DoD's $23.3M engineering services contract for MCIOC mission support awarded to Northrop Grumman
Contract Overview
Contract Amount: $23,305,257 ($23.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2009-03-27
End Date: 2014-03-29
Contract Duration: 1,828 days
Daily Burn Rate: $12.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TECHNICAL, ANALYTICAL AND OPERATIONAL SUPPORT TO PERFORM THE MCIOC MISSION.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $23.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TECHNICAL, ANALYTICAL AND OPERATIONAL SUPPORT TO PERFORM THE MCIOC MISSION. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1828 days indicates a long-term need for these services. 3. Cost Plus Fixed Fee (CPFF) contract type may incentivize cost overruns if not closely managed. 4. The contract was awarded to a single bidder, raising questions about the extent of competition. 5. The Engineering Services NAICS code (541330) points to a focus on specialized technical expertise. 6. The contract's value is moderate within the context of large-scale defense procurements.
Value Assessment
Rating: fair
Benchmarking the value of this $23.3 million contract is challenging without specific performance metrics or comparable contract data. The CPFF structure requires careful oversight to ensure value for money, as it can lead to higher costs if the contractor's expenses exceed initial estimates. While the total value is significant, its effectiveness hinges on the successful execution of the technical, analytical, and operational support for the MCIOC mission.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition,' which theoretically allows all responsible sources to submit offers. However, the data indicates only one bid was received. This suggests that while the competition was open, the actual number of participating bidders was limited, potentially due to the specialized nature of the services required or the contractor's unique qualifications.
Taxpayer Impact: A single bid in an open competition can sometimes lead to less favorable pricing for taxpayers compared to scenarios with multiple competing offers. It warrants scrutiny to ensure the price reflects fair market value.
Public Impact
The primary beneficiary is the Department of Defense, specifically the entity responsible for the MCIOC mission. The contract delivers technical, analytical, and operational support critical for mission success. Services are likely concentrated within Virginia, where the contract was awarded. The contract supports specialized engineering roles, potentially impacting the technical workforce within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite open solicitation could indicate barriers to entry for other firms.
- CPFF contract type carries inherent risk of cost escalation if not rigorously managed.
- Lack of detailed performance metrics makes it difficult to assess true value for money.
Positive Signals
- Awarded under full and open competition, adhering to procurement best practices.
- Long contract duration suggests a stable and ongoing requirement, providing predictability.
- Northrop Grumman is a major defense contractor with established capabilities.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader aerospace and defense industry. The market for such specialized support is often dominated by large, established firms capable of meeting stringent government requirements. Comparable spending benchmarks would typically involve other large-scale technical support contracts for complex defense systems or intelligence missions.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The prime contractor, Northrop Grumman, may engage small businesses as subcontractors, but this is not mandated by the contract's structure.
Oversight & Accountability
Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The CPFF structure necessitates robust financial oversight to monitor costs and prevent overruns. Transparency is generally maintained through contract reporting mechanisms, though specific details of operational support may be sensitive.
Related Government Programs
- Defense Intelligence Agency Support Contracts
- Intelligence Community Support Services
- Aerospace Engineering Services
- Department of Defense IT and Technical Support
Risk Flags
- Limited competition despite open solicitation.
- Potential for cost overruns inherent in CPFF contract type.
- Contract duration and award date suggest services may be dated.
Tags
defense, department-of-defense, northrop-grumman, engineering-services, technical-support, analytical-support, operational-support, cost-plus-fixed-fee, full-and-open-competition, virginia, intelligence-support, mcioc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TECHNICAL, ANALYTICAL AND OPERATIONAL SUPPORT TO PERFORM THE MCIOC MISSION.
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 $23.3 million.
What is the period of performance?
Start: 2009-03-27. End: 2014-03-29.
What is the track record of Northrop Grumman Systems Corporation in delivering similar technical, analytical, and operational support services to the Department of Defense?
Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in providing a wide range of technical, analytical, and operational support services to the Department of Defense and other government agencies. They have a long history of involvement in complex defense programs, including intelligence, surveillance, reconnaissance, and command and control systems. Their track record typically includes managing large-scale contracts, developing advanced technologies, and providing mission-critical support. Specific performance on contracts similar to this MCIOC mission support would require a deeper dive into contract performance reports and historical data, but their general profile suggests a strong capability in this domain.
How does the $23.3 million contract value compare to similar engineering support contracts for intelligence missions within the DoD?
The $23.3 million contract value is moderate for specialized engineering and operational support within the Department of Defense, particularly for intelligence-related missions. Large-scale intelligence programs can involve contracts ranging from tens of millions to billions of dollars over their lifecycle. This particular contract, with a duration of approximately five years, suggests a focused scope of work. When compared to broader intelligence community support contracts or major system development efforts, $23.3 million represents a significant but not exceptionally large investment, likely covering specific technical and analytical functions rather than entire system acquisition or development.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for engineering services?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF arrangement, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. If the contractor's actual costs exceed the initial estimates, the government bears the additional expense. This can incentivize contractors to be less cost-conscious than in fixed-price contracts. For the government, effective oversight is crucial to ensure that costs are reasonable, allocable, and allowable, and that the fixed fee remains appropriate for the work performed. Scope creep can also exacerbate cost risks under a CPFF structure if not managed tightly.
Given the 'full and open competition' award type but only one bid, what does this imply about the market for MCIOC mission support services?
The indication of 'full and open competition' followed by a single bid suggests a complex market dynamic. While the solicitation was open to all responsible sources, the limited number of bidders implies that either the barriers to entry are high (e.g., specialized expertise, security clearances, existing infrastructure), or the market for this specific type of support is concentrated among a few large, capable contractors. It could also mean that potential competitors chose not to bid for various strategic reasons. This situation warrants careful analysis to ensure the government received fair value and that the limited competition does not represent a systemic issue in market availability for such critical services.
What are the potential performance implications of a contract awarded in 2009 and ending in 2014 for ongoing technical and analytical support?
A contract awarded in 2009 and ending in 2014 for technical and analytical support implies that the services provided were relevant during that period. However, technology and mission requirements evolve rapidly, especially in defense and intelligence. If the core mission or the technologies supporting it have changed significantly since 2014, the direct applicability of the support provided under this specific contract to current needs might be limited. The contract's value lies in its historical context and the foundation it may have laid for subsequent, potentially updated, support efforts. Assessing its ongoing relevance requires understanding the evolution of the MCIOC mission and its technological underpinnings post-2014.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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
Solicitation ID: N0002409R3094
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 12011 SUNSET HILLS ROAD, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $24,055,822
Exercised Options: $24,055,822
Current Obligation: $23,305,257
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4091
IDV Type: IDC
Timeline
Start Date: 2009-03-27
Current End Date: 2014-03-29
Potential End Date: 2014-03-29 00:00:00
Last Modified: 2017-03-30
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