DoD awards $13M CMPC Software Development contract to Northrop Grumman for custom programming services
Contract Overview
Contract Amount: $13,023,639 ($13.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-09-16
End Date: 2025-09-29
Contract Duration: 378 days
Daily Burn Rate: $34.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: CMPC SW DEV
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $13.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CMPC SW DEV Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 3. Northrop Grumman, a large defense contractor, is the awardee. 4. The contract duration is 378 days, indicating a medium-term project. 5. The NAICS code 541511 points to custom computer programming services. 6. The contract is a delivery order under a larger contract vehicle. 7. No small business set-aside was indicated for this award.
Value Assessment
Rating: fair
Benchmarking the value of this $13 million contract requires more detailed cost breakdowns and comparison to similar custom software development projects. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can sometimes lead to higher costs if not managed tightly. Without specific performance metrics or a detailed breakdown of labor categories and rates, a definitive value-for-money assessment is challenging. However, the competitive award process may have helped to moderate pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 5 bids suggests a reasonable level of competition for this custom computer programming service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award.
Public Impact
The Department of the Navy benefits from custom software development services. This contract supports the delivery of specialized computer programming services. The geographic impact is likely concentrated within the contractor's operational areas and the Navy's facilities. The contract supports skilled jobs in software development and related IT fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit.
- Lack of detailed performance metrics makes it difficult to assess efficiency and effectiveness.
- The specific nature of 'custom computer programming' can lead to scope creep if not managed meticulously.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Northrop Grumman is a large, established defense contractor with significant experience.
- The contract is a delivery order, suggesting it's part of a pre-competed contract vehicle.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The IT services market is vast and highly competitive, with significant government spending. This contract represents a small portion of the overall federal IT spending, which is dominated by large prime contractors like Northrop Grumman. Comparable spending benchmarks for custom software development vary widely based on complexity, duration, and required expertise.
Small Business Impact
This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific award are limited unless they are part of Northrop Grumman's supply chain. The absence of a set-aside suggests the primary focus was on obtaining the best technical solution from a competitive field, which often favors larger, established firms.
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 terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Custom Computer Programming Services
- Information Technology Professional Services
- Software Development Contracts
- Department of Defense IT Procurement
- Navy Software Modernization Programs
Risk Flags
- Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
- Lack of detailed performance metrics makes objective assessment of contractor efficiency difficult.
- Scope creep potential in custom software development needs vigilant management.
Tags
it, defense, department-of-defense, department-of-the-navy, custom-computer-programming-services, full-and-open-competition, cost-plus-fixed-fee, delivery-order, northrop-grumman, software-development, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CMPC SW DEV
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 $13.0 million.
What is the period of performance?
Start: 2024-09-16. End: 2025-09-29.
What is Northrop Grumman's track record with similar custom computer programming contracts for the Department of the Navy?
Northrop Grumman Systems Corporation has a substantial history of performing IT and software development services for the Department of Defense, including the Navy. Their track record typically involves large-scale, complex systems integration and development projects. Analyzing past performance on similar CPFF contracts would reveal their ability to manage costs, adhere to schedules, and deliver quality software within the specified requirements. Publicly available data often shows high contract values and long-term engagements, indicating a strong existing relationship and capability. However, specific details on cost overruns or performance issues on individual projects are not always readily accessible without deeper investigation into contract performance reports or IG findings.
How does the $13 million value compare to other custom software development contracts awarded by the DoD in the past year?
The $13 million award value for custom computer programming services is within the moderate range for Department of Defense contracts of this nature. Larger, more complex software development programs can easily reach hundreds of millions or even billions of dollars. However, for a single delivery order with a 378-day duration, $13 million represents a significant investment. Benchmarking against similar NAICS code 541511 contracts awarded by the DoD in the last fiscal year would show a distribution of contract values. This particular award appears to be competitive within its scope, especially considering it was awarded under full and open competition with multiple bids received.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for software development?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract for software development is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a profit incentive. If costs escalate significantly beyond initial estimates, the contractor may be incentivized to continue working to achieve their fixed fee, potentially leading to higher overall government expenditure than anticipated. Effective oversight, detailed cost tracking, and robust change management are crucial to mitigate these risks. Scope creep is another significant risk, where requirements expand beyond the original agreement, driving up costs without a corresponding increase in the fixed fee, unless contract modifications are properly executed.
What specific software or systems will this contract support or develop?
The provided data indicates the contract is for 'CMPC SW DEV' (likely Custom Mission Planning Capability Software Development) and falls under NAICS code 541511 (Custom Computer Programming Services). While the exact nature of the software is not detailed, the acronym suggests it relates to mission planning capabilities, which are critical for military operations. This could involve developing new software tools, enhancing existing mission planning systems, or integrating various software components to improve the efficiency and effectiveness of military mission planning processes. The specific systems or platforms it interfaces with would depend on the detailed requirements outlined in the contract statement of work.
How does the competition level (5 bidders) impact the potential value for taxpayers?
A competition level of 5 bidders for this contract is generally considered healthy and suggests that the government received multiple proposals from qualified sources. This level of competition typically drives down prices and encourages contractors to offer their best technical solutions and pricing to win the award. For taxpayers, this means a higher likelihood that the government secured a fair and reasonable price for the custom computer programming services. A lower number of bidders, or a sole-source award, would raise concerns about potential price inflation and reduced innovation.
What is the typical duration for custom software development contracts of this value within the DoD?
The typical duration for custom software development contracts of this value within the DoD can vary significantly based on project complexity, scope, and the contract type. A 378-day duration (approximately 12.5 months) for a $13 million contract is not uncommon, especially for projects involving the development of new capabilities or significant enhancements to existing systems. Shorter durations might be seen for smaller, more focused enhancements, while larger, more complex system development efforts could span several years. The CPFF structure can sometimes accommodate longer durations if the scope is not rigidly defined upfront, but effective program management aims to deliver value within a reasonable timeframe.
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: 5
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: $54,409,868
Exercised Options: $20,987,024
Current Obligation: $13,023,639
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $2,787,475
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
Start Date: 2024-09-16
Current End Date: 2025-09-29
Potential End Date: 2029-09-29 00:00:00
Last Modified: 2025-09-23
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