DHS Awards Northrop Grumman $9.8M for Centralized Ticketing Services, Ending April 2009
Contract Overview
Contract Amount: $9,841,765 ($9.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2005-04-19
End Date: 2009-04-18
Contract Duration: 1,460 days
Daily Burn Rate: $6.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: CENTRALIZED TICKETING SERVICES
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $9.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CENTRALIZED TICKETING SERVICES Key points: 1. Contract awarded to a large, established defense contractor. 2. Services fall under custom computer programming, a competitive sector. 3. Potential risk associated with time and materials pricing model. 4. Spending is concentrated within the Department of Homeland Security.
Value Assessment
Rating: fair
The contract's total value of $9.8M over four years suggests a moderate annual spend. Benchmarking against similar custom computer programming services contracts is difficult without more granular data on the specific services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was a competitive delivery order, indicating multiple bids were likely considered. The time and materials pricing structure, however, can sometimes lead to less predictable costs compared to fixed-price contracts.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, suggesting efforts were made to secure a reasonable price. However, the T&M pricing could lead to cost overruns if not closely managed.
Public Impact
Ensures essential IT support for U.S. Immigration and Customs Enforcement operations. Supports national security and border control functions. Potential for long-term reliance on a single vendor for critical services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Lack of small business participation
- Potential for scope creep
Positive Signals
- Competitive award process
- Established contractor with relevant experience
Sector Analysis
This contract falls under IT services, specifically custom computer programming. The federal IT services market is vast and highly competitive, with significant spending across various agencies for software development, maintenance, and support.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that large businesses dominated the bidding process, potentially limiting opportunities for smaller, specialized firms in this sector.
Oversight & Accountability
Oversight would primarily fall under the Department of Homeland Security and U.S. Immigration and Customs Enforcement. Effective management of the time and materials contract is crucial to ensure value for money and prevent cost overruns.
Related Government Programs
- Custom Computer Programming Services
- Department of Homeland Security Contracting
- U.S. Immigration and Customs Enforcement Programs
Risk Flags
- Time and Materials pricing model can lead to cost overruns.
- Lack of small business participation.
- Potential for vendor lock-in.
- Contract duration is significant (4 years).
Tags
custom-computer-programming-services, department-of-homeland-security, va, do, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $9.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CENTRALIZED TICKETING SERVICES
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 $9.8 million.
What is the period of performance?
Start: 2005-04-19. End: 2009-04-18.
What specific custom computer programming services were rendered under this contract?
The provided data identifies the contract as 'CENTRALIZED TICKETING SERVICES' under NAICS code 541511 (Custom Computer Programming Services). While the exact nature of the services isn't detailed, it likely involved the development, maintenance, or support of a ticketing system used by U.S. Immigration and Customs Enforcement for managing service requests or incidents.
What were the key factors driving the cost under the Time and Materials pricing model?
Under a Time and Materials (T&M) contract, costs are driven by the labor hours expended by contractor personnel and the cost of materials used. Factors influencing the total cost would include the number of hours worked by different labor categories (e.g., senior developers, junior programmers), their respective hourly rates, and the cost of any necessary software, hardware, or other direct materials consumed during the contract period.
How effectively did the competitive process ensure value for money given the T&M structure?
While the contract was competitively awarded, the Time and Materials (T&M) structure inherently carries a risk of cost escalation if not rigorously managed. The competitive process likely secured a reasonable baseline hourly rate and material markup. However, ongoing oversight and robust performance metrics are essential to ensure the agency received good value and that the contractor's efforts were efficient and necessary.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 15010 CONFERENCE CENTER DR, CHANTILLY, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $9,841,765
Exercised Options: $9,841,765
Current Obligation: $9,841,765
Parent Contract
Parent Award PIID: GS35F4506G
IDV Type: FSS
Timeline
Start Date: 2005-04-19
Current End Date: 2009-04-18
Potential End Date: 2009-04-18 00:00:00
Last Modified: 2013-08-06
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