Northrop Grumman received over $27M for administrative support services for ICE's Removal Management Division

Contract Overview

Contract Amount: $27,389,538 ($27.4M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2009-03-24

End Date: 2014-05-22

Contract Duration: 1,885 days

Daily Burn Rate: $14.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: REMOVAL MANAGEMENT DIVISION SUPPORT PROGRAM MANAGEMENT, TECHNICAL, AND ADMINISTRATIVE SUPPORT FOR REMOVAL MANAGEMENT DIVISION - DRO

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $27.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: REMOVAL MANAGEMENT DIVISION SUPPORT PROGRAM MANAGEMENT, TECHNICAL, AND ADMINISTRATIVE SUPPORT FOR REMOVAL MANAGEMENT DIVISION - DRO Key points: 1. The contract provided essential program management, technical, and administrative support for a critical division within ICE. 2. The services were procured through a competitive delivery order, suggesting a degree of market vetting. 3. The duration of the contract (over 5 years) indicates a sustained need for these support services. 4. The specific NAICS code (541611) points to a focus on management consulting services. 5. The contract was awarded to a large, established defense and aerospace contractor, Northrop Grumman.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and performance metrics. However, the total award of over $27 million across more than five years suggests a significant investment in administrative and management support. Comparing this to similar contracts for program management and consulting services within federal agencies would be necessary for a more precise value assessment. The pricing structure, based on labor hours, can be variable and dependent on the specific roles and hours utilized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was subject to full and open competition. While the specific number of bidders is not provided, the 'competitive' designation suggests that multiple offerors had the opportunity to bid. This competitive process is generally expected to lead to better price discovery and potentially more favorable terms for the government compared to sole-source procurements.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the best price and value.

Public Impact

The primary beneficiaries of this contract are U.S. Immigration and Customs Enforcement (ICE) and its Removal Management Division, which received crucial support for its operations. The services delivered included program management, technical expertise, and administrative assistance, enabling the division to function more effectively. The geographic impact is primarily within the District of Columbia, where the contract was awarded and likely where much of the administrative oversight occurred. The contract supported a workforce of individuals providing specialized consulting and administrative services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true effectiveness and value for money.
The reliance on labor hours can lead to cost overruns if not carefully managed and monitored.
The broad nature of 'administrative management and general management consulting services' could encompass a wide range of activities, making oversight complex.

Positive Signals

Awarded through a competitive process, which generally promotes better pricing and service.
The long contract duration suggests a stable and ongoing need, indicating the services were likely valuable to the agency.
The contractor, Northrop Grumman, is a large and experienced entity with a significant presence in government contracting.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant component of federal spending, with agencies frequently outsourcing specialized expertise to support their missions. The market for such services is competitive, with numerous firms offering a range of capabilities. The size of this contract, over $27 million, places it as a substantial award within this category, likely supporting a critical operational function for ICE.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. Given the prime contractor is Northrop Grumman, a large corporation, the focus was likely on fulfilling the agency's needs through established capabilities rather than prioritizing small business participation.

Oversight & Accountability

Oversight for this contract would have been managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Accountability measures would typically be tied to the delivery order terms and conditions, including performance standards and reporting requirements. Transparency would depend on the agency's policies regarding the release of contract details and performance information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

ICE Enforcement and Removal Operations Support
Department of Homeland Security Management Consulting Services
Federal Administrative Support Contracts
Program Management Support Services

Risk Flags

Lack of detailed performance metrics.
Potential for cost overruns due to labor-hour pricing.
Limited transparency on specific deliverables and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. REMOVAL MANAGEMENT DIVISION SUPPORT PROGRAM MANAGEMENT, TECHNICAL, AND ADMINISTRATIVE SUPPORT FOR REMOVAL MANAGEMENT DIVISION - DRO

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $27.4 million.

What is the period of performance?

Start: 2009-03-24. End: 2014-05-22.

What specific tasks and deliverables were expected under this contract?

The contract provided "PROGRAM MANAGEMENT, TECHNICAL, AND ADMINISTRATIVE SUPPORT FOR REMOVAL MANAGEMENT DIVISION." This broad description suggests a range of activities including strategic planning, operational support, data analysis, policy development assistance, and general administrative functions to aid the Removal Management Division. Specific deliverables would have been detailed in the individual delivery orders issued under the contract, likely including reports, analyses, briefings, and potentially process improvements or system recommendations. Without access to the specific delivery orders, the precise scope of work and expected outputs remain generalized.

How did Northrop Grumman's past performance on similar contracts influence this award?

While specific past performance details are not provided in the summary data, it is highly probable that Northrop Grumman's extensive track record as a major government contractor, including experience with defense, intelligence, and homeland security agencies, played a significant role in their selection. Agencies typically evaluate a contractor's history of meeting cost, schedule, and performance requirements on previous, comparable contracts. For a contract of this nature and value, a demonstrated ability to manage complex programs, provide technical expertise, and deliver reliable administrative support would have been crucial evaluation factors.

What was the total cost growth or reduction over the life of the contract?

The provided data indicates an award amount of $27,389,538.40. Without access to the final contract expenditure data or subsequent modifications, it is impossible to determine the exact cost growth or reduction over the contract's lifespan (March 24, 2009, to May 22, 2014). Contracts awarded on a labor-hour basis can experience fluctuations based on the actual hours worked and the specific labor categories utilized. A comprehensive analysis would require reviewing the contract's final accounting and any associated performance reports.

Were there any performance issues or contract disputes during its execution?

The provided summary data does not contain information regarding performance issues, disputes, or contract terminations. Typically, such details would be found in contract performance reports, agency procurement records, or potentially in legal databases if disputes escalated. The fact that the contract was awarded as a competitive delivery order and completed its term without apparent major issues suggests a generally satisfactory performance, but this cannot be definitively confirmed without further investigation into agency records.

How does the per-hour labor cost for this contract compare to market rates for similar consulting services?

Determining the precise per-hour labor cost and comparing it to market rates is not feasible with the given data. The contract was awarded on a 'LABOR HOURS' (LH) basis, meaning the total cost is a function of the hours worked multiplied by the negotiated hourly rates for various labor categories. Without knowing the specific labor categories (e.g., senior consultant, junior analyst, project manager) and their respective hourly rates, a direct comparison to market benchmarks is impossible. Such rates are often proprietary and vary significantly based on experience, location, and specific skill sets.

What was the strategic importance of these support services to ICE's Removal Management Division?

The strategic importance of these support services lies in enabling the Removal Management Division (RMD) to effectively execute its mission. RMD is responsible for managing the detention, care, and removal of non-citizens subject to removal orders. Program management, technical expertise, and administrative support are crucial for planning operations, managing resources, analyzing data related to removals, ensuring compliance with legal requirements, and maintaining efficient administrative processes. By outsourcing these functions, ICE could potentially focus its internal resources on core law enforcement and operational activities, thereby enhancing the overall effectiveness and efficiency of its removal operations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCECR-09-Q-00007

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 4807 STONECROFT BLVD, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,420,140

Exercised Options: $27,818,105

Current Obligation: $27,389,538

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F9797H

IDV Type: FSS

Timeline