Exercised Options: $30,116,919
Current Obligation: $29,902,080
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00T99ALD0207
IDV Type: GWAC
Timeline
Start Date: 2007-09-01
Current End Date: 2012-11-30
Potential End Date: 2012-11-30 00:00:00
Last Modified: 2020-06-05
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