DoD's $30.9M Northrop Grumman Contract for NUWC Code 2515 IGF: Engineering Services Over 6 Years
Contract Overview
Contract Amount: $30,885,850 ($30.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2014-01-17
End Date: 2020-09-24
Contract Duration: 2,442 days
Daily Burn Rate: $12.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TRAINER EVOLUTION FOR NUWC CODE 2515 IGF::OT::IGF
Place of Performance
Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841
Plain-Language Summary
Department of Defense obligated $30.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TRAINER EVOLUTION FOR NUWC CODE 2515 IGF::OT::IGF Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for engineering services. 2. Significant spending of $30.9M over approximately 6.7 years. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 5. The NAICS code 541330 indicates a focus on engineering services.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risks of cost escalation. Benchmarking against similar engineering service contracts would be necessary to fully assess pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. However, the Cost Plus Fixed Fee structure may still allow for costs to exceed initial expectations.
Taxpayer Impact: Taxpayer funds are utilized for engineering services. While competition aims for efficiency, the CPFF structure warrants monitoring to ensure costs remain reasonable.
Public Impact
Supports critical Navy research and development efforts. Contract duration of over 6 years indicates a long-term need for these services. Potential for follow-on work or expansion of services based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration may not reflect current market efficiencies.
Positive Signals
- Full and open competition utilized.
- Contract supports essential defense engineering services.
Sector Analysis
This contract falls under Engineering Services, a sector crucial for defense and technological advancement. Spending benchmarks for similar large-scale engineering contracts with the DoD would provide further context.
Small Business Impact
The data does not indicate any specific provisions or awards to small businesses under this contract. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Navy, a component of the DoD, implying established oversight mechanisms. However, the CPFF structure necessitates diligent monitoring of costs and performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Lack of specific performance metrics in provided data.
- Potential for cost overruns.
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 $30.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TRAINER EVOLUTION FOR NUWC CODE 2515 IGF::OT::IGF
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 $30.9 million.
What is the period of performance?
Start: 2014-01-17. End: 2020-09-24.
What was the final cost compared to the initial estimated cost for this CPFF contract?
The Cost Plus Fixed Fee (CPFF) contract structure means the final cost is determined by actual allowable costs plus a fixed fee. Without knowing the initial estimates or the breakdown of actual costs incurred, it's impossible to definitively state the final cost relative to expectations. CPFF contracts are designed to provide flexibility for evolving project needs but can sometimes lead to costs exceeding initial projections if not managed tightly.
How did the competition process ensure the best value was achieved for this engineering services contract?
The 'full and open competition' designation suggests that multiple bidders were allowed to submit proposals, which is a standard method for promoting competition and achieving best value. However, the effectiveness of this competition in securing the best value is also influenced by the evaluation criteria used, the clarity of the requirements, and the specific terms of the Cost Plus Fixed Fee award, which can sometimes obscure true cost efficiency.
What specific engineering services were provided under this contract, and how do they align with current technological needs?
The contract specifies 'Engineering Services' under NAICS code 541330 for NUWC Code 2515 IGF. While the contract ID suggests a focus on Integrated Guidance Facility (IGF) or similar technical areas, the precise nature of the services rendered over its 2014-2020 duration is not detailed. Assessing alignment with current needs would require understanding the evolution of IGF technology and the specific tasks performed by Northrop Grumman.
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: N0002413R3291
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $32,512,178
Exercised Options: $32,512,178
Current Obligation: $30,885,850
Subaward Activity
Number of Subawards: 128
Total Subaward Amount: $18,313,114
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4091
IDV Type: IDC
Timeline
Start Date: 2014-01-17
Current End Date: 2020-09-24
Potential End Date: 2020-09-24 00:00:00
Last Modified: 2024-01-26
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