DoD's $30.3M Northrop Grumman Contract for Professional Services: A Deep Dive
Contract Overview
Contract Amount: $30,333,594 ($30.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2006-04-11
End Date: 2015-11-25
Contract Duration: 3,515 days
Daily Burn Rate: $8.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200608!602818!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRAC!GS23F9797H !C!N! !N!HC101306F2427! !20060411!20070410!064683464!008255408!016435559!N!NORTHROP GRUMMAN DEFENSE MISSI!12011 SUNSET HILLS ROAD !RESTON !VA!20190!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000006515245!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541990!A!B!6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $30.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200608!602818!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRAC!GS23F9797H !C!N! !N!HC101306F2427! !20060411!20070410!064683464!008255408!016435559!N!NORTHROP GRUMMAN DEFENSE MISSI!12011 SUNSET HILLS ROAD !RESTON !VA!20190!50000!001!11!WASHINGTON !DIST… Key points: 1. The contract, valued at $30.3 million, was awarded to Northrop Grumman for administrative management and general management consulting services. 2. Awarded under full and open competition, the contract aimed to leverage the best available solutions in the market. 3. The duration of the contract was 3515 days, indicating a long-term need for these services. 4. The primary sector for this spending is Defense, specifically within IT-related support. 5. Potential risks include vendor lock-in and the need for continuous performance monitoring to ensure value.
Value Assessment
Rating: fair
The contract's value of $30.3 million for professional services over nearly a decade suggests a significant investment. Benchmarking against similar large-scale consulting contracts within the DoD is necessary to determine if the pricing was competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically allows for the best price discovery. However, the specific details of the bidding process and the number of bidders are not provided, making a definitive assessment of price discovery challenging.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes competitive pricing. The ultimate taxpayer impact depends on the efficiency and effectiveness of the services rendered.
Public Impact
This contract supports critical defense information technology infrastructure, impacting national security operations. The long duration suggests a sustained need for specialized consulting expertise within the Department of Defense. The award to a major defense contractor like Northrop Grumman highlights the significant role of large corporations in government IT services. Taxpayers are funding essential but potentially costly professional services for defense agencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to cost overruns if not managed effectively.
- Potential for scope creep in professional services contracts.
- Reliance on a single large contractor for critical services.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Contract supports vital defense information technology functions.
- Experienced contractor with a track record in defense.
Sector Analysis
This contract falls within the Defense sector, specifically supporting IT functions. Spending benchmarks for administrative management and general management consulting services within the DoD can vary widely based on the complexity and duration of the engagement.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of small business participation or subcontracting in the provided data, suggesting this contract primarily benefits large businesses.
Oversight & Accountability
Oversight would typically be managed by the Defense Information Systems Agency (DISA) and the contracting officer. The long duration necessitates robust oversight to ensure performance, manage costs, and prevent scope creep.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Long contract duration increases risk of cost escalation.
- Potential for vendor lock-in.
- Lack of specific performance metrics in provided data.
- Limited insight into the competitive landscape beyond 'full and open'.
Tags
administrative-management-and-general-ma, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200608!602818!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRAC!GS23F9797H !C!N! !N!HC101306F2427! !20060411!20070410!064683464!008255408!016435559!N!NORTHROP GRUMMAN DEFENSE MISSI!12011 SUNSET HILLS ROAD !RESTON !VA!20190!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000006515245!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541990!A!B!6! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $30.3 million.
What is the period of performance?
Start: 2006-04-11. End: 2015-11-25.
What specific deliverables and performance metrics were established to ensure the value of the $30.3 million investment in consulting services?
The provided data does not detail specific deliverables or performance metrics. Effective oversight would require clearly defined milestones, quality standards, and key performance indicators (KPIs) tied to the administrative management and general management consulting services. Without these, assessing the true value and impact of the contract is difficult.
How did the full and open competition process ensure the most cost-effective solution was selected for these long-term consulting needs?
While 'full and open competition' suggests a broad solicitation, the effectiveness in ensuring cost-effectiveness depends on the number of bids received, the evaluation criteria used, and the negotiation process. Without details on the bidding landscape and evaluation outcomes, it's presumed that the process aimed for competitive pricing, but the actual cost-effectiveness requires further analysis of the proposals and final negotiated price.
What is the risk of vendor lock-in with Northrop Grumman for these critical IT consulting services over a 3515-day period?
A long contract duration like 3515 days inherently increases the risk of vendor lock-in. This can limit the agency's flexibility to adopt new technologies or switch providers if better or more cost-effective solutions emerge. Mitigation strategies would involve clear exit clauses, knowledge transfer requirements, and periodic reviews of the market landscape.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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)
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
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F9797H
IDV Type: FSS
Timeline
Start Date: 2006-04-11
Current End Date: 2015-11-25
Potential End Date: 2015-11-25 00:00:00
Last Modified: 2021-12-07
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