Northrop Grumman awarded $91.3M for security services at USAFCENT installations, a significant portion of logistics consulting spending
Contract Overview
Contract Amount: $91,336,350 ($91.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: General Services Administration
Start Date: 2011-05-03
End Date: 2016-11-02
Contract Duration: 2,010 days
Daily Burn Rate: $45.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SECURITY SERVICES AT USAFCENT INSTALLATIONS
Place of Performance
Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152
Plain-Language Summary
General Services Administration obligated $91.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SECURITY SERVICES AT USAFCENT INSTALLATIONS Key points: 1. The contract value represents a substantial investment in logistics consulting services for defense installations. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is provided by comparing this award to similar security service contracts. 5. The contract positions Northrop Grumman as a key provider of specialized logistics support. 6. The firm-fixed-price structure aims to control costs for the government.
Value Assessment
Rating: good
The $91.3 million award for security services at USAFCENT installations appears reasonable given the duration and scope. Benchmarking against similar large-scale security and logistics support contracts for military bases suggests that the pricing is competitive. The firm-fixed-price contract type indicates a commitment to cost control by the contractor. While specific per-unit cost data is not provided, the overall value aligns with the complexity and criticality of securing active military installations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not detailed, but the 'full and open' designation suggests a robust competitive process. This level of competition is generally expected to drive more favorable pricing and innovative solutions for the government, as contractors vie for the award.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the significant expenditure on essential security services.
Public Impact
USAFCENT installations and personnel benefit from enhanced security measures. The contract supports the delivery of critical security and logistics consulting services. The primary geographic impact is within the operational areas of USAFCENT. The contract likely supports a workforce skilled in security, logistics, and defense support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not clearly defined and managed.
- Reliance on a single large contractor could create dependency and limit future flexibility.
- Ensuring consistent service quality across all installations over the contract's duration.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- Firm-fixed-price contract type helps manage cost certainty for the government.
- Northrop Grumman's established presence and experience in defense contracting.
- The contract addresses critical security needs for a significant military command.
Sector Analysis
This contract falls within the broader professional, scientific, and technical services sector, specifically focusing on logistics consulting and security services. The market for defense-related support services is substantial, with significant government spending allocated annually. This award to Northrop Grumman is consistent with the trend of large, established defense contractors securing major support contracts for military operations and installations. Comparable spending benchmarks would include other large-scale base operations and security support contracts.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large prime contract awarded to a major defense contractor, the primary impact on the small business ecosystem would likely be through potential subcontracting opportunities. However, without specific subcontracting plans detailed in the award, it's difficult to assess the direct benefit to small businesses.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the General Services Administration and the Air Force. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Base Operations Support Services
- Logistics and Supply Chain Management
- Defense Security Services
- Information Technology Support Services
- Professional and Management Consulting Services
Risk Flags
- Contract duration is substantial, requiring careful performance monitoring.
- Firm-fixed-price contracts can shift risk to the contractor, potentially impacting service quality if not managed.
- Dependence on a single large contractor for critical services.
Tags
security-services, logistics-consulting, northrop-grumman, general-services-administration, usafcent, firm-fixed-price, full-and-open-competition, defense, south-carolina, delivery-order, professional-services
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $91.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SECURITY SERVICES AT USAFCENT INSTALLATIONS
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 $91.3 million.
What is the period of performance?
Start: 2011-05-03. End: 2016-11-02.
What is Northrop Grumman's track record with similar large-scale security and logistics contracts for the U.S. military?
Northrop Grumman has a long and extensive history of providing a wide array of services to the U.S. military, including complex logistics, security, and base support operations. They are a major defense contractor with numerous prime contracts across various branches of the armed forces. Their experience often involves managing large, geographically dispersed teams and sophisticated technological systems. While specific performance details for every contract are not always public, their continued success in securing and performing on large-value contracts suggests a generally positive track record in delivering required services, though like any large contractor, they may have faced challenges or scrutiny on specific programs.
How does the value of this contract compare to other security service contracts awarded by the GSA or DoD in recent years?
The $91.3 million value for this five-year contract (approximately $18.3 million annually) for security services at USAFCENT installations places it as a significant, but not exceptionally large, award within the context of major defense support contracts. Large-scale base operations and security contracts can range from tens of millions to hundreds of millions of dollars annually, depending on the scope, location, and duration. For instance, contracts for base support at major installations or for global logistics command can exceed this value considerably. This award is substantial enough to be a key contract for the provider but falls within the typical range for specialized support services at a significant military command.
What are the primary risks associated with a firm-fixed-price contract for complex security services?
The primary risk with a firm-fixed-price (FFP) contract for complex security services lies with the contractor. If the contractor underestimates costs, encounters unforeseen operational challenges, or experiences scope creep without a formal modification, they bear the financial burden. For the government, the risk is that the contractor might cut corners on quality or service to maintain profitability, or that the fixed price may not adequately reflect true market costs if competition was limited or flawed. However, FFP contracts are generally favored for their cost certainty for the government, provided the requirements are well-defined and the contractor has the capability to perform.
How effective are 'full and open competition' contract vehicles in ensuring competitive pricing for specialized government services like these?
Full and open competition is generally considered the most effective method for ensuring competitive pricing for specialized government services. By allowing all responsible sources to submit offers, it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive bids. This process encourages contractors to offer their best pricing and most innovative solutions to win the contract. While it doesn't guarantee the lowest possible price in all market conditions, it creates a strong incentive for price efficiency and value for money compared to sole-source or limited competition scenarios.
What is the historical spending trend for logistics consulting services (NAICS 541614) by the General Services Administration?
The provided data indicates this contract falls under NAICS code 541614 (Process, Physical Distribution, and Logistics Consulting Services). Historical spending data for this specific NAICS code by the GSA would require access to detailed federal procurement databases. However, generally, GSA's spending in this area supports its role in providing shared services and procurement solutions to other federal agencies. Spending trends are influenced by overall government needs for efficiency improvements, supply chain optimization, and operational support, particularly within defense and civilian agencies. Fluctuations can occur based on specific agency requirements and budget allocations.
What are the implications of awarding a large contract like this to a single prime contractor for future contracting opportunities?
Awarding a large contract like this to a single prime contractor, such as Northrop Grumman, can have several implications for future contracting. It solidifies the contractor's position and experience in that specific service area, potentially making them a stronger contender for future, similar contracts. It can also lead to a degree of contractor 'lock-in' for the government, making it more challenging or costly to switch providers later. For other potential contractors, it means competing against an incumbent with established performance history and potentially strong relationships, which can be a barrier. It also highlights the market demand for these services, potentially encouraging new entrants or existing competitors to build capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 4QBG57112015
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 4807 STONECROFT BLVD, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $91,336,350
Exercised Options: $91,336,350
Current Obligation: $91,336,350
Actual Outlays: $183,454
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS10F0162L
IDV Type: FSS
Timeline
Start Date: 2011-05-03
Current End Date: 2016-11-02
Potential End Date: 2016-11-02 00:00:00
Last Modified: 2023-05-11
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