DoD Awards Northrop Grumman $58M for GCCS-J Software Sustainment and Modernization
Contract Overview
Contract Amount: $58,045,847 ($58.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-09-01
End Date: 2026-02-06
Contract Duration: 889 days
Daily Burn Rate: $65.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: GLOBAL COMMAND AND CONTROL SYSTEM JOINT SOFTWARE SUSTAINMENT AND MODERNIZATION. MISSION CRITICAL ENGINEERING, SOFTWARE DEVELOPMENT, AND CYBER-SECURITY INFORMATION ASSURANCE SUPPORT.
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $58.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: GLOBAL COMMAND AND CONTROL SYSTEM JOINT SOFTWARE SUSTAINMENT AND MODERNIZATION. MISSION CRITICAL ENGINEERING, SOFTWARE DEVELOPMENT, AND CYBER-SECURITY INFORMATION ASSURANCE SUPPORT. Key points: 1. Contract focuses on mission-critical engineering, software development, and cybersecurity for the Global Command and Control System Joint. 2. Northrop Grumman Systems Corporation is the sole awardee, raising questions about competition. 3. The contract spans nearly three years, indicating a significant investment in maintaining and upgrading a key defense system. 4. The IT sector, specifically defense-related software and cybersecurity, is a major area of federal spending.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar large-scale software sustainment contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, Northrop Grumman is the sole awardee, which warrants further investigation into the bidding outcomes and price discovery.
Taxpayer Impact: Taxpayer funds are being used to ensure the continued operational effectiveness and modernization of a critical joint command and control system.
Public Impact
Ensures the continued functionality of a vital system for military command and control. Supports modernization efforts to keep pace with evolving technological threats and requirements. Invests in cybersecurity to protect sensitive military information and operations. Provides long-term sustainment for a complex and critical software system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Cost Plus Fixed Fee contract type.
- Lack of transparency on specific cost drivers for software sustainment and modernization.
- Sole awardee despite full and open competition may indicate limited vendor participation or specific technical requirements.
Positive Signals
- Addresses mission-critical needs for a key defense system.
- Focuses on essential software sustainment and modernization.
- Includes cybersecurity assurance as a core component.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on software development, engineering, and cybersecurity for defense applications. Spending in this area is substantial as the DoD modernizes its systems.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee is a large corporation. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure the contractor delivers on the modernization and cybersecurity requirements effectively within budget.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Sole awardee despite full and open competition raises concerns about competitive landscape.
- Lack of detailed cost breakdown makes independent cost validation challenging.
- Long-term sustainment of complex software systems can be prone to scope creep.
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 $58.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. GLOBAL COMMAND AND CONTROL SYSTEM JOINT SOFTWARE SUSTAINMENT AND MODERNIZATION. MISSION CRITICAL ENGINEERING, SOFTWARE DEVELOPMENT, AND CYBER-SECURITY INFORMATION ASSURANCE SUPPORT.
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 $58.0 million.
What is the period of performance?
Start: 2023-09-01. End: 2026-02-06.
What specific modernization milestones are included in this contract, and how do they align with broader DoD modernization goals?
The contract details are limited, but it likely includes updates to the GCCS-J software to enhance its capabilities, improve user interfaces, and integrate new technologies. These efforts are expected to align with the DoD's strategic objectives for modernizing its command and control infrastructure to maintain information superiority and operational effectiveness in a rapidly evolving threat landscape.
How will the effectiveness of the cybersecurity and information assurance support be measured and verified throughout the contract period?
Effectiveness will likely be measured through regular audits, penetration testing, vulnerability assessments, and adherence to strict cybersecurity protocols. The Defense Information Systems Agency (DISA) will likely establish key performance indicators (KPIs) related to threat detection, incident response times, and the successful implementation of security patches and updates to ensure the integrity and confidentiality of the GCCS-J system.
What is the projected return on investment for this $58 million expenditure in terms of enhanced operational readiness and reduced system vulnerabilities?
The return on investment is primarily measured by the sustained operational readiness of critical command and control functions and the mitigation of cybersecurity risks. By modernizing and sustaining GCCS-J, the DoD aims to prevent costly system failures, reduce the likelihood of successful cyberattacks, and ensure that military commanders have reliable, up-to-date information for decision-making, thereby enhancing overall mission effectiveness.
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 - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HC104717R0001
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
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: $224,962,918
Exercised Options: $61,453,764
Current Obligation: $58,045,847
Actual Outlays: $5,970,295
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $3,092,543
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: 2023-09-01
Current End Date: 2026-02-06
Potential End Date: 2029-02-06 00:00:00
Last Modified: 2025-12-31
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