Logistics and maintenance support for Qatar facilities awarded to Northrop Grumman for over $19.6 million

Contract Overview

Contract Amount: $19,636,391 ($19.6M)

Contractor: Northrop Grumman Enterprise Management Services Corporation

Awarding Agency: General Services Administration

Start Date: 2008-09-08

End Date: 2011-11-30

Contract Duration: 1,178 days

Daily Burn Rate: $16.7K/day

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE OBJECTIVE OF THIS TASK IS TO PROVIDE LOGISTICS AND MAINTENANCE SUPPORT FOR THE CURRENT COMMAND FORWARD HEADQUARTERS (CFH) LOCATION AT CAMP AS SAYLIYAH (CAS), QATAR AND FUTURE RELOCATION TO AL UDEID AB (AUAB), QATAR.

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $19.6 million to NORTHROP GRUMMAN ENTERPRISE MANAGEMENT SERVICES CORPORATION for work described as: THE OBJECTIVE OF THIS TASK IS TO PROVIDE LOGISTICS AND MAINTENANCE SUPPORT FOR THE CURRENT COMMAND FORWARD HEADQUARTERS (CFH) LOCATION AT CAMP AS SAYLIYAH (CAS), QATAR AND FUTURE RELOCATION TO AL UDEID AB (AUAB), QATAR. Key points: 1. Contract provides essential logistics and maintenance for U.S. military facilities in Qatar. 2. The contract spans over three years, indicating a sustained need for these services. 3. Services include support for current and future relocation of command headquarters. 4. The award was a Delivery Order under a larger contract vehicle. 5. The contractor, Northrop Grumman, is a major defense and aerospace company. 6. The contract type is Time and Materials, which can pose cost control challenges.

Value Assessment

Rating: fair

The total value of this delivery order is over $19.6 million. Without specific benchmarks for similar logistics and maintenance support contracts in the Middle East, a precise value-for-money assessment is difficult. However, the Time and Materials pricing structure suggests that costs could escalate if not closely managed, potentially impacting overall value. The duration of the contract (over three years) implies a significant scope of work, and the pricing should reflect the complexity and scale of the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this particular delivery order. It is unclear if it was competed among multiple vendors or if it was a sole-source award. The nature of delivery orders often depends on the terms of the parent contract under which they are issued. If the parent contract was competitively awarded, this delivery order might benefit from that initial competition.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Limited or sole-source awards may result in higher prices compared to those secured through robust, open competition.

Public Impact

U.S. military personnel stationed in Qatar benefit from reliable facility operations. Ensures continuity of operations for command forward headquarters. Supports the U.S. military presence and strategic objectives in the Middle East. Indirectly supports the local economy through contractor operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
Lack of transparency on competition level makes it difficult to assess price reasonableness.
Potential for scope creep given the nature of logistics and maintenance support.

Positive Signals

Contract awarded to a reputable and experienced defense contractor.
Supports critical U.S. military operations in a key geopolitical region.
Addresses both current and future operational needs through relocation support.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of the broader defense and government contracting industry. This sector encompasses a wide range of services necessary for the operation and maintenance of government facilities, including military bases. The market for such services is substantial, driven by the ongoing need for operational readiness and infrastructure support for government entities worldwide. Comparable spending benchmarks would typically involve analyzing other large-scale base operations and support contracts awarded by the Department of Defense.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this delivery order. Given the nature and scale of the services, it is possible that larger prime contractors like Northrop Grumman would be responsible for managing the overall contract, with potential for subcontracting to smaller businesses for specialized tasks. However, without explicit information, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would likely be managed by the contracting agency, the General Services Administration (GSA), and the requiring military command at Camp As Sayliyah and Al Udeid Air Base. Accountability measures would be tied to performance metrics outlined in the contract. Transparency is generally facilitated through contract award databases, though specific performance details and cost breakdowns may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management
Facilities Maintenance and Repair
Contingency Operations Support

Risk Flags

Time and Materials pricing structure
Lack of specific competition details
Potential for cost overruns in deployed environments

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $19.6 million to NORTHROP GRUMMAN ENTERPRISE MANAGEMENT SERVICES CORPORATION. THE OBJECTIVE OF THIS TASK IS TO PROVIDE LOGISTICS AND MAINTENANCE SUPPORT FOR THE CURRENT COMMAND FORWARD HEADQUARTERS (CFH) LOCATION AT CAMP AS SAYLIYAH (CAS), QATAR AND FUTURE RELOCATION TO AL UDEID AB (AUAB), QATAR.

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN ENTERPRISE MANAGEMENT SERVICES CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $19.6 million.

What is the period of performance?

Start: 2008-09-08. End: 2011-11-30.

What is Northrop Grumman's track record with similar logistics and maintenance contracts, particularly in overseas locations?

Northrop Grumman Enterprise Management Services Corporation, a subsidiary of Northrop Grumman Corporation, has a significant history of providing complex logistics, base operations, and maintenance support services to government and military clients, both domestically and internationally. They have been involved in large-scale contracts supporting military installations in various regions, including the Middle East. Their experience often encompasses a broad range of services such as facility management, supply chain operations, transportation, and technical support. While specific performance metrics for individual contracts are not always publicly detailed, their continued success in securing and performing on such contracts suggests a generally positive track record. However, a deeper dive into past performance reviews and any documented issues on similar overseas contracts would provide a more comprehensive assessment.

How does the $19.6 million cost compare to similar logistics and maintenance contracts for U.S. military facilities in the Middle East?

Benchmarking the $19.6 million cost for this specific delivery order against similar contracts in the Middle East requires access to detailed contract data and market analysis. Factors such as the scope of services, duration, specific location risks, and the prevailing economic conditions in Qatar significantly influence pricing. Contracts for base operations and logistics support in the Middle East can range widely, often in the tens or hundreds of millions of dollars, depending on the size and operational tempo of the supported facility. Without a direct comparison of contract line item details and service levels, it is challenging to definitively state whether this $19.6 million represents excellent, fair, or questionable value. However, given the strategic importance and operational demands of facilities like Camp As Sayliyah and Al Udeid Air Base, the cost appears to be within a plausible range for comprehensive support over the contract's period.

What are the primary risks associated with a Time and Materials (T&M) contract for logistics and maintenance support in a deployed environment?

Time and Materials (T&M) contracts, while offering flexibility, introduce several risks, particularly in deployed environments like Qatar. The primary risk is cost escalation, as the government pays for the actual labor hours and material costs incurred by the contractor. This can lead to budget overruns if work is inefficiently performed, if the scope of work expands without adequate controls, or if labor rates and material prices are higher than anticipated. For logistics and maintenance, unforeseen issues or a higher-than-expected demand for services can significantly drive up costs. Effective oversight, detailed work tracking, and robust management by the contracting officer's representative (COR) are crucial to mitigate these risks and ensure fair pricing and value for the taxpayer. Without stringent controls, T&M contracts can be less cost-predictable than fixed-price alternatives.

How does the relocation from Camp As Sayliyah to Al Udeid Air Base impact the scope and potential cost of this contract?

The relocation from Camp As Sayliyah to Al Udeid Air Base (AUAB) introduces significant complexity and potential cost implications for this logistics and maintenance support contract. The scope would need to encompass not only the ongoing support at the current location but also the planning, execution, and transition of services to the new AUAB facility. This could involve de-mobilization, re-mobilization, setup of new infrastructure, and potentially different logistical challenges at the new site. The contract's duration (ending November 2011) suggests this relocation was a planned event within its lifecycle. The 'future relocation' mentioned in the objective indicates that the contract was designed to accommodate this transition, likely through task orders or modifications that would detail the specific requirements and associated costs for the move and subsequent support at AUAB.

What is the significance of the 'Facilities Support Services' NAICS code (561210) in the context of this contract?

The North American Industry Classification System (NAICS) code 561210, 'Facilities Support Services,' is highly relevant as it defines the primary business activity for this contract. This code encompasses establishments primarily engaged in providing operating and maintaining facilities services for others, such as building management and maintenance services. For this contract, it signifies that Northrop Grumman is responsible for a broad range of activities essential to the functioning of the U.S. military command forward headquarters in Qatar. These services typically include a combination of repair and maintenance, custodial services, security, groundskeeping, and potentially other operational support functions necessary to ensure the facilities are safe, secure, and operational for military personnel.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 2411 DULLES CORNER PARK STE 140, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,854,217

Exercised Options: $20,089,569

Current Obligation: $19,636,391

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0028P

IDV Type: FSS

Timeline