Northrop Grumman received $35.6M for equipment repair systems data migration, a competitive delivery order
Contract Overview
Contract Amount: $35,663,840 ($35.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: General Services Administration
Start Date: 2009-02-18
End Date: 2012-08-17
Contract Duration: 1,276 days
Daily Burn Rate: $27.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: EQUIPMENT REPAIR SYSTEMS DATA MIGRATION PREPARATION SERVICES
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
General Services Administration obligated $35.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: EQUIPMENT REPAIR SYSTEMS DATA MIGRATION PREPARATION SERVICES Key points: 1. The contract value of $35.6M for data migration services appears substantial, warranting a review of the scope and deliverables. 2. Competition dynamics for this delivery order are noted as competitive, suggesting potential for price discovery. 3. The contract duration of 1276 days indicates a long-term engagement for complex data migration. 4. The use of Time and Materials pricing could introduce cost variability if not closely managed. 5. The specific NAICS code 541614 points to consulting services for process, physical distribution, and logistics. 6. The awarding agency, GSA, typically manages large-scale federal IT and service contracts.
Value Assessment
Rating: fair
Benchmarking the $35.6 million cost for data migration services is challenging without detailed scope information. However, the duration of over three years suggests a significant undertaking. The Time and Materials pricing structure, while flexible, carries inherent risks of cost escalation if not meticulously monitored and controlled by the government. Comparing this to similar large-scale data migration projects within the federal government would provide better context for value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The presence of competition is generally positive for ensuring fair pricing and encouraging efficient service delivery. The number of bids received would offer further insight into the level of competition and its impact on the final negotiated price.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.
Public Impact
Federal agencies requiring updated or migrated equipment repair systems benefit from improved data management and operational efficiency. The services delivered likely involve the transfer, validation, and integration of critical data from legacy systems to new platforms. The geographic impact is primarily within Ohio (ST: OH, SN: OHIO), where the contractor is located, but the benefits extend to federal operations nationwide. Workforce implications may include specialized IT and logistics personnel required for the data migration process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to Time and Materials pricing structure.
- Complexity of data migration can lead to unforeseen challenges and delays.
- Ensuring data integrity and security throughout the migration process is critical.
Positive Signals
- Awarded through a competitive process, suggesting potential for good value.
- Northrop Grumman is a large, established contractor with significant experience.
- The contract addresses a critical need for modernizing federal IT systems.
Sector Analysis
This contract falls within the IT services and consulting sector, specifically focusing on logistics and process improvement. The federal IT services market is vast, with significant spending on system modernization, data management, and cloud migration. This contract represents a portion of that broader investment aimed at enhancing operational capabilities within the General Services Administration and potentially other agencies relying on GSA's shared services.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the large contract value and the nature of the work, it is likely that larger, established prime contractors like Northrop Grumman would be involved, potentially with limited direct subcontracting opportunities for small businesses unless specifically mandated.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officers and program managers within the General Services Administration. Accountability measures would be tied to the contract's performance metrics and deliverables. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight information may not be publicly available.
Related Government Programs
- Federal IT Modernization Programs
- Logistics and Supply Chain Management Services
- Data Management and Migration Services
- General Services Administration IT Contracts
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Complexity of data migration.
- Data integrity and security risks.
Tags
it-services, consulting, logistics, data-migration, northrop-grumman, general-services-administration, competitive-delivery-order, time-and-materials, ohio, large-contract
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $35.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. EQUIPMENT REPAIR SYSTEMS DATA MIGRATION PREPARATION 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 $35.7 million.
What is the period of performance?
Start: 2009-02-18. End: 2012-08-17.
What was the specific scope of work for the 'EQUIPMENT REPAIR SYSTEMS DATA MIGRATION PREPARATION SERVICES' and how did it justify the $35.6 million cost?
The provided data does not detail the specific scope of work for the 'EQUIPMENT REPAIR SYSTEMS DATA MIGRATION PREPARATION SERVICES.' However, data migration projects of this magnitude, especially for complex systems like equipment repair, often involve extensive data cleansing, transformation, validation, and integration efforts. Preparation services can include analysis of legacy data structures, mapping data fields, developing migration scripts, and conducting test migrations. The $35.6 million cost over 1276 days (approximately 3.5 years) suggests a comprehensive and long-term effort, potentially involving multiple legacy systems, large data volumes, and stringent data quality requirements. Without a detailed statement of work, it's difficult to definitively assess the cost justification, but such projects are critical for modernizing federal IT infrastructure and improving operational efficiency.
How did Northrop Grumman Systems Corporation's past performance on similar contracts influence the award decision?
The provided data does not include specific details on Northrop Grumman Systems Corporation's past performance evaluations for this particular contract. However, as a major defense and aerospace contractor, Northrop Grumman typically possesses extensive experience in large-scale IT projects, including data migration, system integration, and logistics support. Federal agencies, including the General Services Administration (GSA), generally prioritize contractors with a proven track record of successful project completion, adherence to schedules, and quality delivery. It is highly probable that Northrop Grumman's demonstrated capabilities and past performance on comparable government contracts were significant factors in their selection for this delivery order, especially given the competitive nature of the award.
What are the potential risks associated with the Time and Materials (T&M) pricing structure for this contract?
The Time and Materials (T&M) pricing structure for this contract presents several potential risks. Primarily, it shifts a significant portion of the cost risk to the government. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used, plus a fixed fee or percentage for profit. This can lead to cost overruns if the project scope expands, if labor hours are not efficiently managed, or if the estimated effort is significantly underestimated. For the government, effective oversight and diligent monitoring of labor hours and material costs are crucial to prevent excessive spending. Without strong controls and clear task definitions, T&M contracts can become more expensive than initially anticipated.
How does this contract align with broader federal IT modernization goals and the GSA's role in facilitating them?
This contract aligns with broader federal IT modernization goals by addressing the critical need for updating and migrating essential systems, such as those related to equipment repair. Modernizing legacy systems improves efficiency, enhances data security, and reduces long-term maintenance costs. The General Services Administration (GSA), through its Federal Acquisition Service, plays a key role in facilitating these modernizations by providing acquisition solutions and expertise. By awarding contracts like this one, GSA enables agencies to acquire the necessary services to transition to more capable and cost-effective IT infrastructure, supporting the government's overall objective of a more agile and secure digital environment.
What is the historical spending pattern for 'Process, Physical Distribution, and Logistics Consulting Services' (NAICS 541614) by the General Services Administration?
Historical spending data for NAICS code 541614 by the General Services Administration (GSA) would reveal the agency's investment in consulting services related to logistics and process improvement. While this specific contract represents $35.6 million, understanding GSA's broader spending trends in this category over several fiscal years is important. This includes identifying if spending has been consistent, increasing, or decreasing, and whether GSA frequently procures these services competitively or through other means. Analyzing historical data can indicate the agency's reliance on external expertise for optimizing its operational and logistical functions and provide context for the significance of this particular award within GSA's overall procurement portfolio for consulting services.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 5TP57080353
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
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: $43,813,463
Exercised Options: $35,663,840
Current Obligation: $35,663,840
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS10F0162L
IDV Type: FSS
Timeline
Start Date: 2009-02-18
Current End Date: 2012-08-17
Potential End Date: 2012-08-17 00:00:00
Last Modified: 2019-12-17
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