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

State: Rhode Island Government Spending

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 ServicesArchitectural, Engineering, and Related ServicesEngineering 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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