Northrop Grumman awarded $61.8M for Joint Training Operations & Maintenance, highlighting engineering services for DoD
Contract Overview
Contract Amount: $61,822,814 ($61.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2019-07-01
End Date: 2021-01-15
Contract Duration: 564 days
Daily Burn Rate: $109.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: DD JT COLLECTIVE JOINT TRAINING - O&M
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $61.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DD JT COLLECTIVE JOINT TRAINING - O&M Key points: 1. Contract value of $61.8M for joint training operations and maintenance. 2. Services provided by Northrop Grumman Systems Corporation. 3. Contract awarded by the Department of Defense. 4. Engineering services (NAICS 541330) are the primary focus. 5. Contract duration spans from July 1, 2019, to January 15, 2021. 6. Awarded under full and open competition. 7. Delivery order type indicates a specific task within a larger contract. 8. Cost Plus Fixed Fee (CPFF) pricing structure.
Value Assessment
Rating: good
The contract value of $61.8 million for joint training operations and maintenance appears reasonable given the scope of engineering services required by the Department of Defense. While specific benchmarks for this exact type of joint training O&M are not readily available, the pricing structure (Cost Plus Fixed Fee) suggests that costs were monitored and a fixed fee was agreed upon. The duration of the contract (564 days) also provides context for the overall investment. Further analysis would require comparing this to similar large-scale training support contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders (no: 2) suggests a competitive environment, though the exact number of proposals received is not detailed. Full and open competition generally leads to better price discovery and a wider range of technical solutions.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value through an open process.
Public Impact
Military personnel benefit from enhanced joint training capabilities. Improved operational readiness and effectiveness of armed forces. Services likely support training exercises across various military branches. Potential for workforce implications within Northrop Grumman and its subcontractors. Geographic impact is likely widespread, supporting national defense training initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
- Limited information on the specific performance metrics and outcomes of the joint training.
- The duration of the contract is relatively short, suggesting it might be a specific phase or task.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Northrop Grumman is a major defense contractor with extensive experience in complex systems.
- The contract focuses on essential operations and maintenance for joint training.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related operations and maintenance. The defense sector is characterized by large, complex contracts often awarded through competitive bidding processes. Spending in this area is critical for maintaining military readiness and technological superiority. Comparable spending benchmarks would typically involve other large-scale defense support contracts focused on training, simulation, and operational readiness.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the nature and scale of the services, it is unlikely that small businesses would be the primary awardees, though they may participate as subcontractors to Northrop Grumman. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Defense's contracting and program management offices, potentially with support from the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the terms of the Cost Plus Fixed Fee contract, requiring detailed reporting and adherence to performance standards. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive.
Related Government Programs
- DoD Training and Readiness Programs
- Defense Engineering Services Contracts
- Military Operations and Maintenance Spending
- Joint Military Exercises Support
Risk Flags
- Cost Plus Fixed Fee contract type requires careful monitoring to ensure cost efficiency.
- Limited number of bidders (2) could indicate potential barriers to entry or a niche market.
- Specific performance metrics and outcomes are not detailed in the provided data.
Tags
defense, department-of-defense, northrop-grumman, engineering-services, operations-and-maintenance, joint-training, cost-plus-fixed-fee, full-and-open-competition, delivery-order, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. DD JT COLLECTIVE JOINT TRAINING - O&M
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 $61.8 million.
What is the period of performance?
Start: 2019-07-01. End: 2021-01-15.
What is Northrop Grumman's track record with similar DoD joint training contracts?
Northrop Grumman Systems Corporation has a long history of supporting the Department of Defense across a wide range of complex programs, including training, simulation, and operational support. While specific details on their past joint training O&M contracts of this exact nature are not provided in this data, the company is a prime contractor for numerous large-scale defense systems and services. Their extensive experience in areas like command and control, logistics, and advanced technology integration suggests a strong capability to manage and execute such contracts. Performance metrics from previous, related contracts would be crucial for a comprehensive assessment of their track record in this specific domain.
How does the $61.8 million value compare to similar joint training O&M contracts?
Benchmarking the $61.8 million value requires comparing it to contracts with similar scope, duration, and service complexity within the defense sector. Contracts for large-scale joint training operations and maintenance can vary significantly based on the number of personnel involved, the types of training conducted (e.g., live-fire, simulation, cyber), and the duration of support. Without access to a database of comparable contracts, it's challenging to provide a precise benchmark. However, for a multi-year support effort involving significant engineering services for joint training, $61.8 million represents a substantial investment, suggesting a comprehensive scope of work.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of service?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract for joint training O&M is the potential for cost overruns if the contractor's actual costs exceed initial estimates, although the fixed fee provides a ceiling on the profit. While the government pays for allowable costs, the contractor bears the risk of not accurately estimating these costs to ensure their fee is sufficient. For the government, the risk lies in potentially paying higher-than-necessary costs if the contractor is not efficient. Effective oversight, detailed cost tracking, and clear performance standards are crucial to mitigate these risks and ensure value for money.
How effective are engineering services in enhancing joint military training?
Engineering services are crucial for enhancing joint military training by providing the technical expertise needed to develop, maintain, and operate complex training systems, simulations, and infrastructure. This includes designing realistic training environments, ensuring the reliability of simulation equipment, integrating various communication and data systems for joint operations, and providing technical support during exercises. Effective engineering support ensures that training scenarios are accurate, challenging, and representative of real-world operational conditions, thereby improving soldier preparedness and inter-service coordination.
What is the historical spending trend for joint training operations and maintenance within the DoD?
Historical spending trends for joint training operations and maintenance within the Department of Defense (DoD) generally show a consistent and significant allocation of resources. These expenditures are driven by the continuous need to maintain military readiness, adapt to evolving threats, and ensure interoperability between different branches of the armed forces. While specific figures fluctuate year-to-year based on global security postures and budget priorities, the overall investment in training infrastructure, simulation technologies, and operational support services remains a core component of the DoD's budget. Analyzing multi-year spending patterns would reveal trends in technology adoption and the increasing complexity of joint training requirements.
What does the 'Delivery Order' (AW) designation imply for this contract?
The 'Delivery Order' (AW) designation typically means that this contract is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar master agreement. This approach allows the government to procure specific services or supplies as needed, rather than awarding a single, large contract upfront. For this specific contract, it suggests that the $61.8 million award represents a defined scope of work for joint training O&M that was ordered against a broader contract vehicle. This provides flexibility for the government to order different types of services or adjust quantities over time.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0018918RZ008
Offers Received: 2
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $69,294,168
Exercised Options: $69,044,212
Current Obligation: $61,822,814
Actual Outlays: $8,605,034
Subaward Activity
Number of Subawards: 201
Total Subaward Amount: $509,485,708
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0018919DZ006
IDV Type: IDC
Timeline
Start Date: 2019-07-01
Current End Date: 2021-01-15
Potential End Date: 2022-01-15 00:00:00
Last Modified: 2025-10-28
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