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 ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT 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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