DoD's JBC-P BFT Network Services contract awarded to Northrop Grumman for over $189M over 5 years
Contract Overview
Contract Amount: $189,099,668 ($189.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2013-03-01
End Date: 2018-02-28
Contract Duration: 1,825 days
Daily Burn Rate: $103.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF JOINT BATTLE COMMAND-PLATFORM (JBC-P) BLUE FORCE TRACKING (BFT) NETWORK SERVICES
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $189.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF JOINT BATTLE COMMAND-PLATFORM (JBC-P) BLUE FORCE TRACKING (BFT) NETWORK SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Northrop Grumman Systems Corporation is the sole awardee for these network services. 4. The contract duration is 5 years, indicating a long-term need for these services. 5. The NAICS code 541519 suggests a broad range of 'Other Computer Related Services'. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without knowing the specific services included under 'Other Computer Related Services' and the scope of 'Blue Force Tracking Network Services'. The firm fixed price structure is generally favorable for cost control. However, the lack of detailed performance metrics or comparisons to similar contracts makes a definitive value assessment difficult. The total value of $189 million over five years averages to approximately $37.8 million annually, which requires further context to evaluate.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition', indicating that all responsible sources were permitted to submit a bid. The data shows 3 bids were received. While the number of bidders is relatively low, the 'full and open' designation suggests a deliberate effort to solicit broad market interest. The competitive process, even with a limited number of bids, should have contributed to price discovery and potentially a more favorable outcome for the government compared to sole-source or limited competition.
Taxpayer Impact: A full and open competition, even with a few bidders, generally provides a better opportunity for taxpayers to receive competitive pricing. This approach helps ensure that the government is not overpaying due to a lack of market alternatives.
Public Impact
Provides critical network services for the Department of Defense's Joint Battle Command-Platform (JBC-P) Blue Force Tracking (BFT) system. Enhances situational awareness and command and control capabilities for military personnel. Supports operational readiness and mission effectiveness across various military branches. The services are likely to have a nationwide and potentially global geographic impact, given the nature of military operations. The contract supports a specialized segment of the IT services workforce within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited transparency on specific performance metrics and service level agreements.
- The 'Other Computer Related Services' category is broad, potentially obscuring the exact nature of the work performed.
- Dependence on a single contractor (Northrop Grumman) for these critical network services.
- The contract's value and duration warrant close monitoring for cost efficiency over its lifespan.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Firm Fixed Price contract type shifts cost risk to the contractor.
- The contract supports a vital military capability (Blue Force Tracking).
- The duration of 5 years suggests a stable, long-term requirement.
Sector Analysis
This contract falls within the Information Technology (IT) and Defense sectors, specifically focusing on network services and command and control systems. The market for defense IT services is substantial, with significant government spending allocated to maintaining and upgrading communication and tracking systems. Comparable spending benchmarks would typically involve other large-scale network infrastructure and support contracts within the Department of Defense, often awarded to major defense contractors. The JBC-P BFT network is a critical component of military operations, making its reliable functioning paramount.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, it is unlikely that significant subcontracting opportunities for small businesses were mandated or are explicitly detailed in this summary. The focus appears to be on prime contractor performance. Further analysis would be needed to determine if any small business subcontracting plans were part of the award.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices, potentially involving the Defense Contract Management Agency (DCMA) for performance monitoring. Inspector General (IG) jurisdiction would apply in cases of suspected fraud, waste, or abuse. Transparency is generally facilitated through contract award databases like FPDS, but detailed operational oversight mechanisms are internal to the agency and contractor.
Related Government Programs
- Joint Battle Command-Platform (JBC-P)
- Blue Force Tracking (BFT)
- Defense Information Systems Agency (DISA) Contracts
- Northrop Grumman Defense Contracts
- IT Network Services Contracts
- Command and Control Systems
Risk Flags
- Potential for vendor lock-in due to specialized services.
- Lack of detailed performance metrics in summary data.
- Broad NAICS code may obscure specific service details.
- Limited number of bidders despite full and open competition.
Tags
department-of-defense, northrop-grumman-systems-corporation, it-services, network-services, command-and-control, blue-force-tracking, firm-fixed-price, full-and-open-competition, delivery-order, maryland, defense-information-systems-agency, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $189.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF JOINT BATTLE COMMAND-PLATFORM (JBC-P) BLUE FORCE TRACKING (BFT) NETWORK SERVICES
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 $189.1 million.
What is the period of performance?
Start: 2013-03-01. End: 2018-02-28.
What is the specific scope of 'Other Computer Related Services' under this contract, and how does it relate to the JBC-P BFT Network?
The NAICS code 541519, 'Other Computer Related Services,' is a broad category encompassing a wide range of IT services not elsewhere classified. For the JBC-P BFT Network Services contract, this likely includes services such as network design, implementation, maintenance, support, and potentially integration with other systems. Blue Force Tracking (BFT) systems are crucial for providing real-time location information of friendly forces to commanders and soldiers, enhancing situational awareness. Therefore, the 'other computer related services' would be directly supporting the operational integrity, connectivity, and functionality of this critical tracking network. Without more granular detail from the contract itself, it's difficult to pinpoint exact services, but they are fundamentally tied to ensuring the BFT network operates effectively.
How does the $189 million contract value compare to historical spending on similar BFT network services?
Comparing the $189 million contract value for JBC-P BFT Network Services requires context regarding the specific period and scope of services. Historical spending on BFT systems has varied significantly based on technological advancements, deployment scale, and evolving military requirements. For instance, earlier iterations of BFT systems might have had different contract structures and costs. To provide a meaningful comparison, one would need to analyze spending trends for similar network-centric warfare capabilities within the DoD over the contract's performance period (2013-2018) and potentially benchmark against other large-scale communication network contracts awarded during that timeframe. The average annual spend of approximately $37.8 million suggests a substantial, ongoing investment in maintaining and operating this critical capability.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?
The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for critical network services like those supporting the Joint Battle Command-Platform (JBC-P) Blue Force Tracking (BFT) network, KPIs would focus on network availability (uptime), latency, data throughput, security compliance, and response times for issue resolution. SLAs would define the acceptable thresholds for these metrics and the remedies or penalties if they are not met. The absence of this information in the summary limits a thorough assessment of contractor performance and the government's ability to enforce service quality. Such details are usually found within the contract's statement of work (SOW) or performance work statement (PWS).
What is Northrop Grumman's track record with similar large-scale defense network contracts?
Northrop Grumman Systems Corporation has a significant and extensive track record in delivering large-scale defense and IT solutions, including complex network-centric systems for the U.S. military. They are a major defense contractor involved in various programs requiring sophisticated communication, command and control, and information technology infrastructure. Their experience spans areas like airborne surveillance, electronic warfare, cybersecurity, and integrated battle management systems. While specific performance details for every contract are not publicly available, their continued success in securing and executing large, complex contracts with the Department of Defense suggests a demonstrated capability in managing such programs, including network services critical to military operations like BFT.
What are the potential risks associated with relying on a single contractor for these essential network services?
Relying on a single contractor, Northrop Grumman in this case, for essential JBC-P BFT network services presents several potential risks. Firstly, there's a risk of vendor lock-in, where the government may have limited leverage to negotiate future contracts or switch providers due to the specialized nature of the services and the contractor's deep integration. Secondly, a single point of failure exists; if the contractor experiences financial instability, operational issues, or significant performance degradation, the continuity of these critical services could be jeopardized. Thirdly, reduced competition in future procurements could lead to higher prices if the market is not actively cultivated. Finally, the government might miss out on innovations or efficiencies that could be brought by competing vendors.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $189,099,668
Exercised Options: $189,099,668
Current Obligation: $189,099,668
Subaward Activity
Number of Subawards: 184
Total Subaward Amount: $2,721,769,938
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F0165Y
IDV Type: FSS
Timeline
Start Date: 2013-03-01
Current End Date: 2018-02-28
Potential End Date: 2018-02-28 00:00:00
Last Modified: 2018-12-10
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