Northrop Grumman received over $17.5M for EA & SYS ENG SUPPORT SERVICES from the Department of the Interior
Contract Overview
Contract Amount: $17,564,612 ($17.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of the Interior
Start Date: 2004-01-30
End Date: 2008-10-30
Contract Duration: 1,735 days
Daily Burn Rate: $10.1K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: EA & SYS ENG SUPPORT SERVICES
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of the Interior obligated $17.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: EA & SYS ENG SUPPORT SERVICES Key points: 1. The contract value of $17.5M for system engineering support appears reasonable given the 5-year duration. 2. Competition dynamics are unclear as this was a delivery order under a larger contract. 3. Performance risk is moderate, typical for complex system engineering tasks. 4. The contract falls within the IT services sector, specifically custom computer programming. 5. Spending on similar IT support services by the federal government is substantial, indicating a consistent need. 6. The contractor, Northrop Grumman, is a large, established defense and aerospace company with extensive federal experience.
Value Assessment
Rating: good
The total award of $17.56 million over approximately five years suggests a moderate annual spend of around $3.5 million. This is within a typical range for complex system engineering and IT support services provided to large federal agencies. Benchmarking against similar contracts for enterprise architecture and systems engineering support indicates that this pricing is competitive, especially considering the contractor's established reputation and the scope of services likely involved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This contract was issued as a competitive delivery order, indicating that it was likely competed among multiple vendors under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. The specific details of the competition, such as the number of bids received or the evaluation criteria, are not provided in this data. However, the 'competitive' designation suggests that more than one offer was solicited and considered, which is generally a positive sign for price discovery.
Taxpayer Impact: A competitive award process, even for a delivery order, generally leads to better pricing for taxpayers compared to sole-source procurements. It ensures that multiple companies have an opportunity to bid, driving down costs through market forces.
Public Impact
The Department of the Interior benefits from enhanced enterprise architecture and systems engineering support, crucial for its IT infrastructure and operational efficiency. Services delivered likely include system design, integration, analysis, and custom programming to support the agency's mission-critical functions. The geographic impact is primarily within the Department of the Interior's operational areas, likely supporting headquarters and potentially regional offices. Workforce implications include the employment of skilled IT professionals, engineers, and analysts by Northrop Grumman to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in complex system engineering projects if not managed tightly.
- Reliance on a single large contractor for critical IT support services could pose a risk if performance falters.
- The 'Time and Materials' contract type can sometimes lead to higher costs if not carefully monitored for efficiency.
Positive Signals
- Contract awarded to a reputable and experienced large systems integrator (Northrop Grumman).
- The contract was designated as 'competitive', suggesting a degree of market vetting.
- The duration of the contract (over 5 years) allows for continuity of essential services.
- The contract falls under a standard North American Industry Classification System (NAICS) code for IT services.
Sector Analysis
This contract falls within the broader Information Technology (IT) services sector, specifically under Custom Computer Programming Services (NAICS 541511). This sector is characterized by high demand for specialized skills in software development, system integration, and IT consulting. Federal spending in this area is substantial, driven by the need to modernize legacy systems, enhance cybersecurity, and implement new digital services. Comparable spending benchmarks for enterprise architecture and systems engineering support services for large federal agencies often run into tens or hundreds of millions of dollars annually.
Small Business Impact
This contract does not appear to have a specific small business set-aside designation (ss: false, sb: false). As a delivery order likely awarded to a large prime contractor (Northrop Grumman), the primary impact on small businesses would be through potential subcontracting opportunities. The extent of small business participation would depend on Northrop Grumman's subcontracting plan and the specific nature of the services required. Without explicit set-aside goals, direct benefit to small businesses is not guaranteed.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Interior's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Given the nature of IT services, regular progress reports and technical reviews are standard oversight mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of the Interior IT Modernization Initiatives
- Federal Enterprise Architecture Program
- Custom Computer Programming Services Contracts
- Systems Engineering Support Services
- IT Services for Civilian Agencies
Risk Flags
- Potential for cost overruns due to T&M contract type.
- Lack of specific competition details for the delivery order.
- Reliance on a single large contractor for critical services.
Tags
it-services, enterprise-architecture, systems-engineering, northrop-grumman, department-of-the-interior, competitive-delivery-order, time-and-materials, custom-computer-programming, federal-contract, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $17.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. EA & SYS ENG SUPPORT 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 the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $17.6 million.
What is the period of performance?
Start: 2004-01-30. End: 2008-10-30.
What is Northrop Grumman's track record with the Department of the Interior for similar IT services?
Northrop Grumman has a significant history of contracting with the federal government, including the Department of the Interior, across various IT and systems engineering domains. While specific details for this exact contract's performance history are not provided, the company's extensive experience suggests a capacity to handle complex requirements. Analyzing past performance reviews, contract modifications, and any reported issues on similar contracts with the DOI would provide a more granular understanding of their reliability and effectiveness in delivering enterprise architecture and systems engineering support.
How does the $17.56 million award compare to other EA & SYS ENG SUPPORT SERVICES contracts?
The total award of $17.56 million over approximately five years equates to an average annual value of roughly $3.5 million. This figure is moderate when compared to the vast landscape of federal IT contracts. Larger agencies often award multi-year, multi-million dollar contracts for enterprise architecture and systems engineering. For instance, contracts supporting agencies like the Department of Defense or NASA can easily exceed tens of millions annually. Therefore, this award appears to be within a reasonable range for a significant, but not necessarily the largest, IT support service contract for a department like the Interior.
What are the primary risks associated with this type of contract?
The primary risks associated with this Enterprise Architecture & Systems Engineering Support Services contract include technical complexity, potential for scope creep, and vendor lock-in. System engineering projects often involve intricate interdependencies, making them susceptible to unforeseen challenges and delays. The 'Time and Materials' pricing structure, while offering flexibility, carries a risk of escalating costs if not meticulously managed and monitored for efficiency. Furthermore, reliance on a single contractor for critical architectural and engineering support could pose a risk if performance issues arise or if the contractor's strategic direction diverges from the agency's long-term needs.
How effective is the 'competitive delivery order' mechanism for ensuring value?
The 'competitive delivery order' mechanism is generally effective in ensuring value, as it implies that multiple vendors were considered and likely competed on price and technical merit under a broader IDIQ contract. This competition helps drive down costs and encourages innovation. However, the true effectiveness depends on the specifics of the competition: the number of bidders, the clarity of the requirements, and the evaluation criteria used. If the competition was robust, it likely resulted in a fair market price. If it was a limited competition or primarily driven by factors other than price, the value proposition might be less optimized.
What is the historical spending trend for EA & SYS ENG SUPPORT SERVICES at the Department of the Interior?
Historical spending trends for Enterprise Architecture & Systems Engineering Support Services at the Department of the Interior would likely show a consistent need for these services, reflecting the agency's reliance on complex IT systems. Federal agencies, including the DOI, continuously invest in maintaining, upgrading, and integrating their IT infrastructure to support diverse missions. Spending in this category often fluctuates based on specific modernization projects, cybersecurity initiatives, and shifts in technology. A detailed analysis of past fiscal years would reveal patterns of investment, identify key periods of increased or decreased spending, and highlight any major shifts in contracting strategies for these essential services.
What are the implications of using a Time and Materials (T&M) contract type for these services?
The use of a Time and Materials (T&M) contract type for Enterprise Architecture & Systems Engineering Support Services implies that the government pays the contractor for the actual labor hours expended at specified hourly rates, plus the cost of materials. This structure offers flexibility, allowing the scope of work to evolve as needed, which can be beneficial for complex, evolving IT projects. However, it also presents a risk of cost overruns if the contractor's efficiency is low or if the scope is not well-defined and managed. Effective oversight, including detailed tracking of hours and regular performance reviews, is crucial to mitigate these risks and ensure fair pricing for the government.
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
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 12900 FEDERAL SYSTEMS PARK DR, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $17,564,612
Exercised Options: $17,564,612
Current Obligation: $17,564,612
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4522G
IDV Type: FSS
Timeline
Start Date: 2004-01-30
Current End Date: 2008-10-30
Potential End Date: 2008-10-30 00:00:00
Last Modified: 2021-12-02
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