DoD awards $19.17M for Engineering Support Services to Northrop Grumman, a sole-source contract
Contract Overview
Contract Amount: $19,172,287 ($19.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2011-09-28
End Date: 2013-04-18
Contract Duration: 568 days
Daily Burn Rate: $33.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: ENGINEERING SUPPORT SERVICES
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $19.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ENGINEERING SUPPORT SERVICES Key points: 1. Contract awarded to a single, large defense contractor. 2. No competition was identified for this procurement. 3. The contract was awarded as a definitive contract. 4. Services procured fall under engineering services NAICS code.
Value Assessment
Rating: fair
The contract value of $19.17M for engineering support services over 568 days appears reasonable given the nature of specialized engineering work. However, without specific deliverables or performance metrics, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition in this sole-source award may result in a higher cost to taxpayers than if the services had been competitively procured.
Public Impact
Taxpayers may have paid a premium due to the absence of competition. The Department of Defense received specialized engineering support. The contract duration of over 1.5 years suggests a significant need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of transparency in pricing due to no competition.
Positive Signals
- Contract awarded to a known entity.
- Services are essential for defense operations.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for defense projects. Spending in this sector can vary significantly based on project complexity and national security needs.
Small Business Impact
This contract was awarded to a large business and did not include provisions for small business participation. There is no indication of subcontracting to small businesses.
Oversight & Accountability
The contract was awarded by the Defense Contract Management Agency, suggesting some level of oversight. However, the sole-source nature raises questions about the thoroughness of the justification and approval process.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Limited transparency
- No small business participation noted
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ENGINEERING SUPPORT SERVICES
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 $19.2 million.
What is the period of performance?
Start: 2011-09-28. End: 2013-04-18.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other responsible sources. Without access to the specific contract file, it's impossible to determine the exact reasoning. However, the absence of competition suggests that either no other contractors could provide the required engineering support, or the agency did not pursue competitive avenues, potentially impacting value for money.
How does the cost of these engineering support services compare to similar contracts awarded competitively?
Benchmarking this contract's cost against similar, competitively awarded engineering support services is challenging without detailed performance metrics and deliverables. However, sole-source contracts are generally expected to be more expensive than their competitive counterparts due to the lack of market pressure. A detailed cost analysis would be required to determine the extent of any price premium paid by the government.
What specific engineering services were provided, and how critical were they to the Department of Defense's mission?
The contract specifies 'Engineering Support Services' under NAICS code 541330. These services are vital for the design, development, testing, and sustainment of complex defense systems. While the exact nature of the support is not detailed here, such services are fundamental to maintaining technological superiority and operational readiness for the armed forces.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,527,079
Exercised Options: $22,299,577
Current Obligation: $19,172,287
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2011-09-28
Current End Date: 2013-04-18
Potential End Date: 2013-04-18 00:00:00
Last Modified: 2022-07-12
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