Defense IT contract awarded to Northrop Grumman for $18.77M, spanning over 4 years

Contract Overview

Contract Amount: $18,766,797 ($18.8M)

Contractor: Northrop Grumman Information Technology Inc

Awarding Agency: Department of Defense

Start Date: 2005-09-29

End Date: 2010-02-16

Contract Duration: 1,601 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TAS::97 0100::TAS 200512!006617!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRACT!GS09K99BHD0009 !C!N! !N!HC101305F3271! !20050929!20060929!064675833!064675833!016435559!N!NORTHROP GRUMMAN COMPUTING SYS!7501 GREENWAY CENTER DR !GREENBELT !MD!20770!68328!163!17!SCOTT AFB !ST. CLAIR !ILLINOIS !+000002254229!N!N!000000000000!D399!OTHER ADP&TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541519!E! !5!B!S! ! ! !20200930!B!E!Y!A! !A! !Y! !001!C! !Z! ! ! ! ! !C!N! ! ! !Z!Z!A!A!000! !B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: TAS::97 0100::TAS 200512!006617!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRACT!GS09K99BHD0009 !C!N! !N!HC101305F3271! !20050929!20060929!064675833!064675833!016435559!N!NORTHROP GRUMMAN COMPUTING SYS!7501 GREENWAY CENTER DR !GREENBELT !MD!20770!68328!163!17!SCOTT … Key points: 1. Contract value of $18.77 million represents a significant investment in defense IT infrastructure. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract's duration of over 4 years indicates a long-term need for the services. 4. Northrop Grumman's selection highlights its established position in the defense IT sector. 5. The 'Other ADP & Telecommunication Services' category suggests a broad scope of IT support. 6. Performance period ending in 2010 indicates the services are historical.

Value Assessment

Rating: fair

The contract value of $18.77 million for over four years of IT services appears within a reasonable range for large-scale defense contracts. However, without specific details on the services rendered and comparable contract benchmarks for similar scope and duration, a precise value-for-money assessment is challenging. The 'Time and Materials' pricing model can sometimes lead to cost overruns if not managed diligently, but it also offers flexibility for evolving requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process where multiple companies likely vied for the contract. The level of competition is generally expected to drive down prices and ensure the government receives competitive offers, though the specific number of bidders is not provided.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it promotes a competitive environment, which typically leads to better pricing and a wider array of innovative solutions being considered.

Public Impact

The primary beneficiaries are likely the Department of Defense and its personnel, who receive enhanced IT and telecommunication services. Services delivered include 'Other ADP & Telecommunication Services,' suggesting a wide range of IT support, potentially including network management, system integration, and communication infrastructure. The contract's geographic impact is centered around Scott Air Force Base, Illinois, indicating a focus on supporting operations at that location. Workforce implications may include the employment of IT professionals by Northrop Grumman to fulfill the contract's requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Time and Materials' pricing structure carries inherent risks of cost escalation if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
The contract's age (award in 2005, end in 2010) means current relevance and applicability of lessons learned are limited.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive selection process.
Northrop Grumman is a well-established contractor with significant experience in the defense sector.
The contract duration implies a sustained need and potential for stable service delivery.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on 'Other ADP & Telecommunication Services.' The defense IT market is a substantial segment of the broader IT industry, characterized by complex requirements, high security needs, and significant government spending. Comparable spending benchmarks would typically involve analyzing other large IT support contracts awarded by the Department of Defense or other federal agencies for similar services and durations.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature and scale of the contract, it is likely that large prime contractors like Northrop Grumman were the primary focus. Subcontracting opportunities for small businesses may have existed, but this information is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would have been managed by the contracting agency, the Defense Information Systems Agency (DISA), within the Department of Defense. Accountability measures would typically involve contract performance reviews, milestone tracking, and adherence to service level agreements. Transparency is generally facilitated through contract award databases, though detailed performance reports are often not publicly available.

Related Government Programs

Defense Information Technology Services
Telecommunications Support Contracts
IT Infrastructure Modernization Programs
Federal IT Services Procurement

Risk Flags

Potential for cost overruns due to Time and Materials pricing model.
Lack of specific performance metrics in summary data.
Contract completed in 2010, limiting current applicability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. TAS::97 0100::TAS 200512!006617!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRACT!GS09K99BHD0009 !C!N! !N!HC101305F3271! !20050929!20060929!064675833!064675833!016435559!N!NORTHROP GRUMMAN COMPUTING SYS!7501 GREENWAY CENTER DR !GREENBELT !MD!20770!68328!163!17!SCOTT AFB !ST. CLAIR !ILLINOIS !+000002254229!N!N!000000000000!D399!OTHER ADP&TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541519!E!

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2005-09-29. End: 2010-02-16.

What specific IT and telecommunication services were provided under this contract?

The contract is broadly categorized under 'Other ADP & Telecommunication Services.' This typically encompasses a wide range of IT support functions, which could include network design, implementation, and maintenance; cybersecurity services; data center operations; telecommunications equipment installation and support; and potentially software development or integration. Without more granular data, the precise nature of the services remains general, but it suggests comprehensive IT support tailored to the needs of the Defense Information Systems Agency and its supported entities, likely at or around Scott Air Force Base.

How does the $18.77 million contract value compare to similar IT contracts awarded by the DoD during that period?

The $18.77 million value for a contract spanning over four years (from late 2005 to early 2010) is substantial but not extraordinary within the context of large Department of Defense IT procurements. During the mid-2000s, the DoD was heavily investing in modernizing its IT infrastructure and communication networks. Contracts of this magnitude were common for providing comprehensive IT support, system integration, or specialized telecommunications services to major military bases or commands. Benchmarking would require comparing it against other 'Other ADP & Telecommunication Services' contracts or similar IT support vehicles awarded by DISA or other DoD components during the same timeframe, considering factors like contract duration, scope of work, and pricing models.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this contract are not detailed in the provided data. However, for a contract of this nature within the Department of Defense, typical SLAs would likely focus on network uptime and availability, response times for IT support requests, system performance metrics, data security compliance, and timely delivery of project milestones. The 'Time and Materials' pricing model suggests that performance might have been monitored through effort expended and deliverables met, rather than fixed-price outcomes, though adherence to defined service standards would still be crucial for contractor accountability.

What is Northrop Grumman's track record with the federal government, particularly the Department of Defense, for IT services?

Northrop Grumman has a long and extensive track record as a major contractor for the U.S. federal government, with a significant portion of its business dedicated to the Department of Defense. The company has consistently secured large, complex contracts across various domains, including IT services, cybersecurity, aerospace, and defense systems. Their history with the DoD includes providing a wide array of IT support, network infrastructure, command and control systems, and intelligence support. While this specific contract ended in 2010, Northrop Grumman has continued to be a dominant player in the defense IT landscape, undertaking numerous subsequent contracts.

Were there any notable challenges or issues encountered during the performance of this contract?

The provided data does not contain information regarding specific challenges or issues encountered during the performance of this contract. Contract performance issues, disputes, or modifications are typically documented in more detailed contract management files or agency inspection reports, which are not included here. Without access to such records, it is impossible to identify any notable problems that may have arisen during the contract's lifecycle.

How did the 'Time and Materials' pricing model influence the final cost and contractor incentives?

The 'Time and Materials' (T&M) pricing model allows the government to pay the contractor for the direct labor hours at specified hourly rates, plus the actual cost of materials. This model offers flexibility, especially when the scope of work is not clearly defined at the outset or is expected to evolve. However, it places a greater burden on the government to closely monitor labor hours and material costs to prevent overruns. For the contractor, T&M provides less incentive for efficiency compared to fixed-price contracts, as profit is often tied to the amount of effort expended. Effective government oversight is critical to ensure fair pricing and prevent scope creep under a T&M contract.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Parent Company: Titan II Inc. (UEI: 016435559)

Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS09K99BHD0009

IDV Type: GWAC

Timeline