DoD Awards Northrop Grumman $68.1M for Engineering Services, Extending Contract by 5 Years
Contract Overview
Contract Amount: $68,165,539 ($68.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2002-03-28
End Date: 2007-09-30
Contract Duration: 2,012 days
Daily Burn Rate: $33.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200207!000055!1700!WA30D !FLEET & INDUSTRIAL SUPPLY CENTER!N0024402C0008 !A!N! !N! !20020328!20020930!064683464!008255408!016435559!N!NORTHROP GRUMMAN INFORMATION T!12005 SUNRISE VALLEY DR !RESTON !VA!20191!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000000000000!N!N!000075847908!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!U!2!001!B! !C!Y!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! !N68524!0001!
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92128
Plain-Language Summary
Department of Defense obligated $68.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200207!000055!1700!WA30D !FLEET & INDUSTRIAL SUPPLY CENTER!N0024402C0008 !A!N! !N! !20020328!20020930!064683464!008255408!016435559!N!NORTHROP GRUMMAN INFORMATION T!12005 SUNRISE VALLEY DR !RESTON !VA!20191!66000!073!06!SAN DIEGO !SAN D… Key points: 1. Significant contract value of $68.1 million awarded to a major defense contractor. 2. Contract duration extended by 5 years, indicating ongoing need and potential for future growth. 3. Competition type is 'Full and Open', suggesting a competitive bidding process. 4. Sector is Defense, a large and consistently funded area of government spending.
Value Assessment
Rating: good
The contract value of $68.1 million for engineering services appears reasonable given the 5-year duration and the nature of services provided by a large contractor like Northrop Grumman. Benchmarking against similar large-scale engineering contracts within the DoD would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition', which generally promotes competitive pricing and ensures the government receives the best value. The specific price discovery mechanisms within this competitive process are not detailed but are expected to be robust.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, securing necessary engineering services at a fair market price.
Public Impact
Supports critical defense engineering functions, contributing to national security. Provides stable employment for personnel involved in defense contracting. Impacts the aerospace and defense industry through significant contract awards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration extension may indicate potential for cost overruns if not managed effectively.
- Reliance on a single large contractor could limit future competitive opportunities.
- Complexity of engineering services makes precise cost-benefit analysis challenging.
Positive Signals
- Awarded through full and open competition, suggesting fair pricing.
- Long-term contract provides stability for critical defense capabilities.
- Northrop Grumman is a reputable contractor with a track record in defense.
Sector Analysis
This contract falls within the Engineering Services sector, a vital component of the Defense industry. Spending in this sector is often driven by complex technological requirements and long-term program needs, with benchmarks varying significantly based on project scope and duration.
Small Business Impact
The data indicates this contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no explicit mention of small business participation in this specific award, suggesting opportunities for subcontracting may exist but are not detailed here.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contract performance and ensuring compliance. Further oversight details would require examination of specific contract clauses and reporting requirements.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Contract duration extension
- Large prime contractor
- Lack of specific service details
- Potential for cost growth over extended period
Tags
engineering-services, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200207!000055!1700!WA30D !FLEET & INDUSTRIAL SUPPLY CENTER!N0024402C0008 !A!N! !N! !20020328!20020930!064683464!008255408!016435559!N!NORTHROP GRUMMAN INFORMATION T!12005 SUNRISE VALLEY DR !RESTON !VA!20191!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000000000000!N!N!000075847908!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !3! ! ! ! ! !99990909!B
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 $68.2 million.
What is the period of performance?
Start: 2002-03-28. End: 2007-09-30.
What specific engineering services are being provided under this contract, and how do they align with current defense priorities?
The contract specifies 'Engineering Services' under NAICS code 541330. While the exact nature of these services is not detailed, they likely encompass a broad range of activities supporting defense systems, research, development, and maintenance. Alignment with current defense priorities would depend on the specific projects undertaken, which are not disclosed in this summary data.
What are the key performance indicators (KPIs) for this contract, and how is Northrop Grumman's performance being measured?
Key performance indicators and specific measurement criteria for this contract are not provided in the summary data. Typically, such contracts would include metrics related to technical performance, schedule adherence, cost control, and quality of deliverables. The Defense Contract Management Agency (DCMA) would be responsible for monitoring these aspects.
What is the historical cost performance of similar engineering service contracts awarded by the Department of Defense to large contractors?
Historical cost performance for similar DoD engineering service contracts can vary widely. Factors such as contract type (e.g., cost-plus vs. fixed-price), complexity of services, and contractor efficiency play significant roles. While 'Full and Open Competition' aims for cost efficiency, long-term, complex contracts can sometimes experience cost growth if not meticulously managed and overseen.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 12005 SUNRISE VALLEY DR, RESTON, VA, 20191
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $80,750,703
Exercised Options: $80,748,728
Current Obligation: $68,165,539
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2002-03-28
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2016-02-03
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