DoD Awards Northrop Grumman $180M for BAMS-D Support, Lacking Competition
Contract Overview
Contract Amount: $179,793,849 ($179.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2015-06-20
End Date: 2021-03-03
Contract Duration: 2,083 days
Daily Burn Rate: $86.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: FOLLOW ON BAMS-D OPERATION AND MAINTENANCE SUPPORT CONTRACT IGF::OT::IGF
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92127
Plain-Language Summary
Department of Defense obligated $179.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: FOLLOW ON BAMS-D OPERATION AND MAINTENANCE SUPPORT CONTRACT IGF::OT::IGF Key points: 1. Significant contract value of $179.8M for operational support. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Risk of inflated costs due to lack of competitive bidding. 4. Services fall under 'All Other Professional, Scientific, and Technical Services' sector.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a sole-source award, makes a direct pricing assessment difficult without competitive benchmarks. The lack of competition suggests potential for higher-than-market pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. The absence of competition limits price discovery and potentially leads to less favorable terms for the government.
Taxpayer Impact: Taxpayers may be overpaying due to the lack of competitive pressure to drive down costs.
Public Impact
Lack of competition may lead to higher costs for taxpayers. Limited transparency in pricing due to sole-source nature. Potential for reduced innovation without market-driven incentives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of competition
Positive Signals
- Established contractor for critical support
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category. Benchmarking is challenging without specific service details, but the value suggests a significant program requiring specialized expertise.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small business participation was sought or if opportunities were missed.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. However, the sole-source nature of the award warrants close scrutiny to ensure fair pricing and effective performance.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns
- Limited transparency in pricing
- No small business participation indicated
Tags
all-other-professional-scientific-and-te, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $179.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. FOLLOW ON BAMS-D OPERATION AND MAINTENANCE SUPPORT CONTRACT IGF::OT::IGF
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 $179.8 million.
What is the period of performance?
Start: 2015-06-20. End: 2021-03-03.
What specific services are included in this "Operation and Maintenance Support" to justify the high cost without competition?
The contract details are vague, referring to 'All Other Professional, Scientific, and Technical Services' for BAMS-D support. Without a more granular breakdown of tasks, it's difficult to assess the necessity of the $180M expenditure. This lack of specificity, coupled with a sole-source award, raises concerns about value for money and whether the pricing accurately reflects the services rendered.
What are the risks associated with a sole-source, cost-plus-fixed-fee contract for long-term operational support?
The primary risks include potential cost overruns and reduced incentive for efficiency. A cost-plus-fixed-fee structure means the contractor is reimbursed for allowable costs plus a fixed fee, which can incentivize higher spending. Without competition, there's no market pressure to ensure the government receives the best possible price or that the contractor actively seeks cost savings.
How effective is the Defense Contract Management Agency in ensuring value and accountability for sole-source contracts of this magnitude?
DCMA's effectiveness hinges on its ability to conduct thorough price and cost analyses, monitor contractor performance, and enforce contract terms. For sole-source awards, robust oversight is critical to mitigate risks of inflated pricing and ensure the contractor delivers required services efficiently. The long duration and significant value of this contract necessitate diligent oversight to protect taxpayer interests.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001914R1033
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 17066 GOLDENTOP RD, SAN DIEGO, CA, 92127
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $200,200,431
Exercised Options: $196,864,732
Current Obligation: $179,793,849
Actual Outlays: $-2,695
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $63,465
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-06-20
Current End Date: 2021-03-03
Potential End Date: 2021-03-03 00:00:00
Last Modified: 2022-08-08
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