GSA Awards Northrop Grumman $32.1M for Custom Computer Programming Services
Contract Overview
Contract Amount: $32,106,366 ($32.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: General Services Administration
Start Date: 2006-08-23
End Date: 2010-02-24
Contract Duration: 1,281 days
Daily Burn Rate: $25.1K/day
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SOFTWARE DEVELOPMENT
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
General Services Administration obligated $32.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SOFTWARE DEVELOPMENT Key points: 1. Contract awarded to a large, established defense contractor. 2. Significant contract value suggests complex or extensive software development needs. 3. Limited competition is likely given the specialized nature of the services. 4. The 'COST PLUS FIXED FEE' contract type can pose cost control risks.
Value Assessment
Rating: fair
The contract's 'COST PLUS FIXED FEE' structure requires careful monitoring to ensure costs remain reasonable and aligned with the fixed fee. Benchmarking against similar custom programming contracts is difficult without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type and specific service description suggest a potentially limited competition environment. Without further details on the solicitation process, it's hard to assess if full and open competition was pursued or if specific justifications for limited competition were made.
Taxpayer Impact: The total value of $32.1 million represents taxpayer funds allocated to software development. The effectiveness of this spending depends on the successful delivery of the contracted services and the value derived from the custom programming.
Public Impact
Taxpayers fund critical software development for government operations. The contract supports advanced technological capabilities within the federal government. Potential for long-term reliance on the awarded contractor for ongoing support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of transparency on competition method
- Potential for scope creep
Positive Signals
- Award to established contractor with relevant experience
- Specific NAICS code indicates specialized service
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming. Spending in this area is crucial for modernizing government systems and improving efficiency. Benchmarks vary widely based on project complexity and duration.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
Oversight would typically be managed by the General Services Administration (GSA) through its Federal Acquisition Service. Monitoring the 'COST PLUS FIXED FEE' aspects and ensuring deliverables meet requirements are key oversight functions.
Related Government Programs
- Custom Computer Programming Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of detail on competition method raises concerns about potential lack of best value.
- Potential for contractor to maximize costs to increase profit margin.
- Contract duration and value suggest significant resource commitment.
Tags
custom-computer-programming-services, general-services-administration, ut, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $32.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SOFTWARE DEVELOPMENT
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 $32.1 million.
What is the period of performance?
Start: 2006-08-23. End: 2010-02-24.
What was the primary objective and scope of this custom computer programming contract?
The primary objective was likely to develop or enhance specific software solutions for the General Services Administration. The scope would detail the custom programming services required, including design, development, testing, and potentially integration, tailored to the agency's unique operational needs and technical environment.
What were the justifications for the chosen contract type (Cost Plus Fixed Fee)?
Cost Plus Fixed Fee contracts are often used when the scope of work is not precisely defined at the outset, or when there is uncertainty in the cost of performance. This type allows the contractor to be reimbursed for allowable costs plus a fixed fee representing profit, but requires careful monitoring to prevent cost overruns.
How effectively did the GSA ensure fair and reasonable pricing given the contract type?
Ensuring fair and reasonable pricing with a CPFF contract relies heavily on robust GSA oversight, including detailed cost analysis, negotiation of the fixed fee, and continuous monitoring of incurred costs against the estimated cost. The agency must validate the necessity and allowability of all costs claimed by the contractor.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 12900 FEDERAL SYSTEMS PARK DR, FAIRFAX, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $49,610,680
Exercised Options: $32,106,366
Current Obligation: $32,106,366
Parent Contract
Parent Award PIID: GS07T00BGD0066
IDV Type: GWAC
Timeline
Start Date: 2006-08-23
Current End Date: 2010-02-24
Potential End Date: 2010-02-24 00:00:00
Last Modified: 2014-02-20
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