DoD's $76.4M Joint Training Support Contract Awarded to Northrop Grumman Amidst Full and Open Competition
Contract Overview
Contract Amount: $76,383,521 ($76.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2024-05-01
End Date: 2027-01-18
Contract Duration: 992 days
Daily Burn Rate: $77.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: JOINT STAFF, J7, DEPUTY DIRECTORATE FOR JOINT TRAINING (DDJT), COLLECTIVE JOINT TRAINING SUPPORT.
Place of Performance
Location: SUFFOLK, SUFFOLK CITY County, VIRGINIA, 23435
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $76.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: JOINT STAFF, J7, DEPUTY DIRECTORATE FOR JOINT TRAINING (DDJT), COLLECTIVE JOINT TRAINING SUPPORT. Key points: 1. The contract is for collective joint training support, indicating a critical need for advanced simulation and training capabilities. 2. Northrop Grumman, a major defense contractor, secured this award through full and open competition. 3. The contract's Cost Plus Fixed Fee (CPFF) structure may present cost control challenges if not managed diligently. 4. The sector is primarily IT and Engineering Services, supporting the Department of Defense's operational readiness.
Value Assessment
Rating: good
The contract value of $76.4M over approximately 3 years appears reasonable for specialized joint training support. Benchmarking against similar large-scale simulation and training contracts would provide a more precise assessment, but the pricing seems within expected ranges for this type of service.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust process for soliciting bids and ensuring fair market pricing. This method typically leads to better price discovery and value for the government.
Taxpayer Impact: Full and open competition generally maximizes taxpayer value by encouraging multiple bidders to offer competitive pricing and innovative solutions.
Public Impact
Enhances joint military readiness and interoperability through advanced training. Supports the Department of Defense's strategic objectives for modern warfare. Potential for technological advancements in military simulation and training. Impacts personnel training schedules and resource allocation within the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can lead to cost overruns if not closely monitored.
- Long duration (approx. 3 years) requires sustained oversight.
- Reliance on a single large contractor for critical training functions.
Positive Signals
- Awarded through full and open competition.
- Supports critical national defense training needs.
- Experienced contractor with a strong track record.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting advanced simulation and training for joint military operations. Spending in this area is crucial for maintaining technological superiority and operational effectiveness, with benchmarks varying widely based on the complexity and scale of the training provided.
Small Business Impact
The data indicates this contract was awarded to Northrop Grumman Systems Corporation and does not specify any subcontracting goals for small businesses. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy, acting on behalf of the DoD, is responsible for oversight. The CPFF structure necessitates rigorous financial oversight and performance monitoring to ensure cost efficiency and effective delivery of training services.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost overruns due to CPFF structure.
- Potential for scope creep.
- Long contract duration requires sustained oversight.
- Dependence on contractor's technical expertise.
- Ensuring adequate small business participation.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $76.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. JOINT STAFF, J7, DEPUTY DIRECTORATE FOR JOINT TRAINING (DDJT), COLLECTIVE JOINT TRAINING SUPPORT.
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 $76.4 million.
What is the period of performance?
Start: 2024-05-01. End: 2027-01-18.
What specific training capabilities does this contract aim to enhance, and how will success be measured?
This contract focuses on collective joint training support, likely encompassing advanced simulation, scenario development, and exercise execution for multiple military branches. Success will be measured through key performance indicators (KPIs) related to training realism, participant feedback, achievement of training objectives, and overall improvement in joint force readiness and interoperability.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context?
The primary risk with a CPFF contract is that the government may incur costs exceeding initial estimates if the contractor's expenses are higher than anticipated, even though the fixed fee remains constant. Effective oversight is crucial to manage scope creep, ensure efficient resource utilization, and prevent unnecessary cost escalation.
How does this investment contribute to the overall effectiveness and modernization of US military training programs?
This investment is crucial for modernizing US military training by providing sophisticated, realistic, and adaptable joint training environments. It enables forces to practice complex, multi-domain operations, enhancing their ability to respond to evolving global threats and ensuring seamless integration across different service branches, thereby boosting overall combat effectiveness.
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: N0018924R3016
Offers Received: 1
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: $90,002,283
Exercised Options: $90,002,283
Current Obligation: $76,383,521
Actual Outlays: $8,264,225
Subaward Activity
Number of Subawards: 43
Total Subaward Amount: $22,553,910
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D8194
IDV Type: IDC
Timeline
Start Date: 2024-05-01
Current End Date: 2027-01-18
Potential End Date: 2027-01-18 00:00:00
Last Modified: 2025-12-19
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