Northrop Grumman awarded $34.5M for strategic technical support, raising value-for-money questions

Contract Overview

Contract Amount: $34,521,600 ($34.5M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of the Interior

Start Date: 2015-05-14

End Date: 2018-07-13

Contract Duration: 1,156 days

Daily Burn Rate: $29.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF ORDER # 13: STRATEGIC TECHNICAL SUPPORT SERVICES FOR DATA OPERATIONS

Place of Performance

Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $34.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::CT::IGF ORDER # 13: STRATEGIC TECHNICAL SUPPORT SERVICES FOR DATA OPERATIONS Key points: 1. Contract value appears high relative to duration and scope, warranting further value-for-money analysis. 2. Limited public data on performance metrics makes it difficult to assess effectiveness. 3. The contract was awarded under full and open competition, suggesting a competitive process. 4. Northrop Grumman's extensive experience in defense and IT sectors positions them well for this type of work. 5. The firm-fixed-price structure shifts some risk to the contractor, but oversight is still crucial. 6. The contract's duration of nearly four years suggests a need for sustained technical support.

Value Assessment

Rating: fair

The total award of $34.5 million over approximately 3.8 years (1156 days) averages to roughly $9 million per year. Without specific deliverables or performance metrics, it's challenging to benchmark this against similar contracts. The 'Other Computer Related Services' NAICS code (541519) is broad, and the specific nature of 'strategic technical support for data operations' is not detailed. The firm-fixed-price contract type is generally favorable for cost control, but the overall value proposition requires deeper insight into the services rendered and their impact.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 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 BPA call. While full and open competition is generally preferred, the number of bidders can influence price discovery. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open process, though the actual price achieved depends on the number and strength of the competing offers.

Public Impact

The Department of the Interior benefits from enhanced data operations capabilities. Services likely support the agency's mission-critical data management and strategic planning. The contract's geographic impact is primarily within the Department of the Interior's operational areas, likely nationwide. Workforce implications may include specialized IT and data management roles, potentially benefiting skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess contractor effectiveness and value for money.
The broad nature of 'strategic technical support' could lead to scope creep if not tightly managed.
High contract value necessitates robust oversight to ensure funds are used efficiently and effectively.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible bidding process.
Firm-fixed-price contract type aligns incentives and shifts some performance risk to the contractor.
Northrop Grumman is a large, established contractor with significant experience in relevant technical domains.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer-related services. The market for strategic technical support, particularly for data operations, is substantial within the federal government as agencies increasingly rely on data analytics and management. Comparable spending benchmarks would typically be found within IT services contracts awarded to large system integrators, often in the tens to hundreds of millions of dollars annually, depending on the scope and duration.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). As a large contract awarded to a major defense contractor, there is no direct indication of subcontracting opportunities for small businesses within the provided data. Further analysis would be needed to determine if any small business subcontracting plan was required or implemented.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's contracting officers and program managers. As a BPA call, the underlying Blanket Purchase Agreement likely has its own oversight mechanisms. Transparency is limited by the public availability of detailed performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
Data Management Services
Strategic Planning Support
Cloud Computing Services
Cybersecurity Support

Risk Flags

Value for Money Assessment Needed
Performance Metrics Unclear
Scope Definition Ambiguity

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $34.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::CT::IGF ORDER # 13: STRATEGIC TECHNICAL SUPPORT SERVICES FOR DATA OPERATIONS

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 $34.5 million.

What is the period of performance?

Start: 2015-05-14. End: 2018-07-13.

What specific data operations and strategic technical support services were provided under this contract?

The provided data does not specify the exact nature of the 'strategic technical support services for data operations.' This could encompass a wide range of activities, including data architecture design, data warehousing, data analytics implementation, database administration, data governance strategy, and IT infrastructure support related to data. Without a detailed statement of work or performance reports, it is impossible to ascertain the precise services rendered. The broad NAICS code 541519 ('Other Computer Related Services') further indicates a general classification rather than a specific service description.

How does the $34.5 million award compare to similar contracts for data operations support within the Department of the Interior or other federal agencies?

Benchmarking this $34.5 million award requires comparing it to contracts with similar scopes, durations, and service types. Given the contract's duration of approximately 3.8 years, the annual value is around $9 million. Contracts for large-scale data operations support, especially those involving strategic planning and complex IT infrastructure, can range significantly. However, without more specific details on the services provided, direct comparisons are difficult. Generally, IT support services for major federal agencies can run into tens or hundreds of millions of dollars, but the 'value for money' depends heavily on the criticality and complexity of the data operations supported.

What were the key performance indicators (KPIs) and how did Northrop Grumman perform against them?

The provided data does not include any information regarding Key Performance Indicators (KPIs) or Northrop Grumman's performance against them for this contract. Such details are typically found in contract performance reports, which are often not publicly accessible. The absence of this information makes it challenging to objectively assess the effectiveness and efficiency of the services provided and whether the government received adequate value for the $34.5 million expenditure.

What is Northrop Grumman's track record with the Department of the Interior and for similar IT support contracts?

Northrop Grumman is a major defense contractor with extensive experience across various government agencies, including the Department of the Interior. They have a long history of providing IT, aerospace, and defense-related services. While this specific contract's details are limited, Northrop Grumman generally possesses the technical capabilities and past performance required for large-scale IT support and data operations contracts. Their track record typically involves complex system integration, software development, and technical support across numerous government programs.

What was the rationale for awarding this contract as a BPA Call under full and open competition?

Awarding this contract as a BPA Call under full and open competition suggests that the Department of the Interior utilized an existing Blanket Purchase Agreement (BPA) as the vehicle for procurement. The 'full and open competition' aspect means that the initial BPA or the specific call against it was open to all eligible responsible sources. This approach is often used to streamline the procurement process for recurring needs while still ensuring competitive pricing and access to a broad range of potential vendors. The rationale is typically to leverage existing agreements for efficiency while maintaining a competitive environment.

Are there any indications of cost overruns or budget issues associated with this contract?

The provided data does not contain information about cost overruns or budget issues for this specific contract. The award amount is $34,521,599.94, and the contract type is Firm Fixed Price (FFP). FFP contracts are designed to provide price certainty, meaning the contractor is obligated to complete the work for a fixed price, regardless of their actual costs. Any cost overruns would typically be absorbed by the contractor, unless there were change orders or modifications to the contract scope. Without access to detailed financial reporting or contract modification history, it's impossible to definitively state whether there were budget issues.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $39,325,701

Exercised Options: $34,521,600

Current Obligation: $34,521,600

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: IND14PA00057

IDV Type: BPA

Timeline