DoD awards Northrop Grumman $17.9M for NGNMPS/CMPC integration, highlighting custom programming needs

Contract Overview

Contract Amount: $17,926,222 ($17.9M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2024-08-13

End Date: 2029-08-14

Contract Duration: 1,827 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: NGNMPS/CMPC INTEGRATION AND SAFE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: NGNMPS/CMPC INTEGRATION AND SAFE Key points: 1. Contract focuses on specialized custom computer programming, indicating a need for unique software solutions. 2. The award to a large, established defense contractor suggests a reliance on experienced providers for complex systems. 3. A 5-year duration points to a long-term integration effort, potentially involving significant system development and testing. 4. The cost-plus-fixed-fee structure implies that while the fee is fixed, the government bears the risk of cost overruns. 5. This contract falls within the IT services sector, specifically custom programming, a critical area for defense modernization. 6. The absence of small business set-aside flags suggests the scope or nature of the work may not be conducive to smaller firms.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the deliverables and the complexity of the NGNMPS/CMPC integration. However, the per-unit cost, if calculable, would need to be compared against similar custom software development projects within the Department of Defense. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D and complex services, can lead to higher overall costs for the government if not carefully managed, as it shifts cost overrun risk to the buyer. The fixed fee provides some cost certainty for the contractor's profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach is generally favored for maximizing competition and achieving the best value for the government. The number of bidders is not specified, but the fact that it was competed broadly suggests a competitive landscape for these types of specialized IT services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider range of innovative solutions.

Public Impact

The primary beneficiaries are the Department of the Navy and potentially other branches of the Department of Defense utilizing the NGNMPS/CMPC systems. The services delivered involve custom computer programming to integrate and safeguard critical systems. The geographic impact is likely concentrated within the Navy's operational and IT infrastructure, primarily in Virginia where the contractor has a presence. Workforce implications may include specialized software engineers, system integrators, and cybersecurity professionals, potentially both within the contractor's organization and government oversight roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee (CPFF) pricing can lead to cost overruns for the government if not meticulously managed.
Reliance on a single large contractor for critical system integration may pose long-term dependency risks.
The specific nature of 'custom computer programming' can sometimes lead to scope creep if requirements are not clearly defined upfront.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Northrop Grumman is a major defense contractor with a proven track record in complex systems integration.
The contract duration of five years allows for sustained focus and development on critical integration tasks.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services (NAICS 541511). This sub-sector is characterized by high demand for specialized software development, system integration, and maintenance, particularly within government and defense contexts. The market for such services is substantial, driven by the continuous need for modernization, cybersecurity enhancements, and the development of bespoke solutions that off-the-shelf software cannot provide. Comparable spending benchmarks would involve analyzing other large-scale custom software development contracts awarded by the DoD and other federal agencies.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and the prime contractor is Northrop Grumman Systems Corporation, a large business. There is no explicit information regarding subcontracting plans for small businesses. Given the specialized nature of custom programming for defense systems, it's possible that significant portions of the work might be performed by the prime or its large subcontractors, potentially limiting direct opportunities for small businesses unless specifically targeted in subcontracting goals.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract's terms, including performance metrics, delivery schedules, and quality standards. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Naval Sea Systems Command (NAVSEA) IT Contracts
Department of Defense Enterprise IT Modernization Programs
Custom Software Development Services for Federal Agencies

Risk Flags

Cost-Plus-Fixed-Fee (CPFF) pricing structure
Potential for scope creep in custom development
Cybersecurity risks associated with new software integration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. NGNMPS/CMPC INTEGRATION AND SAFE

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 Navy).

What is the total obligated amount?

The obligated amount is $17.9 million.

What is the period of performance?

Start: 2024-08-13. End: 2029-08-14.

What is the specific functionality and purpose of the NGNMPS/CMPC systems being integrated?

The provided data does not detail the specific functionalities of the NGNMPS/CMPC systems. However, 'NGNMPS' could potentially refer to a Next Generation Navigation and Mission Planning System, and 'CMPC' might relate to a Command and Control or Combat Management Platform. The integration of such systems is critical for modern military operations, enabling seamless data flow between navigation, mission planning, and command functions. This ensures that warfighters have accurate, real-time situational awareness and can execute missions effectively. The 'SAFE' component likely refers to security protocols or safety features integrated within these systems, crucial for protecting sensitive data and ensuring operational reliability.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar custom programming services?

Cost-Plus-Fixed-Fee (CPFF) contracts are common for research and development, complex services, or situations where the scope of work is not fully defined at the outset, as is often the case with custom programming. In a CPFF contract, the government reimburses the contractor for allowable costs incurred and pays a predetermined fixed fee representing profit. This contrasts with Firm-Fixed-Price (FFP) contracts, where the price is set regardless of actual costs, placing cost risk on the contractor. For custom programming, FFP can be suitable if requirements are very well-defined, potentially offering better value if the contractor is efficient. However, CPFF provides flexibility for evolving requirements and allows the government to leverage the contractor's expertise while managing cost uncertainty, though it shifts significant cost risk to the government.

What is Northrop Grumman's track record with similar large-scale IT integration contracts for the Department of Defense?

Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in large-scale IT integration, aerospace, and defense systems. They have a long history of supporting the Department of Defense (DoD) across various platforms and programs, including command and control systems, intelligence, surveillance, and reconnaissance (ISR), and network-centric warfare capabilities. Their track record includes numerous complex system integration projects, often involving software development, hardware integration, and cybersecurity solutions. While specific details of past performance on projects identical to NGNMPS/CMPC integration are not provided here, their general profile suggests a capability to handle such demanding and critical endeavors. Past performance evaluations are typically a key factor in the DoD's source selection process for these types of contracts.

What are the potential risks associated with integrating custom computer programming services into existing defense systems?

Integrating custom computer programming services into existing defense systems carries several potential risks. Firstly, compatibility issues can arise if the new software is not designed to seamlessly interface with legacy systems, potentially requiring extensive rework or leading to operational disruptions. Secondly, cybersecurity vulnerabilities are a significant concern; custom code, if not rigorously tested and secured, can introduce new attack vectors. Thirdly, scope creep is a common risk, where project requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Fourthly, the complexity of defense systems means that even minor changes can have unforeseen ripple effects on other functionalities. Finally, vendor lock-in can occur if the custom solution is highly proprietary, making future modifications or transitions difficult and expensive.

How does this contract's value compare to historical spending on similar custom programming services by the Department of the Navy?

Comparing the $17.9 million value of this specific contract to historical spending on similar custom programming services by the Department of the Navy requires access to detailed historical contract data and a clear definition of 'similar services.' Custom computer programming (NAICS 541511) is a broad category. The Navy procures a vast array of IT services, ranging from small-scale software enhancements to massive enterprise-wide system overhauls. Without knowing the precise scope, complexity, and duration of the NGNMPS/CMPC integration, a direct comparison is difficult. However, $17.9 million over five years suggests an average annual value of approximately $3.6 million, which is a moderate-sized contract for specialized IT services within a large organization like the Navy. Larger, more complex integration efforts typically run into tens or hundreds of millions of dollars.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0001919R0040

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 7575 COLSHIRE DR, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $75,998,590

Exercised Options: $61,442,499

Current Obligation: $17,926,222

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $550,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001920D0024

IDV Type: IDC

Timeline