DoD Awards Northrop Grumman $43.6M for Custom Computer Programming Services
Contract Overview
Contract Amount: $43,598,401 ($43.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2015-03-31
End Date: 2019-10-30
Contract Duration: 1,674 days
Daily Burn Rate: $26.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF NEW TASK ORDER AWARD
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $43.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF NEW TASK ORDER AWARD Key points: 1. Significant contract value of $43.6 million awarded to a major defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration of nearly 5 years indicates a long-term need for services. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risk for cost overruns. Without detailed cost breakdowns and robust oversight, it's difficult to assess if the $43.6 million represents excellent value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific pricing structure (Cost Plus Fixed Fee) requires careful monitoring to ensure the final cost reflects fair market value.
Taxpayer Impact: Taxpayer funds are being utilized for custom computer programming services. The competitive award process aims to ensure reasonable pricing, but the CPFF structure necessitates vigilance against potential cost escalations.
Public Impact
Supports critical Department of the Army operations through custom software development. Potential for technological advancements and improved system capabilities. Ensures continued availability of specialized IT services for national defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts.
- Long contract duration increases the risk of scope creep and cost escalation.
- Lack of specific performance metrics makes it hard to gauge efficiency.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition, promoting a competitive environment.
- Contract addresses a clear need for custom computer programming services.
- Experienced contractor selected for a complex task.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across government agencies, with benchmarks varying widely based on complexity and service level agreements.
Small Business Impact
The data indicates that small businesses were not directly involved in this prime contract award, as the 'sb' field is false. Further analysis would be needed to determine if any subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The Cost Plus Fixed Fee contract type requires diligent oversight from the Department of the Army to manage costs and ensure performance. Regular audits and performance reviews are crucial for accountability and to prevent potential waste.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Long contract duration increases risk.
- Lack of detailed performance metrics.
- No explicit small business participation.
- Limited insight into specific services provided.
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 $43.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF NEW TASK ORDER AWARD
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $43.6 million.
What is the period of performance?
Start: 2015-03-31. End: 2019-10-30.
What specific custom computer programming services are being provided under this contract, and how do they align with the Army's strategic IT goals?
The contract is for custom computer programming services, NAICS code 541511. While the specific services are not detailed, they likely involve developing, modifying, or adapting software to meet unique Army requirements. Alignment with strategic goals would depend on the Army's current IT modernization efforts and specific project objectives, which require further documentation review.
Given the CPFF structure, what mechanisms are in place to control costs and ensure the $43.6 million represents a fair price for the services rendered?
The Cost Plus Fixed Fee structure necessitates robust government oversight. Mechanisms should include detailed cost tracking, regular audits of contractor expenses, clear definition of allowable costs, and negotiation of a reasonable fixed fee. The contracting officer must actively manage the contract to prevent cost overruns and ensure the final price reflects the value delivered.
How will the effectiveness and impact of these custom programming services be measured throughout the contract's duration?
Effectiveness measurement typically relies on performance metrics and deliverables outlined in the contract's Statement of Work (SOW). For custom programming, this could include adherence to technical specifications, successful integration, user acceptance testing, and timely completion of milestones. The government must establish clear Key Performance Indicators (KPIs) and conduct regular reviews to assess the impact.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: COST PLUS FIXED FEE (U)
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: $59,749,044
Exercised Options: $43,598,401
Current Obligation: $43,598,401
Subaward Activity
Number of Subawards: 181
Total Subaward Amount: $184,088,383
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15P7T12DE009
IDV Type: IDC
Timeline
Start Date: 2015-03-31
Current End Date: 2019-10-30
Potential End Date: 2019-10-30 12:10:00
Last Modified: 2026-03-04
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