Marine Corps Systems Command Awards $32.3M Contract for ADPE System Configuration to Northrop Grumman

Contract Overview

Contract Amount: $32,275,910 ($32.3M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2003-07-17

End Date: 2008-06-30

Contract Duration: 1,810 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE

Sector: IT

Official Description: 200312!001253!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785403C7042 !A!N! !N! !20030717!20060117!064683464!008255408!016435559!N!NORTHROP GRUMMAN INFORMATION T!12005 SUNRISE VALLEY DRIVE!RESTON !VA!20191!78300!095!12!WINTER PARK !ORANGE !FLORIDA !+000000785000!N!N!000000000000!7010!ADPE SYSTEM CONFIGURATION !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !541512!E! !3! ! ! ! ! !99990909!B!F!Y!A! !A!U!V!2!003!B! !Z!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92128

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $32.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200312!001253!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785403C7042 !A!N! !N! !20030717!20060117!064683464!008255408!016435559!N!NORTHROP GRUMMAN INFORMATION T!12005 SUNRISE VALLEY DRIVE!RESTON !VA!20191!78300!095!12!WINTER PARK !ORANG… Key points: 1. The contract, valued at $32,275,910, is for ADPE System Configuration. 2. Northrop Grumman Systems Corporation is the prime contractor. 3. The contract was awarded under full and open competition. 4. The sector is Information Technology, specifically Computer Systems Design Services.

Value Assessment

Rating: fair

The contract value of $32.3M for ADPE System Configuration appears within a reasonable range for similar IT services, though specific benchmarks are not readily available without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a competitive bidding process that should have led to fair market pricing. The specific pricing structure (Cost Plus Incentive Fee) allows for shared savings but requires careful monitoring.

Taxpayer Impact: Taxpayer funds are utilized for this IT system configuration, with the competitive award aiming for cost-effectiveness. Oversight is crucial to ensure value for money.

Public Impact

Enhances Marine Corps' IT infrastructure and operational capabilities. Supports national defense through advanced technology deployment. Potential for job creation within the IT sector. Ensures modernization of critical defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Incentive Fee contract type can lead to cost overruns if not managed tightly.
  • Lack of specific details on system configuration makes it hard to assess true value.
  • Long contract duration (1810 days) requires sustained oversight.

Positive Signals

  • Awarded under full and open competition.
  • Northrop Grumman is a major defense contractor with proven capabilities.
  • Contract aims to improve critical Marine Corps systems.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across the federal government, supporting modernization and operational efficiency.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large corporation, Northrop Grumman. There is no direct indication of small business subcontracting in the provided data.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), indicating a level of oversight. However, the Cost Plus Incentive Fee structure necessitates diligent monitoring by the agency to control costs and ensure performance.

Related Government Programs

  • Computer Systems Design Services
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Cost Plus Incentive Fee (CPIF) contract type.
  • Long contract duration (1810 days).
  • Limited public detail on specific system configurations.
  • No explicit mention of small business subcontracting.

Tags

computer-systems-design-services, department-of-defense, ca, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200312!001253!1700!F9999 !MARINE CORPS SYSTEMS COMMAND !M6785403C7042 !A!N! !N! !20030717!20060117!064683464!008255408!016435559!N!NORTHROP GRUMMAN INFORMATION T!12005 SUNRISE VALLEY DRIVE!RESTON !VA!20191!78300!095!12!WINTER PARK !ORANGE !FLORIDA !+000000785000!N!N!000000000000!7010!ADPE SYSTEM CONFIGURATION !A7 !ELECTRONICS AND COMMUNICATION !2000!NOT DISCERNABLE OR CLASSIFIED !541512!E! !3! ! ! ! ! !99990909!B

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $32.3 million.

What is the period of performance?

Start: 2003-07-17. End: 2008-06-30.

What specific ADPE system configurations are being procured, and how do they align with current Marine Corps operational needs?

The provided data lacks specifics on the exact ADPE system configurations. Further analysis would require access to the contract's Statement of Work (SOW) to understand the technical details, scope, and intended use of these configurations. Understanding this alignment is crucial for assessing the contract's strategic value and ensuring it meets evolving military requirements effectively.

What are the key performance indicators (KPIs) and incentive structures within the Cost Plus Incentive Fee (CPIF) arrangement for this contract?

The CPIF structure suggests that both the government and contractor share in cost savings or overruns based on achieving specific performance targets. Detailed KPIs related to system performance, delivery timelines, and quality would be essential for effective oversight. Understanding the exact incentive formula is critical to gauge how it motivates Northrop Grumman to control costs while delivering high-quality system configurations.

How does the $32.3 million contract value compare to industry benchmarks for similar ADPE system configuration projects of comparable complexity and duration?

Without detailed scope and technical specifications, a precise benchmark comparison is challenging. However, $32.3 million over approximately five years for complex IT system configuration for a major military branch is within a plausible range. A more accurate assessment would require comparing against similar DoD or federal contracts for system integration, hardware/software configuration, and deployment within similar security and operational environments.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 12005 SUNRISE VALLEY DRIVE, RESTON, VA, 20191

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2003-07-17

Current End Date: 2008-06-30

Potential End Date: 2008-06-30 00:00:00

Last Modified: 2016-02-09

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