DoD Awards Northrop Grumman $22M for Network Systems Sustainment Through 2026
Contract Overview
Contract Amount: $21,986,478 ($22.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-08-26
End Date: 2026-03-25
Contract Duration: 576 days
Daily Burn Rate: $38.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: COMMON NETWORK PLANNING SYSTEMS SUSTAINMENT & ENHANCEMENT
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $22.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: COMMON NETWORK PLANNING SYSTEMS SUSTAINMENT & ENHANCEMENT Key points: 1. Contract value of $21.99M for sustainment and enhancement of critical network planning systems. 2. Awarded to Northrop Grumman Systems Corporation, a major defense contractor. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans 576 days, ending March 25, 2026. 5. Services fall under Computer Systems Design, a key IT sector.
Value Assessment
Rating: good
The contract value of $21.99M appears reasonable for sustainment and enhancement of complex network systems over an 18-month period. Benchmarking against similar large-scale IT sustainment contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently, with pricing likely driven by market forces rather than sole-source limitations.
Public Impact
Ensures continued operation and improvement of essential military network planning capabilities. Supports the Department of Defense's information infrastructure and operational readiness. Potential for technological advancements in network planning through enhancement efforts. Impacts military personnel relying on these systems for strategic planning.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in enhancement efforts.
- Dependence on a single vendor for critical sustainment.
- Cybersecurity risks associated with network infrastructure.
Positive Signals
- Utilizes full and open competition.
- Awarded for essential defense infrastructure.
- Clear contract duration and end date.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services, supporting the Department of Defense's extensive information technology infrastructure. Spending in this area is critical for maintaining operational capabilities and national security.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award, which is common for large, complex IT sustainment contracts.
Oversight & Accountability
The Defense Information Systems Agency (DISA) is responsible for this award. Oversight will likely involve performance monitoring, quality assurance, and adherence to contract terms to ensure successful delivery and value for money.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for vendor lock-in if enhancements create deep integration.
- Reliance on contractor for critical system knowledge.
- Cybersecurity vulnerabilities in legacy or new components.
- Scope creep leading to cost overruns.
- Performance issues impacting operational timelines.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. COMMON NETWORK PLANNING SYSTEMS SUSTAINMENT & ENHANCEMENT
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 $22.0 million.
What is the period of performance?
Start: 2024-08-26. End: 2026-03-25.
What specific enhancements are planned, and how will they improve network planning capabilities?
The contract details are limited, but 'enhancement' suggests upgrades to software, hardware, or functionalities of the COMMON NETWORK PLANNING SYSTEMS. These could include improved data processing, advanced simulation capabilities, better integration with other military systems, or enhanced user interfaces. The goal is likely to increase efficiency, accuracy, and adaptability of network planning in dynamic operational environments.
What are the primary cybersecurity risks associated with this contract, and how are they being mitigated?
Key risks include potential vulnerabilities in the network systems themselves, supply chain risks for any new components, and insider threats. Mitigation strategies typically involve strict cybersecurity protocols, regular security audits, penetration testing, secure software development practices, and adherence to DoD cybersecurity standards like CMMC. The contractor's security posture and compliance are crucial.
How does the sustainment and enhancement of these systems contribute to overall defense readiness and effectiveness?
Effective network planning is fundamental to modern military operations, enabling efficient deployment of resources, communication, and command and control. Sustaining and enhancing these systems ensures that military planners have reliable, up-to-date tools to design and manage complex communication and operational networks, directly impacting mission success and overall defense readiness in various scenarios.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - PLATFORM
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HC104717R0001
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $82,327,141
Exercised Options: $22,051,478
Current Obligation: $21,986,478
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $6,789,626
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC104718D2012
IDV Type: IDC
Timeline
Start Date: 2024-08-26
Current End Date: 2026-03-25
Potential End Date: 2029-04-25 00:00:00
Last Modified: 2025-12-17
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