DoD's $128M JITC Mission Contract Awarded to Northrop Grumman for Engineering Services

Contract Overview

Contract Amount: $128,330,929 ($128.3M)

Contractor: Northrop Grumman Space & Mission Systems Corp.

Awarding Agency: Department of Defense

Start Date: 2007-08-28

End Date: 2010-02-28

Contract Duration: 915 days

Daily Burn Rate: $140.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIXED PRICE AWARD FEE

Sector: Defense

Official Description: JITC MISSION CONTRACT

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85670

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $128.3 million to NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP. for work described as: JITC MISSION CONTRACT Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Fixed Price Award Fee contract type implies performance incentives for the contractor. 3. The contract duration of 915 days (approx. 2.5 years) indicates a significant, ongoing need. 4. Awarded by the Defense Information Systems Agency (DISA), a key IT provider for the DoD. 5. Northrop Grumman, a major defense contractor, brings substantial experience to this engagement. 6. The contract's value of over $128 million positions it as a substantial investment in engineering services.

Value Assessment

Rating: good

The contract value of $128.3 million for engineering services over approximately 2.5 years appears reasonable given the nature of defense-related engineering projects. Benchmarking against similar large-scale engineering contracts within the Department of Defense would provide a more precise value-for-money assessment. However, the fixed-price award fee structure suggests an attempt to control costs while incentivizing performance, which is a positive sign for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 8 bids suggests a healthy level of competition for this significant engineering services contract. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The full and open competition process likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Defense Information Systems Agency, which receives critical engineering support. Services delivered likely include technical analysis, system design, integration, and testing to support military missions. The contract's performance location in Arizona suggests a direct impact on the local workforce and economy in that region. This contract supports the technological infrastructure and operational readiness of the U.S. military.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if award fee targets are not met or if scope creep occurs.
Reliance on a single large contractor may limit flexibility in adapting to rapidly changing technological needs.
The fixed-price award fee structure can sometimes lead to complex negotiations around performance metrics.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Northrop Grumman is a well-established defense contractor with a proven track record.
The fixed-price award fee structure incentivizes contractor performance and cost control.
The contract supports critical defense information systems, aligning with national security objectives.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader defense industrial base. The market for defense engineering services is substantial, driven by the continuous need for technological advancement and system sustainment. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by DoD agencies like DISA, focusing on the scope of services and contract values.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large prime contractor. Further analysis would be needed to determine if Northrop Grumman has a subcontracting plan in place to engage small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). The fixed-price award fee structure implies performance monitoring against defined metrics. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD IT Modernization Programs
Defense Information Systems Agency (DISA) Support Contracts
Engineering and Technical Services Contracts
Northrop Grumman Defense Contracts

Risk Flags

Potential for performance disputes related to award fee criteria.
Contract duration may not align with rapidly evolving technology needs.
Lack of explicit small business subcontracting noted in award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $128.3 million to NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP.. JITC MISSION CONTRACT

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN SPACE & MISSION SYSTEMS CORP..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $128.3 million.

What is the period of performance?

Start: 2007-08-28. End: 2010-02-28.

What is Northrop Grumman's track record with similar large-scale engineering contracts within the Department of Defense?

Northrop Grumman is a major defense contractor with extensive experience in providing engineering, technology, and mission support services to the Department of Defense and other government agencies. They have a long history of managing complex programs, including those involving advanced systems integration, cybersecurity, and space and mission systems. Their track record typically includes successful delivery on large, multi-year contracts, though like any large contractor, they may have faced scrutiny or challenges on specific projects. A detailed review of their past performance ratings and any contract disputes or awards would provide a more granular understanding of their capabilities and reliability for this specific JITC Mission Contract.

How does the $128.3 million contract value compare to similar engineering services contracts awarded by DISA or the DoD?

The $128.3 million contract value for engineering services over approximately 2.5 years positions this as a significant, but not exceptionally large, contract within the DoD's overall spending. DISA and other DoD components frequently award contracts in the tens to hundreds of millions of dollars for specialized engineering, IT, and technical support. To benchmark effectively, one would compare this contract's value against other definitive contracts for engineering services with similar durations and scopes awarded by DISA or related defense agencies. Factors like the specific technical domains (e.g., C4ISR, cybersecurity, network engineering) and the level of system complexity would influence comparability. Without more specific contract details, it appears to be within the expected range for substantial defense engineering support.

What are the primary risks associated with a Fixed Price Award Fee (FPAF) contract type for engineering services?

The Fixed Price Award Fee (FPAF) contract type presents a balance of risk and reward. For the government, the primary risk is that the contractor may focus efforts on achieving the award fee criteria, potentially at the expense of other important but unstated aspects of performance or innovation. There's also a risk of disputes over the evaluation of performance and the determination of the award fee amount. For the contractor, the risk lies in not meeting the performance targets, thereby forfeiting the award fee portion of the potential profit. Both parties share the risk of poorly defined performance metrics, which can lead to ambiguity and conflict. Effective management and clear communication of expectations are crucial to mitigate these risks.

What is the expected impact of this contract on the defense IT and engineering services market?

The award of this $128.3 million contract to Northrop Grumman for engineering services by DISA signifies continued government investment in critical defense IT infrastructure and support. It reinforces the position of large, established defense contractors in securing substantial portions of the defense budget. For the broader market, it indicates a demand for specialized engineering expertise within the defense sector. While this specific award goes to a prime contractor, it may create subcontracting opportunities for smaller, specialized firms. The contract's duration also suggests a stable, long-term need for these services, influencing strategic planning for companies operating in this space.

How has spending on engineering services by the Defense Information Systems Agency (DISA) evolved over time?

Analyzing historical spending patterns for engineering services by DISA would require access to detailed historical contract data. Generally, DISA's spending on engineering and technical support services has been substantial and has likely evolved in response to technological advancements, changing geopolitical landscapes, and modernization initiatives within the DoD. Spending may have increased with the growing complexity of military systems, the need for cybersecurity enhancements, and the push towards cloud computing and network-centric warfare. Conversely, shifts in defense priorities or budget constraints could lead to fluctuations. This $128.3 million contract represents a snapshot of DISA's investment in engineering capabilities during its award period.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

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

Address: 100 SUN AVENUE NE, STE-300, ALBUQUERQUE, NM, 87109

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $353,559,305

Exercised Options: $259,126,196

Current Obligation: $128,330,929

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline