DoD awards Northrop Grumman $18M for Engineering Services, facing limited competition
Contract Overview
Contract Amount: $18,060,993 ($18.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2018-11-20
End Date: 2023-05-31
Contract Duration: 1,653 days
Daily Burn Rate: $10.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LABOR
Place of Performance
Location: POINT MUGU NAWC, VENTURA County, CALIFORNIA, 93042
Plain-Language Summary
Department of Defense obligated $18.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LABOR Key points: 1. Significant contract value of $18.06 million awarded. 2. Northrop Grumman Systems Corporation is the sole awardee. 3. Contract spans over 4 years, indicating a long-term need. 4. Engineering Services sector is critical for defense operations.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award amount is $18.06 million, but specific pricing details and benchmarks are not readily available.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'NOT AVAILABLE FOR COMPETITION', suggesting limited or no competitive bidding. This lack of competition may impact price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible value for the $18.06 million spent on these engineering services.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. The long duration of the contract suggests a sustained need for these services. Dependence on a single contractor for critical engineering services could pose a risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost Plus Fixed Fee contract type
- Lack of detailed pricing information
Positive Signals
- Award to a known defense contractor
- Long contract duration indicates sustained need
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for the Department of Defense's operational capabilities. Spending in this sector is often substantial due to the complexity and specialized nature of defense engineering projects.
Small Business Impact
The awardee, Northrop Grumman Systems Corporation, is a large defense contractor. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Navy. Oversight would focus on ensuring the fixed fee is justified and that costs are managed effectively throughout the contract's duration.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition may lead to higher costs.
- Cost Plus Fixed Fee contracts carry inherent risk of cost overruns.
- Lack of detailed service description hinders value assessment.
- Potential for contractor lock-in due to limited competition.
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LABOR
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 $18.1 million.
What is the period of performance?
Start: 2018-11-20. End: 2023-05-31.
What specific engineering services are being procured, and how do they align with current defense priorities?
The data indicates 'Engineering Services' without further specificity. Understanding the exact nature of these services is crucial to assess their alignment with current defense priorities and the necessity of a sole-source or limited competition award. Without this detail, it's difficult to gauge the strategic value and potential risks associated with this procurement.
What is the justification for awarding this contract on a limited competition basis, and what steps were taken to ensure fair pricing?
The justification for limited competition is not provided in the data. Typically, this occurs when only one source can meet the requirement. Steps to ensure fair pricing in such scenarios often involve detailed cost analysis, comparison to similar contracts, and negotiation. The absence of this information raises concerns about potential overpricing and the government's ability to secure the best value.
How is the performance of Northrop Grumman Systems Corporation being monitored under this Cost Plus Fixed Fee contract to ensure effective service delivery and cost control?
Effective oversight of a Cost Plus Fixed Fee contract requires rigorous monitoring of performance metrics and cost expenditures. The Department of the Navy would typically assign contract officers and technical representatives to track progress, validate costs, and ensure that the fixed fee remains appropriate for the services rendered. Regular reporting and performance reviews are essential to manage risks and ensure value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6893616R0069
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 925 OYSTER BAY RD, BETHPAGE, NY, 11714
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,060,994
Exercised Options: $18,060,994
Current Obligation: $18,060,993
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $249,200
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: N6893619D0007
IDV Type: IDC
Timeline
Start Date: 2018-11-20
Current End Date: 2023-05-31
Potential End Date: 2023-05-31 00:00:00
Last Modified: 2025-09-09
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