DoD awards $22.5M IT Support Services contract to Northrop Grumman under full and open competition
Contract Overview
Contract Amount: $22,506,693 ($22.5M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Defense
Start Date: 2007-09-30
End Date: 2011-06-30
Contract Duration: 1,369 days
Daily Burn Rate: $16.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IT TECHNICAL SUPPORT SERVICES
Place of Performance
Location: SCOTT AFB, ST. CLAIR County, ILLINOIS, 62225, UNITED STATES OF AMERICA
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $22.5 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: IT TECHNICAL SUPPORT SERVICES Key points: 1. Contract awarded to a large, established defense contractor. 2. Full and open competition suggests a competitive bidding process. 3. Time and Materials pricing model can pose cost control risks. 4. Spending occurred over a 4-year period, averaging $5.6M annually.
Value Assessment
Rating: fair
The contract's Time and Materials (T&M) pricing structure, while common for IT support, can lead to cost overruns if not closely managed. Benchmarking against similar T&M IT support contracts is crucial to assess if the $22.5M total value over four years represents a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing, though the T&M structure still requires diligent oversight to ensure value.
Taxpayer Impact: The competitive nature of the award aims to secure reasonable pricing for taxpayers. However, the T&M pricing model necessitates robust oversight to prevent potential cost escalations, ensuring taxpayer funds are used efficiently.
Public Impact
Ensures continued IT support for critical Department of Defense operations. Potential for cost increases due to the Time and Materials pricing model. Supports a major defense contractor, contributing to the defense industrial base. The long duration (4 years) implies a stable, ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing model
- Long contract duration
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition
- Awarded to a reputable contractor
Sector Analysis
This contract falls within the Information Technology sector, specifically IT technical support services for the Department of Defense. Annual spending of approximately $5.6M is moderate for large-scale government IT support contracts, which can range from a few million to hundreds of millions.
Small Business Impact
The data indicates the prime contractor is Northrop Grumman Information Technology Inc., a large business. There is no information provided on subcontracting to small businesses, which is a missed opportunity for small business participation.
Oversight & Accountability
The contract's Time and Materials pricing structure requires strong government oversight to manage costs effectively and ensure accountability. Without details on performance metrics or specific oversight mechanisms, it's difficult to fully assess accountability.
Related Government Programs
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Time and Materials pricing model risk
- Potential for cost overruns
- Lack of detailed performance metrics
- Limited visibility into small business subcontracting
Tags
department-of-defense, il, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.5 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. IT TECHNICAL SUPPORT SERVICES
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 $22.5 million.
What is the period of performance?
Start: 2007-09-30. End: 2011-06-30.
What were the specific performance metrics and service level agreements (SLAs) tied to this contract, and how were they monitored to ensure value for money?
The provided data does not include specific performance metrics or SLAs. Effective oversight of Time and Materials contracts relies heavily on clearly defined deliverables, rigorous performance monitoring, and established penalties for non-compliance. Without this information, assessing the contractor's performance and the true value delivered is challenging.
How did the Department of Defense manage the inherent risks of the Time and Materials pricing model to prevent cost overruns?
Managing T&M risks typically involves setting strong ceiling prices, requiring detailed cost justifications, implementing strict change order controls, and conducting regular audits. The Defense Information Systems Agency would need robust internal processes and skilled contracting officers to effectively control costs and ensure the $22.5M expenditure remained within reasonable bounds for the services rendered.
What was the competitive landscape like for these IT technical support services at the time of award, and did the full and open competition yield significant cost savings compared to other potential c
Full and open competition generally fosters a competitive environment, driving down prices. However, the T&M structure can obscure true cost savings compared to fixed-price contracts, as costs are variable. The actual savings would depend on the number of bidders, their proposed rates, and the efficiency of the government's negotiation and oversight processes.
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: Northrop Grumman Corporation (UEI: 967356127)
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $22,506,693
Exercised Options: $22,506,693
Current Obligation: $22,506,693
Parent Contract
Parent Award PIID: GS09K99BHD0009
IDV Type: GWAC
Timeline
Start Date: 2007-09-30
Current End Date: 2011-06-30
Potential End Date: 2011-08-31 00:00:00
Last Modified: 2015-09-25
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