DoD's $30.7M Increment I Labor Contract with Northrop Grumman: Custom Computer Programming Services
Contract Overview
Contract Amount: $30,712,751 ($30.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2013-12-16
End Date: 2019-06-15
Contract Duration: 2,007 days
Daily Burn Rate: $15.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: INCREMENT I LABOR
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $30.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: INCREMENT I LABOR Key points: 1. Contract awarded for custom computer programming services. 2. Northrop Grumman Systems Corporation is the sole awardee. 3. Significant contract value of over $30.7 million. 4. Contract duration spans from December 2013 to June 2019.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar custom programming services contracts is difficult without more detailed scope information.
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 mechanisms and how they were evaluated to ensure fair and reasonable pricing are not detailed.
Taxpayer Impact: Taxpayer funds were used for custom computer programming services, with the final cost influenced by the cost-plus-fixed-fee structure and competitive award.
Public Impact
Defense spending on IT services supports military operations and technological advancement. Contractors like Northrop Grumman play a vital role in developing and maintaining complex defense systems. Transparency in contract details is crucial for public trust and accountability in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of detailed performance metrics makes value assessment challenging.
- Limited insight into the specific programming services rendered.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical defense needs.
- Established contractor with a history of government work.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is substantial across government agencies, supporting everything from administrative functions to advanced defense systems. Benchmarks vary widely based on complexity and service level.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) is responsible for oversight. The cost-plus-fixed-fee structure necessitates diligent monitoring to control costs and ensure performance objectives are met.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Lack of detailed performance metrics.
- Limited insight into specific services provided.
- Potential for cost escalation without stringent oversight.
Tags
custom-computer-programming-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. INCREMENT I LABOR
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 $30.7 million.
What is the period of performance?
Start: 2013-12-16. End: 2019-06-15.
What was the specific scope of 'Increment I Labor' and how did it contribute to the overall program objectives?
The provided data lacks specifics on the 'Increment I Labor' scope. Understanding the precise nature of the custom computer programming services, such as software development, system integration, or maintenance, is crucial for assessing its contribution to the Department of Defense's program objectives and overall value.
How effectively was the Cost Plus Fixed Fee structure managed to prevent cost overruns and ensure fair pricing?
Effective management of a Cost Plus Fixed Fee contract requires rigorous oversight of incurred costs and contractor performance. Without detailed reporting on cost variances, profit margins, and adherence to the fixed fee, it's difficult to ascertain the effectiveness of the management controls in place to safeguard taxpayer funds.
What performance metrics were used to evaluate the success of these custom computer programming services?
The data does not specify the performance metrics used to evaluate the success of the custom computer programming services. Key performance indicators (KPIs) related to software quality, delivery timelines, system functionality, and user satisfaction are essential for a comprehensive assessment of contract effectiveness and contractor performance.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003912R0057
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,531,378
Exercised Options: $31,531,378
Current Obligation: $30,712,751
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-12-16
Current End Date: 2019-06-15
Potential End Date: 2019-06-15 00:00:00
Last Modified: 2023-04-19
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