Northrop Grumman awarded $33.6M for threat mitigation and engineering support to TSA

Contract Overview

Contract Amount: $33,627,507 ($33.6M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2015-12-28

End Date: 2018-05-03

Contract Duration: 857 days

Daily Burn Rate: $39.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THIS IS A TASK ORDER FOR THREAT MITIGATION, ENGINEERING, AND IMAGE (TME&I) SUPPORT SERVICES. IGF::CL,CT::IGF

Place of Performance

Location: EGG HARBOR TOWNSHIP, ATLANTIC County, NEW JERSEY, 08234

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: THIS IS A TASK ORDER FOR THREAT MITIGATION, ENGINEERING, AND IMAGE (TME&I) SUPPORT SERVICES. IGF::CL,CT::IGF Key points: 1. Contract value represents a significant investment in aviation security infrastructure. 2. Services include threat mitigation, engineering, and image support, crucial for TSA operations. 3. The contract was awarded through full and open competition, suggesting a competitive bidding process. 4. Performance period spans over two years, indicating a need for sustained support. 5. The contract type (Time and Materials) can pose cost control challenges if not managed effectively. 6. Geographic focus on New Jersey highlights a specific operational area for these services.

Value Assessment

Rating: fair

The total award of $33.6 million over approximately 2.5 years for specialized engineering and support services appears to be within a reasonable range for complex federal contracts. However, without specific benchmarks for 'Threat Mitigation, Engineering, and Image (TME&I) Support Services,' a precise value-for-money assessment is difficult. The Time and Materials contract type introduces inherent risk for cost overruns compared to fixed-price contracts, necessitating robust oversight to ensure fair pricing and prevent excessive expenditures. Further analysis would require comparing this to similar TME&I contracts awarded by DHS or other agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this specific requirement. While competition is generally positive for price discovery, the exact number of bidders (3) might not represent the full market potential, and further details on the bidding process would be needed to fully assess its effectiveness in driving down costs.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and technical solutions, potentially leading to cost savings and higher quality services.

Public Impact

The Transportation Security Administration (TSA) is the primary beneficiary, receiving critical support for its operational mission. Services delivered enhance aviation security through threat mitigation, engineering expertise, and image support. The contract's impact is geographically focused on New Jersey, supporting TSA operations within that state. Specialized engineering and technical support services are provided, potentially requiring a skilled workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Limited number of bidders (3) may indicate potential barriers to entry or a niche market.
Specific details on the 'image' support component are not elaborated, raising questions about its scope and necessity.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential contractors could participate.
The contract addresses critical security functions for the TSA, indicating a necessary and important service.
The duration of the contract suggests a stable, long-term need for these specialized services.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically supporting government security and engineering needs. The market for such specialized support services is often characterized by a mix of large defense contractors and niche technical firms. Comparable spending benchmarks would typically be found within the Department of Homeland Security's (DHS) overall budget for aviation security and related engineering support, which can run into billions annually. This specific contract represents a small but vital component of that larger security apparatus.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement for this award (ss: false, sb: false). Therefore, the direct impact on small businesses is likely limited unless they are involved as subcontractors to the prime contractor, Northrop Grumman. Analysis of subcontracting plans would be necessary to determine the extent of small business involvement and its contribution to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security (DHS) and the Transportation Security Administration (TSA). As a Delivery Order under a larger contract vehicle, specific oversight mechanisms would be detailed in the parent contract and the task order itself. Transparency is generally facilitated through contract award databases, but detailed performance monitoring and Inspector General (IG) jurisdiction would depend on the specific terms and any ongoing audits or investigations related to the contract's execution.

Related Government Programs

Department of Homeland Security - Aviation Security Programs
Transportation Security Administration - Engineering and Technical Services
Federal Aviation Administration - Security Technology Development
Department of Defense - Threat Mitigation Support Services

Risk Flags

Time and Materials Contract Type Risk
Limited Bidder Competition
Unclear Scope of 'Image' Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. THIS IS A TASK ORDER FOR THREAT MITIGATION, ENGINEERING, AND IMAGE (TME&I) SUPPORT SERVICES. IGF::CL,CT::IGF

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $33.6 million.

What is the period of performance?

Start: 2015-12-28. End: 2018-05-03.

What is the specific nature of the 'image' support services required under this contract, and how does it contribute to threat mitigation?

The provided data does not specify the exact nature of the 'image' support services. Typically, in a security context, 'image' could refer to various aspects such as biometric imaging, surveillance imagery analysis, or the creation and maintenance of visual documentation for threat assessment and training purposes. Without further details from the contract statement of work, it's difficult to ascertain its precise contribution to threat mitigation. However, it is reasonable to infer that such services would likely support intelligence gathering, situational awareness, or the development of countermeasures against identified threats. Further clarification from the contracting agency would be needed to fully understand this component's role and value.

How does the Time and Materials (T&M) contract type for this $33.6 million award compare to other contract types used for similar TSA support services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or when the duration and effort required are uncertain. For a contract valued at $33.6 million over approximately 2.5 years, a T&M award suggests that the TSA anticipated flexibility in the service requirements. Compared to fixed-price contracts, T&M awards carry a higher risk of cost overruns for the government because payment is based on direct labor hours at specified rates and actual costs of materials. Agencies typically prefer fixed-price contracts for well-defined requirements to ensure cost certainty. The use of T&M here implies that the nature of threat mitigation, engineering, and image support services may have involved evolving requirements or a need for rapid response, making precise upfront cost estimation challenging. Robust oversight and clear ceiling prices are critical to managing costs under T&M agreements.

What is Northrop Grumman's track record with the Department of Homeland Security and specifically the TSA for similar support services?

Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in providing a wide range of services to federal agencies, including DHS and TSA. While specific details on their past performance solely for 'Threat Mitigation, Engineering, and Image (TME&I) Support Services' are not provided in the abbreviated data, the company has a history of securing large contracts related to aerospace, defense, intelligence, and cybersecurity. Their portfolio often includes complex engineering, system integration, and technical support. Given their scale and scope, it is probable that Northrop Grumman has previously supported TSA or DHS in related capacities, potentially involving security systems, operational support, or technical infrastructure. A comprehensive review of their contract history with DHS would reveal the extent and nature of their prior engagements.

Given the $33.6 million award and 3 bidders, what does this suggest about the market for specialized threat mitigation and engineering support services?

An award of $33.6 million for specialized services like threat mitigation, engineering, and image support, with only 3 bids received, suggests a potentially niche or highly specialized market. This number of bidders is moderate; while it indicates some competition, it's not indicative of a broad, open market where numerous companies can readily provide these exact capabilities. It could imply that the technical requirements are stringent, requiring specific expertise, certifications, or clearances that limit the pool of qualified contractors. Alternatively, the contract vehicle or specific solicitation process might have inadvertently restricted broader participation. For taxpayers, a limited number of bidders can sometimes translate to less competitive pricing, although the full and open competition aspect mitigates this risk to some extent by ensuring the process was accessible.

What are the potential risks associated with the 'Delivery Order' award type for this task?

A Delivery Order (DO) is a type of task order issued under a larger indefinite-delivery, indefinite-quantity (IDIQ) contract. The primary risk associated with a DO, especially when it represents a significant portion of the IDIQ's value like this $33.6 million award, is that it might not have undergone the same level of competition or scrutiny as a standalone contract. While this specific DO was awarded under 'full and open competition,' the underlying IDIQ contract might have had different competition parameters. Risks also include potential scope creep if not managed tightly, and the possibility that the government might not achieve the best possible pricing if the IDIQ itself wasn't competitively sourced or if the DO competition was limited. However, the 'full and open' designation for this specific DO mitigates some of these concerns by ensuring a competitive process for this particular task.

Industry Classification

NAICS: Educational Services › Educational Support Services › Educational Support Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

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: $37,674,351

Exercised Options: $34,337,826

Current Obligation: $33,627,507

Subaward Activity

Number of Subawards: 65

Total Subaward Amount: $58,181,090

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0715DTWE204

IDV Type: IDC

Timeline