Interior's $10.8M Custom Programming Contract with Northrop Grumman: A Decade-Long Engagement
Contract Overview
Contract Amount: $10,815,475 ($10.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of the Interior
Start Date: 2000-06-15
End Date: 2009-06-30
Contract Duration: 3,302 days
Daily Burn Rate: $3.3K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 51
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: DENVER, JEFFERSON County, COLORADO, 80225
State: Colorado Government Spending
Plain-Language Summary
Department of the Interior obligated $10.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: Key points: 1. Significant contract value of $10.8 million over 10 years. 2. Sole provider for custom computer programming services. 3. Long duration raises questions about ongoing need and potential for vendor lock-in. 4. IT sector spending, specifically custom programming services.
Value Assessment
Rating: questionable
The contract's 10-year duration and sole-source nature make direct pricing comparisons difficult. Without competitive bidding over such an extended period, it's challenging to ascertain if the pricing remained optimal and reflective of market rates for custom computer programming services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source delivery order, indicating a lack of competition. This limits price discovery and may result in higher costs for taxpayers compared to a competitively bid contract.
Taxpayer Impact: The absence of competition over a decade likely led to higher costs for taxpayers than could have been achieved through a competitive process.
Public Impact
Taxpayers funded a decade-long custom programming service without competitive re-evaluation. Potential for outdated technology or inefficient solutions due to long-term sole-source arrangement. Lack of transparency in pricing adjustments over the contract's lifespan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years)
- Sole-source award
- Lack of competition
- Potential for price creep
Positive Signals
- Provided necessary custom programming services
- Long-term relationship may have fostered expertise
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Benchmarks for similar long-term, sole-source custom programming contracts are difficult to establish due to the unique nature of such agreements.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific contract.
Oversight & Accountability
The long duration and sole-source nature of this contract warrant scrutiny regarding oversight. Periodic reviews should have ensured continued necessity and fair pricing, though the data doesn't detail these oversight activities.
Related Government Programs
- Custom Computer Programming Services
- Department of the Interior Contracting
- Bureau of Land Management Programs
Risk Flags
- Lack of Competition
- Extended Sole-Source Period
- Potential for Price Escalation
- Limited Transparency on Pricing Adjustments
- Risk of Vendor Lock-in
Tags
custom-computer-programming-services, department-of-the-interior, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $10.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. See the official description on USAspending.
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 (Bureau of Land Management).
What is the total obligated amount?
The obligated amount is $10.8 million.
What is the period of performance?
Start: 2000-06-15. End: 2009-06-30.
Was the sole-source nature of this contract justified throughout its 10-year duration, or could competition have been introduced at later stages?
The justification for a sole-source award typically rests on unique capabilities or circumstances. For a 10-year contract, it is unusual not to re-evaluate the need for competition. Agencies should periodically assess if the original justification still holds or if market conditions have evolved, allowing for competitive procurement to ensure best value and pricing for the government.
What mechanisms were in place to ensure the pricing remained fair and competitive over the 10-year period, given the lack of formal competition?
Without formal competition, ensuring fair pricing relies heavily on robust contract clauses, government cost analysis, and market research. The agency should have conducted regular price analyses, potentially using independent cost estimates or benchmarking against similar, albeit potentially different, services. Transparency in any price adjustments or escalation clauses is also crucial for accountability.
How did the government assess the ongoing need and effectiveness of the custom computer programming services provided by Northrop Grumman over the decade?
Assessing ongoing need and effectiveness typically involves performance metrics, user feedback, and regular program reviews. For a long-term sole-source contract, it's vital to confirm that the services continuously align with evolving mission requirements and technological advancements. Without this, the government risks paying for redundant or outdated solutions, diminishing the overall value.
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: 51
Pricing Type: FIRM FIXED PRICE (J)
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: $12,793,148
Exercised Options: $12,530,262
Current Obligation: $10,815,475
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4522G
IDV Type: FSS
Timeline
Start Date: 2000-06-15
Current End Date: 2009-06-30
Potential End Date: 2009-06-30 00:00:00
Last Modified: 2021-12-02
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