DoD Awards Northrop Grumman $29.6M for Submarine Trainer Maintenance
Contract Overview
Contract Amount: $29,612,905 ($29.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2013-03-13
End Date: 2018-01-31
Contract Duration: 1,785 days
Daily Burn Rate: $16.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF AWARD OF TO N00178-04-D-4091-N409 FOR SUBMARINE MULTI MISSION TEAM TRAINER MAINTENANCE (SUBTM) ENGINEERING SERVICES, OPERATIONS, AND MAINTENANCE SUPPORT
Place of Performance
Location: GROTON, NEW LONDON County, CONNECTICUT, 06349
Plain-Language Summary
Department of Defense obligated $29.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF AWARD OF TO N00178-04-D-4091-N409 FOR SUBMARINE MULTI MISSION TEAM TRAINER MAINTENANCE (SUBTM) ENGINEERING SERVICES, OPERATIONS, AND MAINTENANCE SUPPORT Key points: 1. Significant contract for critical submarine training systems. 2. Northrop Grumman is a major defense contractor, indicating established capabilities. 3. Long contract duration (5 years) suggests a need for sustained support. 4. Engineering services sector is vital for maintaining complex defense assets.
Value Assessment
Rating: good
The contract value of $29.6M over 5 years averages approximately $5.9M annually. This appears reasonable for specialized engineering, operations, and maintenance support for a complex training system like the SUBTM.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely drove price discovery and ensured fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential defense readiness and training capabilities, ensuring the effectiveness of submarine operations.
Public Impact
Ensures readiness of submarine crews through advanced training. Supports the technological edge of the U.S. Navy's submarine force. Contributes to the operational effectiveness of critical defense assets. Maintains specialized engineering expertise within the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in Cost Plus Fixed Fee contracts.
- Long-term reliance on a single contractor for critical systems.
Positive Signals
- Awarded through full and open competition.
- Supports critical national defense capabilities.
- Experienced contractor with a history in defense systems.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense systems. Benchmarks for similar specialized maintenance and engineering support contracts for complex military platforms can vary widely but are generally substantial.
Small Business Impact
The data indicates this award went to a large corporation (Northrop Grumman Systems Corporation) and does not suggest any specific subcontracting opportunities for small businesses in this particular delivery order.
Oversight & Accountability
The award was a delivery order against an existing indefinite-delivery indefinite-quantity (IDIQ) contract (N00178-04-D-4091), suggesting a framework for oversight is already in place. Further oversight would focus on performance and cost control.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost overrun risk inherent in CPFF contracts.
- Potential for vendor lock-in due to specialized knowledge.
- Dependence on a single large contractor for critical training systems.
- Long contract duration may not adapt quickly to evolving technology.
Tags
engineering-services, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF AWARD OF TO N00178-04-D-4091-N409 FOR SUBMARINE MULTI MISSION TEAM TRAINER MAINTENANCE (SUBTM) ENGINEERING SERVICES, OPERATIONS, AND MAINTENANCE 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 $29.6 million.
What is the period of performance?
Start: 2013-03-13. End: 2018-01-31.
What is the specific breakdown of engineering services, operations, and maintenance support provided under this contract?
The contract details are for the Submarine Multi Mission Team Trainer (SUBTM) maintenance. This likely encompasses technical support, software updates, hardware repairs, operational assistance during training exercises, and overall system upkeep to ensure the trainer remains functional and accurate for crew training.
What are the key performance indicators (KPIs) used to measure the success of this contract?
Key performance indicators would likely include trainer uptime/availability, response time for maintenance requests, accuracy of simulation fidelity, successful completion of training objectives by crews, and adherence to budget. Specific KPIs are usually detailed in the contract's statement of work.
How does the Cost Plus Fixed Fee (CPFF) structure impact the government's ability to control costs for this service?
CPFF contracts allow the contractor to recover costs plus a fixed fee. While the fee is fixed, the government bears the risk of cost overruns. Effective oversight, clear scope definition, and robust negotiation are crucial to managing costs under this structure.
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: N0002412R3307
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
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: $29,887,773
Exercised Options: $29,887,773
Current Obligation: $29,612,905
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $3,195,600
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: 2013-03-13
Current End Date: 2018-01-31
Potential End Date: 2018-01-31 00:00:00
Last Modified: 2021-08-03
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