Northrop Grumman awarded $25.6M contract for custom computer programming services by the Bureau of Land Management

Contract Overview

Contract Amount: $25,621,893 ($25.6M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of the Interior

Start Date: 2004-09-18

End Date: 2008-03-31

Contract Duration: 1,290 days

Daily Burn Rate: $19.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ADDITIONAL FUNDING NG

Plain-Language Summary

Department of the Interior obligated $25.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ADDITIONAL FUNDING NG Key points: 1. Contract awarded via a competitive delivery order, suggesting a degree of market vetting. 2. The contract duration of 1290 days indicates a significant, long-term need for these services. 3. Focus on custom computer programming suggests specialized IT support rather than off-the-shelf solutions. 4. The award to a large, established contractor like Northrop Grumman may indicate a preference for proven capabilities. 5. The contract's value, while substantial, needs to be benchmarked against similar IT service contracts. 6. The absence of small business set-aside flags requires scrutiny of subcontracting opportunities.

Value Assessment

Rating: fair

The contract value of $25.6 million over approximately 3.5 years averages around $7.3 million annually. Benchmarking this against similar custom computer programming services contracts for federal agencies is crucial. Without specific comparable data, it's difficult to definitively assess value for money. However, the competitive nature of the award mechanism (delivery order) suggests some level of price discovery, but the specific pricing structure (labor hours) can lead to cost overruns if not managed tightly. The historical data provided does not include specific cost breakdowns or performance metrics to allow for a more granular value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER'. This indicates that it was likely competed under a pre-existing contract vehicle, such as a Government-Wide Acquisition Contract (GWAC) or an Indefinite Delivery/Indefinite Quantity (IDIQ) contract. The term 'competitive' suggests that multiple offerors were invited to submit proposals, and the award was made to the one offering the best value. The number of bidders and the specific competition dynamics would typically be detailed in the contract award notice, which is not fully provided here.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price reductions and encouraging innovation among contractors vying for the business. It helps ensure that the government is not overpaying for services and receives the most advantageous terms.

Public Impact

The Bureau of Land Management (BLM) is the primary beneficiary, receiving custom computer programming services to support its operations. These services likely contribute to the BLM's mission of managing public lands, resources, and related programs. The geographic impact is nationwide, as the BLM operates across the United States. The contract supports specialized IT jobs within the contractor's workforce, potentially including software developers, engineers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the 'LABOR HOURS' contract type if not rigorously monitored.
Lack of explicit small business subcontracting goals requires verification of opportunities for smaller firms.
The long contract duration could lead to vendor lock-in or challenges in adapting to evolving technological needs without careful management.

Positive Signals

Awarded through a competitive process, indicating potential for good value and service.
Contractor (Northrop Grumman) is a large, established entity with significant experience in government contracting.
The specific nature of 'Custom Computer Programming Services' suggests a tailored solution to meet unique agency requirements.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. This market segment is characterized by high demand for specialized software development, system integration, and IT support. The federal government is a significant consumer of these services, with spending often concentrated in areas requiring unique solutions not met by commercial off-the-shelf products. Comparable spending benchmarks would involve analyzing other large IT service contracts awarded to system integrators and software developers by agencies with similar operational needs.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to all eligible offerors, including large businesses. While there's no explicit small business set-aside, it is possible that subcontracting opportunities may exist. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is unclear and warrants further investigation into the contractor's subcontracting practices.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Bureau of Land Management. Performance monitoring, quality assurance, and invoice review are standard oversight mechanisms. The contract type (labor hours) necessitates close tracking of hours worked and adherence to established rates. Transparency is typically facilitated through contract databases like FPDS-NG, which publish award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Custom Computer Programming Services
IT Services
Software Development
Federal IT Contracts
Bureau of Land Management IT Spending

Risk Flags

Potential for cost overruns due to labor hours contract type.
Lack of explicit small business subcontracting goals.
Need for robust performance monitoring given the custom development nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $25.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ADDITIONAL FUNDING NG

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 $25.6 million.

What is the period of performance?

Start: 2004-09-18. End: 2008-03-31.

What is the historical spending pattern for custom computer programming services by the Bureau of Land Management?

Analyzing historical spending for custom computer programming services by the Bureau of Land Management (BLM) requires accessing detailed contract databases. Based on the provided data, this specific contract represents a significant investment of $25.6 million. To understand the broader pattern, one would need to aggregate data for similar contract actions (NAICS code 541511) awarded by the BLM over several fiscal years. This would reveal trends in contract values, award types (competitive vs. non-competitive), and primary contractors. For instance, if the BLM consistently awards large, long-term contracts for custom programming, it suggests a sustained internal need for specialized IT development that cannot be met through off-the-shelf solutions or internal resources. Conversely, a fluctuating pattern might indicate project-based needs or shifts in IT strategy. Without access to a comprehensive historical dataset for the BLM, a definitive analysis of spending patterns is not possible from this single award.

How does the awarded amount compare to the average value of similar IT contracts awarded by the Department of the Interior?

To compare the $25.6 million award to the average value of similar IT contracts within the Department of the Interior (DOI), one would need to query federal procurement databases (like FPDS-NG) for contracts with the same NAICS code (541511 - Custom Computer Programming Services) awarded by the DOI agencies during a relevant timeframe. The average value would be calculated by summing the total value of these comparable contracts and dividing by the number of contracts. If this $25.6 million contract is significantly higher or lower than the average, it could indicate unique scope, higher pricing, or potentially a more favorable negotiated rate. Given that Northrop Grumman is a large prime contractor, the value might be on the higher end, but the competitive nature of the award mechanism suggests efforts to secure reasonable pricing. A detailed comparison requires access to aggregated historical DOI contract data.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for custom computer programming services, KPIs would focus on aspects such as software functionality meeting requirements, adherence to development timelines, code quality (e.g., bug rates, maintainability), system performance (e.g., speed, uptime), user satisfaction, and successful integration with existing systems. The 'LABOR HOURS' contract type often implies that performance is measured by the efficient and effective application of billed hours towards achieving defined milestones and deliverables. The contracting officer's representative (COR) would be responsible for monitoring progress against these KPIs and ensuring the contractor meets its contractual obligations. Without the contract's Statement of Work (SOW) or Performance Work Statement (PWS), specific KPIs remain unknown.

What is Northrop Grumman's track record with the Bureau of Land Management and similar agencies?

Northrop Grumman Systems Corporation is a major defense contractor and provider of advanced technology solutions. Its track record with the Bureau of Land Management (BLM) and other agencies within the Department of the Interior (DOI) would be reflected in past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented disputes or issues. A review of federal procurement data would likely show numerous awards to Northrop Grumman across various federal agencies for a wide range of services, including IT. For this specific contract, the fact that it was awarded competitively suggests a positive or at least acceptable past performance record, or that other bidders did not offer a better value proposition. A deeper dive into CPARS data, if available, would provide specific insights into their performance on previous BLM or DOI contracts.

What is the risk associated with the 'LABOR HOURS' contract type for this specific service?

The 'LABOR HOURS' contract type (PT: LABOR HOURS) carries inherent risks, primarily related to cost control. This type of contract pays the contractor for the direct labor hours expended at specified fixed hourly rates. The main risk for the government is that costs can escalate if the contractor is inefficient, if labor hours are not diligently tracked and justified, or if the scope of work expands without proper modification and oversight. For custom computer programming, this can be particularly risky as estimating the exact hours needed for complex development can be challenging. To mitigate these risks, the BLM would need robust oversight, including detailed timesheet verification, regular progress reviews, and potentially cost ceilings or CLINs (Contract Line Item Numbers) that limit total expenditure. The competitive nature of the award might have helped secure reasonable hourly rates, but ongoing vigilance is essential.

How does this contract align with the BLM's overall IT modernization or digital transformation goals?

The alignment of this $25.6 million contract for custom computer programming with the Bureau of Land Management's (BLM) IT modernization or digital transformation goals depends heavily on the specific objectives outlined in the contract's Statement of Work (SOW). Custom programming services are often procured when off-the-shelf solutions do not meet unique agency needs or when developing new, specialized capabilities is required to achieve strategic goals. If the BLM is aiming to modernize legacy systems, develop new data analytics platforms, enhance public-facing portals, or implement innovative land management tools, then this contract could be a critical component. However, if the work involves maintaining outdated systems or lacks a clear link to forward-looking digital strategies, it might represent less of a modernization effort and more of a sustainment activity. A thorough assessment requires understanding the BLM's broader IT strategy and the specific deliverables of this contract.

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: LABOR HOURS (Z)

Contractor Details

Parent Company: Titan II Inc. (UEI: 016435559)

Address: 12900 FEDERAL SYSTEMS PARK DRIVE, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $31,941,065

Exercised Options: $25,621,893

Current Obligation: $25,621,893

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4522G

IDV Type: FSS

Timeline