DoD Awards Northrop Grumman $35.4M for Custom Computer Programming Services
Contract Overview
Contract Amount: $35,366,455 ($35.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2008-09-11
End Date: 2012-09-10
Contract Duration: 1,460 days
Daily Burn Rate: $24.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 16
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IT SOLUTIONS SERVICES - BASE YEAR
Place of Performance
Location: CHARLOTTESVILLE, ALBEMARLE County, VIRGINIA, 22911
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $35.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IT SOLUTIONS SERVICES - BASE YEAR Key points: 1. Contract awarded to a large, established defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Award Fee, which can incentivize performance but may lead to higher costs. 4. The NAICS code 541511 indicates a focus on custom computer programming.
Value Assessment
Rating: fair
The Cost Plus Award Fee contract type allows for cost reimbursement plus an award fee based on performance. This can lead to costs exceeding initial estimates if performance targets are aggressively pursued or if oversight is insufficient.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces.
Public Impact
Supports critical IT infrastructure for the Department of Defense. Enhances custom computer programming capabilities within the defense sector. Impacts the operational readiness and technological advancement of defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type can lead to cost overruns.
- Potential for scope creep in custom programming services.
- Long contract duration (4 years) may not reflect current technological needs.
Positive Signals
- Full and open competition utilized.
- Awarded to a reputable defense contractor.
- Supports essential defense IT functions.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is substantial across government agencies, with benchmarks varying widely based on complexity and service level.
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 award, which is common for large prime contracts.
Oversight & Accountability
The Defense Information Systems Agency (DISA) is responsible for overseeing this contract. The Cost Plus Award Fee structure requires robust oversight to ensure performance targets are met and costs are controlled effectively.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Risk of outdated technology if requirements are not continuously updated.
- Limited visibility into specific programming deliverables and their impact.
- Lack of explicit small business participation noted.
Tags
custom-computer-programming-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IT SOLUTIONS SERVICES - BASE YEAR
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $35.4 million.
What is the period of performance?
Start: 2008-09-11. End: 2012-09-10.
What specific custom programming services were delivered, and how did they align with evolving defense needs over the contract period?
The contract focused on custom computer programming services for the Department of Defense, likely supporting various IT systems and applications. Without detailed task orders, it's difficult to ascertain the exact nature of the programming. However, given the 4-year duration, it's crucial that the services remained relevant to the DoD's dynamic technological landscape and evolving mission requirements.
How effectively was the Cost Plus Award Fee structure managed to ensure value for money and prevent excessive costs?
The effectiveness of the Cost Plus Award Fee (CPAF) structure hinges on clear performance metrics and diligent oversight. While CPAF can incentivize superior performance, it also carries the risk of escalating costs if not managed tightly. The agency's ability to define achievable award criteria and monitor expenditures closely would determine if taxpayers received optimal value.
Were there opportunities for smaller, innovative firms to participate in subcontracting or future related procurements?
While this specific award went to a large prime contractor, the use of full and open competition theoretically allows for subcontracting opportunities for small businesses. However, the extent of small business involvement depends on the prime contractor's subcontracting plan and the nature of the services required. Future procurements should actively seek to include small businesses where feasible.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 16
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7575 COLSHIRE DR, MC LEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $35,696,968
Exercised Options: $35,696,968
Current Obligation: $35,366,455
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ07D0005
IDV Type: IDC
Timeline
Start Date: 2008-09-11
Current End Date: 2012-09-10
Potential End Date: 2013-09-10 00:00:00
Last Modified: 2025-05-14
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