Pentagon Telecomm Center Contract Awarded to Northrop Grumman for $11.7M
Contract Overview
Contract Amount: $11,666,788 ($11.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of the Interior
Start Date: 2006-04-01
End Date: 2008-03-31
Contract Duration: 730 days
Daily Burn Rate: $16.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PENTAGON TELECOMM CENTER
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22301
State: Virginia Government Spending
Plain-Language Summary
Department of the Interior obligated $11.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: PENTAGON TELECOMM CENTER Key points: 1. Contract awarded for Computer Systems Design Services. 2. Significant value of $11.7 million over two years. 3. No competition was utilized for this award. 4. The contract falls under the Department of the Interior's oversight. 5. Firm Fixed Price contract type suggests cost certainty.
Value Assessment
Rating: questionable
The contract value of $11.7 million for two years of computer systems design services is difficult to benchmark without specific service details. However, the lack of competition raises concerns about whether a competitive price was achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This method bypasses the price discovery benefits typically found in competitive bidding, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these services.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The Department of the Interior awarded a significant contract for IT services. The contract duration of two years provides a stable period for service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Sole-source award
Positive Signals
- Firm Fixed Price contract
- Clear service category (Computer Systems Design)
Sector Analysis
This contract falls under IT services, specifically Computer Systems Design. The value of $11.7 million for a two-year period is substantial, and the lack of competition is a key factor in assessing its value.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. This means opportunities for small business participation were likely missed.
Oversight & Accountability
The contract is managed by the Department of the Interior, but the lack of competition suggests potential weaknesses in oversight regarding cost-effectiveness and fair market pricing.
Related Government Programs
- Computer Systems Design Services
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for overpricing
- No small business participation indicated
Tags
computer-systems-design-services, department-of-the-interior, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $11.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. PENTAGON TELECOMM CENTER
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $11.7 million.
What is the period of performance?
Start: 2006-04-01. End: 2008-03-31.
What was the justification for not competing this contract, and what analysis was performed to ensure fair and reasonable pricing?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards require a documented justification, such as a unique capability or urgent need. Without this information, it's impossible to assess the validity of the award method or the assurance of fair and reasonable pricing. Further investigation into the contract file is needed.
What are the risks associated with awarding a $11.7 million contract without competition?
The primary risk is paying an inflated price due to the absence of competitive pressure. Without competing bids, there's no market validation of the price. Other risks include potential for vendor lock-in, reduced innovation, and a perception of unfairness, which can erode public trust in government procurement processes.
How effective is the Department of the Interior in ensuring value for money on sole-source IT contracts?
The effectiveness of the Department of the Interior in ensuring value for money on sole-source IT contracts cannot be determined from this single data point. While the contract type is Firm Fixed Price, the lack of competition prevents a direct comparison to market rates. A broader review of the agency's sole-source procurement practices and their outcomes would be necessary.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 21200 BURBANK BLVD., WOODLAND HILLS, CA, 32
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $16,911,927
Exercised Options: $13,462,697
Current Obligation: $11,666,788
Timeline
Start Date: 2006-04-01
Current End Date: 2008-03-31
Potential End Date: 2008-03-31 00:00:00
Last Modified: 2012-06-27
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