Northrop Grumman's $10.3M IT contract for civil engineering automated systems shows fair value but limited competition
Contract Overview
Contract Amount: $10,333,066 ($10.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: General Services Administration
Start Date: 2006-07-31
End Date: 2009-06-30
Contract Duration: 1,065 days
Daily Burn Rate: $9.7K/day
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: THE OBJECTIVE OF THIS TASK TO PROVIDE INFORMATION TECHNOLOGY (IT) EXPERTISE IN SUPPORT OF HQ AFCESA/CEOI CIVIL ENGINEERING (CE) AUTOMATED SYSTEMS.
Place of Performance
Location: PANAMA CITY, BAY County, FLORIDA, 32403
State: Florida Government Spending
Plain-Language Summary
General Services Administration obligated $10.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THE OBJECTIVE OF THIS TASK TO PROVIDE INFORMATION TECHNOLOGY (IT) EXPERTISE IN SUPPORT OF HQ AFCESA/CEOI CIVIL ENGINEERING (CE) AUTOMATED SYSTEMS. Key points: 1. Contract provides essential IT support for civil engineering automated systems. 2. Pricing appears reasonable when benchmarked against similar custom programming services. 3. Limited competition raises concerns about optimal price discovery for taxpayers. 4. Contract duration of nearly three years suggests a stable, ongoing need. 5. Geographic concentration in Florida may indicate specific operational requirements. 6. Northrop Grumman's extensive experience in IT services is a positive signal.
Value Assessment
Rating: fair
The contract's total value of $10.3 million over approximately three years for IT expertise in civil engineering automated systems appears to be within a reasonable range for custom computer programming services. Benchmarking against similar contracts for IT support and development suggests that the pricing, while not explicitly detailed per unit, is likely fair given the specialized nature of the work. However, without more granular cost breakdowns or direct comparisons to highly competitive bids, a definitive assessment of 'excellent' value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under a limited competition framework, as indicated by the single award. While the specific reasons for limited competition are not detailed, it often suggests that only a few contractors possessed the necessary specialized skills or clearances required for the task. This limited pool of bidders can reduce the pressure on pricing and potentially lead to higher costs for the government compared to a full and open competition.
Taxpayer Impact: Limited competition means taxpayers may not have benefited from the most competitive pricing achievable through a broader bidding process. This could translate to a less efficient use of public funds if alternative, more cost-effective solutions were available but not considered.
Public Impact
The primary beneficiaries are the HQ AFCESA/CEOI Civil Engineering (CE) divisions, which receive enhanced automated systems support. Services delivered include crucial IT expertise for maintaining and improving critical automated systems. The contract's geographic impact is concentrated in Florida, where the services are likely performed. Workforce implications include the employment of IT professionals by Northrop Grumman to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have resulted in a higher price than achievable in a more open bidding environment.
- Lack of detailed performance metrics makes it difficult to fully assess the effectiveness and efficiency of the services provided.
- The contract's duration and value, while not excessive, warrant ongoing scrutiny to ensure continued alignment with agency needs and budget.
Positive Signals
- Northrop Grumman is a large, established defense contractor with significant IT expertise, suggesting a high likelihood of successful service delivery.
- The contract addresses a clear need for IT support in critical civil engineering automated systems, indicating strategic alignment.
- The award was made by the General Services Administration (GSA), a reputable agency known for managing federal procurement.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services. The market for such services is vast and highly competitive, with numerous large and small businesses offering specialized IT solutions to government agencies. Federal spending in this area is substantial, driven by the continuous need to modernize systems, enhance cybersecurity, and improve operational efficiency across all branches of government. This contract represents a portion of that broader IT spending, aimed at supporting a specific functional area within civil engineering.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major corporation, it is unlikely to have significant direct subcontracting opportunities for small businesses unless explicitly mandated or pursued by the prime contractor. The absence of small business participation in this specific award means that the direct economic benefits to the small business ecosystem from this particular contract are minimal.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer at the General Services Administration (GSA) and the program managers within HQ AFCESA/CEOI. Accountability measures are usually embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through federal procurement databases like FPDS, which record contract awards. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.
Related Government Programs
- Defense IT Modernization Programs
- Civil Engineering Support Services
- Custom Software Development Contracts
- GSA IT Schedule Contracts
- Federal Civilian Agency IT Services
Risk Flags
- Limited Competition
- Potential for Cost Overruns
- Performance Risk
- Cybersecurity Risk
Tags
it, general-services-administration, northrop-grumman-systems-corporation, custom-computer-programming-services, labor-hours, delivery-order, limited-competition, information-technology, defense-contractor, florida, civil-engineering-it
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $10.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THE OBJECTIVE OF THIS TASK TO PROVIDE INFORMATION TECHNOLOGY (IT) EXPERTISE IN SUPPORT OF HQ AFCESA/CEOI CIVIL ENGINEERING (CE) AUTOMATED SYSTEMS.
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 $10.3 million.
What is the period of performance?
Start: 2006-07-31. End: 2009-06-30.
What is Northrop Grumman's track record with similar IT service contracts for federal agencies?
Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in providing a wide range of IT services to various federal agencies. They have a long history of managing complex IT projects, including software development, system integration, cybersecurity, and IT support. Their track record generally includes successful delivery on large-scale contracts, though like any major contractor, they may have faced challenges or scrutiny on specific projects. For this particular contract, their established presence and capabilities in IT services suggest a strong foundation for meeting the requirements of HQ AFCESA/CEOI.
How does the value of this contract compare to other custom computer programming services procured by the government?
The contract's total value of approximately $10.3 million over nearly three years for custom computer programming services is substantial but falls within the typical range for specialized IT support for federal agencies. Benchmarking against similar contracts for IT expertise, particularly those involving system development and maintenance for critical infrastructure like civil engineering, suggests that this value is not exceptionally high or low. However, without specific details on the scope of work and labor hours, a precise comparison is challenging. The 'fair' value assessment is based on the general market rates for such specialized IT services.
What are the primary risks associated with this contract, and how are they mitigated?
Key risks include potential cost overruns if project scope expands, performance issues if the contractor fails to meet technical requirements, and security vulnerabilities if IT systems are not adequately protected. Mitigation strategies typically involve robust contract management by the GSA and the agency, including detailed performance work statements, regular progress reviews, and adherence to security protocols. The limited competition aspect also presents a risk of suboptimal pricing, which is partially mitigated by the government's negotiation process and oversight. The contractor's established reputation also serves as a mitigating factor for performance risk.
How effective has Northrop Grumman been in delivering IT services under this specific contract?
Assessing the effectiveness of Northrop Grumman's service delivery under this specific contract is challenging without access to detailed performance reports, user feedback, or agency evaluations. The provided data focuses on the contract award and basic details, not its execution. However, the contract's completion without major reported issues suggests a level of satisfactory performance. The objective was to provide IT expertise for civil engineering automated systems, and assuming the systems remained operational and improved, the contract likely met its core objectives. Further analysis would require access to performance metrics and agency assessments.
What are the historical spending patterns for IT support related to civil engineering automated systems within the Air Force Civil Engineer Support Agency (AFCESA)?
Historical spending patterns for IT support related to civil engineering automated systems within AFCESA would likely show a consistent need for such services, reflecting the ongoing reliance on technology for managing infrastructure and operations. Spending would fluctuate based on modernization initiatives, system upgrades, and the overall IT budget allocated to the agency. Contracts for custom programming and IT support are common, with durations often spanning multiple years to ensure continuity. Analyzing past contracts would reveal trends in vendor selection, contract values, and the evolution of IT requirements within AFCESA's civil engineering domain.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 12900 FEDERAL SYSTEMS PARK DR, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $10,350,038
Exercised Options: $10,333,066
Current Obligation: $10,333,066
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4522G
IDV Type: FSS
Timeline
Start Date: 2006-07-31
Current End Date: 2009-06-30
Potential End Date: 2009-06-30 00:00:00
Last Modified: 2021-12-05
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