DoD Awards Northrop Grumman $118M Contract for Unspecified Defense Services

Contract Overview

Contract Amount: $11,814,273 ($11.8M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2000-11-02

End Date: 2002-09-30

Contract Duration: 697 days

Daily Burn Rate: $16.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: Key points: 1. Significant contract value of $118.14 million awarded to a major defense contractor. 2. Contract was not competed, raising questions about price discovery and potential value. 3. Long contract duration of 697 days suggests a substantial, ongoing service requirement. 4. The specific service is not detailed, limiting assessment of its necessity and impact.

Value Assessment

Rating: questionable

Without knowing the specific services rendered, it is difficult to benchmark pricing against similar contracts. The 'Cost Plus Fixed Fee' structure can lead to cost overruns if not closely monitored, especially in a non-competed scenario.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits competitive pressure, potentially leading to higher prices and reduced innovation compared to a fully competed contract.

Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible value for the $118.14 million expenditure.

Public Impact

Taxpayers may be paying more than necessary due to the absence of competition. Lack of transparency regarding the services provided hinders public understanding of defense spending. Potential for cost overruns exists with the 'Cost Plus Fixed Fee' contract type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Unspecified services
Cost-plus contract type

Positive Signals

Award to established contractor

Sector Analysis

This contract falls within the broad defense sector, which consistently represents a significant portion of federal spending. Benchmarks for IT or construction services are not applicable here due to the unspecified nature of the defense services.

Small Business Impact

The contract was awarded to Northrop Grumman Systems Corporation, a large prime contractor. There is no indication of small business participation in this specific award.

Oversight & Accountability

The 'NOT COMPETED' status suggests that standard competitive oversight processes may have been bypassed. Further review would be needed to confirm if adequate justification and approval for the sole-source award were documented and followed.

Related Government Programs

Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition may lead to inflated costs.
Unspecified services hinder transparency and accountability.
Potential for cost overruns with 'Cost Plus Fixed Fee' structure.
Long contract duration without clear deliverables raises concerns.
No indication of small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. See the official description on USAspending.

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 $11.8 million.

What is the period of performance?

Start: 2000-11-02. End: 2002-09-30.

What specific defense services were procured under this contract, and how were they essential to national security?

The provided data does not specify the defense services. Understanding the nature of these services is crucial for assessing their necessity and effectiveness. Without this information, it's impossible to determine if the $118.14 million expenditure directly contributed to critical defense objectives or if alternative, potentially more cost-effective solutions were overlooked.

What was the justification for awarding this contract on a sole-source basis rather than through full and open competition?

The justification for a sole-source award is not provided. Typically, such awards require a compelling reason, such as unique capabilities or urgent needs. The absence of competition raises concerns about potential price inflation and missed opportunities for innovation that a competitive bidding process might have fostered, impacting overall value for taxpayer funds.

How effectively was the 'Cost Plus Fixed Fee' structure managed to ensure value and prevent cost overruns?

The effectiveness of the 'Cost Plus Fixed Fee' structure's management is not detailed. This contract type incentivizes contractors to control costs to achieve the fixed fee. However, without insight into the oversight mechanisms and performance metrics used, it's difficult to ascertain if costs were adequately controlled or if the government received optimal value, especially given the non-competitive nature of the award.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 4010 SORRENTO VALLEY BLVD, SAN DIEGO, CA, 92121

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline