DoD awards $19.27M contract for Transition and Planning to Northrop Grumman, raising value and risk questions
Contract Overview
Contract Amount: $19,270,111 ($19.3M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-06-20
End Date: 2023-08-31
Contract Duration: 1,898 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: TRANSITION AND PLANNING
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $19.3 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: TRANSITION AND PLANNING Key points: 1. Contract value of $19.27M for Transition and Planning services. 2. Awarded to Northrop Grumman Technical Services, Inc. 3. Department of Defense contract managed by Defense Contract Management Agency. 4. Engineering Services (NAICS 541330) sector. 5. Contract type: Definitive Contract with Cost Plus Incentive Fee.
Value Assessment
Rating: questionable
The Cost Plus Incentive Fee structure can lead to cost overruns if not managed tightly. Benchmarking against similar 'Transition and Planning' contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within the Cost Plus Incentive Fee structure warrant scrutiny.
Taxpayer Impact: Taxpayer funds are utilized for this contract. The effectiveness of the competition and cost controls will determine the ultimate taxpayer impact.
Public Impact
Supports Department of Defense operations through essential planning services. Potential for technological advancements or process improvements stemming from the planning. Impacts the defense contracting landscape and competition within the engineering services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee structure
- Lack of specific performance metrics in provided data
- Potential for scope creep in planning services
Positive Signals
- Full and open competition utilized
- Long-term contract duration allows for sustained support
Sector Analysis
This contract falls within the Engineering Services sector, which is critical for government operations. Spending benchmarks for 'Transition and Planning' services can vary widely based on project scope and complexity.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Large prime contractors like Northrop Grumman typically manage significant portions of these contracts, with subcontracting opportunities potentially available.
Oversight & Accountability
Oversight is provided by the Defense Contract Management Agency. The Cost Plus Incentive Fee structure necessitates robust oversight to ensure cost efficiency and prevent contractor overreach.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Incentive Fee (CPIF) can lead to higher costs.
- Limited insight into specific performance metrics.
- Potential for contractor to prioritize profit over cost control.
- Long contract duration increases exposure to changing requirements.
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 $19.3 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. TRANSITION AND PLANNING
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN TECHNICAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $19.3 million.
What is the period of performance?
Start: 2018-06-20. End: 2023-08-31.
What specific transition and planning activities are covered under this contract, and how are they measured for success?
The provided data lacks specifics on the exact transition and planning activities. Success measurement would typically involve defined milestones, deliverables, and adherence to budgetary constraints. Without this detail, assessing the contract's value is challenging.
What are the key risk factors associated with the Cost Plus Incentive Fee structure for this specific contract?
The primary risk is the potential for cost escalation if the incentive targets are not well-defined or if the contractor prioritizes profit over efficiency. Poorly managed incentive fees can lead to higher-than-necessary expenditures for the government.
How does this contract contribute to the overall effectiveness of the Department of Defense's transition and planning initiatives?
The effectiveness hinges on the quality of the planning and transition support provided by Northrop Grumman. If the services lead to smoother operational transitions, improved resource allocation, or enhanced strategic alignment, the contract is effective. Conversely, inadequate planning could hinder DoD objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002416R6405
Offers Received: 1
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $19,510,054
Exercised Options: $19,510,054
Current Obligation: $19,270,111
Subaward Activity
Number of Subawards: 45
Total Subaward Amount: $17,862,336
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-06-20
Current End Date: 2023-08-31
Potential End Date: 2023-08-31 00:00:00
Last Modified: 2025-08-15
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