DoD's $28.7M Northrop Grumman Contract for SMMTT Support: Engineering Services Awarded via Full and Open Competition
Contract Overview
Contract Amount: $28,736,312 ($28.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2007-09-29
End Date: 2014-01-16
Contract Duration: 2,301 days
Daily Burn Rate: $12.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: SMMTT SUPPORT
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $28.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SMMTT SUPPORT Key points: 1. Significant contract value of $28.7 million for specialized engineering services. 2. Awarded to a major defense contractor, Northrop Grumman, indicating established capabilities. 3. Full and open competition suggests a robust price discovery process. 4. Contract duration spans over 6 years, indicating long-term support needs.
Value Assessment
Rating: good
The contract type is Cost No Fee, which is common for R&D or complex services where costs are difficult to predict. The award amount of $28.7M over 6 years suggests a reasonable annual spend for specialized engineering support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to competitive pricing and ensures the government receives the best value. The use of a delivery order under a larger contract structure implies a structured procurement process.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring efficient use of public funds for essential defense services.
Public Impact
Ensures continued support for critical Department of the Navy systems. Supports advanced engineering services vital for national defense. Contributes to the technological capabilities of the U.S. military.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee contract type can limit direct cost control.
- Long contract duration may not reflect current market efficiencies.
Positive Signals
- Awarded via full and open competition.
- Experienced contractor with a strong track record.
- Supports critical defense systems.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the defense industrial base. Spending in this sector is often driven by complex system development, maintenance, and modernization efforts, with benchmarks varying widely based on project scope and technology.
Small Business Impact
The data does not indicate any specific subcontracting goals or participation by small businesses in this particular award. Larger prime contracts often have separate small business subcontracting plans managed at a higher level.
Oversight & Accountability
The use of a delivery order under a larger contract structure suggests that oversight mechanisms are likely in place. However, the Cost No Fee nature requires careful monitoring of performance and deliverables to ensure value.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost No Fee contract type.
- Long contract duration.
- Lack of specific small business participation data.
- Potential for scope creep in engineering services.
Tags
engineering-services, department-of-defense, ri, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SMMTT 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 $28.7 million.
What is the period of performance?
Start: 2007-09-29. End: 2014-01-16.
What specific systems or programs does SMMTT support, and what is the criticality of this support to naval operations?
SMMTT (Surface Mine Warfare Training and Target) support likely pertains to training and target systems for naval mine countermeasures. Its criticality lies in ensuring the effectiveness of training for personnel operating these systems and the reliability of targets used in exercises, directly impacting the Navy's ability to conduct mine warfare operations safely and effectively.
Given the Cost No Fee structure, how does the Department of the Navy ensure cost-effectiveness and prevent potential cost overruns?
With a Cost No Fee (CNF) contract, the contractor is reimbursed for allowable costs but does not receive a fee. The Navy ensures cost-effectiveness through rigorous oversight of contractor performance, detailed review of incurred costs, and clear definition of deliverables and acceptance criteria. Performance metrics and regular progress reviews are crucial to manage the project within the estimated cost.
What was the competitive landscape like for this specific engineering service requirement during the procurement process?
The contract was awarded under 'Full and Open Competition,' indicating that multiple qualified bidders were solicited and allowed to compete. This suggests that the requirement was well-defined enough to attract several interested parties, and the selection was based on the best value offered, rather than being restricted to a limited number of sources.
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: N0002407R3372
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $29,298,309
Exercised Options: $29,298,309
Current Obligation: $28,736,312
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4091
IDV Type: IDC
Timeline
Start Date: 2007-09-29
Current End Date: 2014-01-16
Potential End Date: 2014-01-16 00:00:00
Last Modified: 2020-06-17
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