NASA's $24.9M Software Integration Contract with Northrop Grumman Faces Scrutiny Over Cost and Competition
Contract Overview
Contract Amount: $24,934,553 ($24.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2005-10-31
End Date: 2011-04-30
Contract Duration: 2,007 days
Daily Burn Rate: $12.4K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: SUPPORT OF SYSTEM AND APPLICATION SOFTWARE FOR HIGH PERFORMANCE TECHNICAL COMPUTERS FOR THE SOFTWARE INTEGRATION OFFICE
Place of Performance
Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $24.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SUPPORT OF SYSTEM AND APPLICATION SOFTWARE FOR HIGH PERFORMANCE TECHNICAL COMPUTERS FOR THE SOFTWARE INTEGRATION OFFICE Key points: 1. The contract awarded to Northrop Grumman Systems Corporation for high-performance technical computer support represents a significant investment in software integration. 2. Competition was limited, with a 'COMPETITIVE DELIVERY ORDER' suggesting a broader initial competition that narrowed down. 3. Potential risks include cost overruns given the 'COST PLUS AWARD FEE' contract type and the long duration of the contract. 4. The sector is IT, specifically Computer Systems Design Services, a critical area for government operations.
Value Assessment
Rating: questionable
The Cost Plus Award Fee structure can incentivize cost growth. Benchmarking against similar contracts for high-performance computing software support is difficult without more granular data, but the $24.9M value over its period suggests a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was a 'COMPETITIVE DELIVERY ORDER' under a larger agreement, indicating some level of initial competition but potentially limited direct competition for this specific order. The 'COST PLUS AWARD FEE' structure may not always drive the most aggressive price discovery.
Taxpayer Impact: The substantial value of this contract means taxpayer funds are significantly allocated to this specific IT support service, necessitating careful oversight to ensure value for money.
Public Impact
Taxpayers are funding advanced computing infrastructure crucial for NASA's technical operations. The long contract duration (2005-2011) implies a sustained need for these specialized services. The reliance on a single contractor for this critical support raises questions about long-term cost-effectiveness and innovation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure
- Limited competition for the delivery order
- Long contract duration
Positive Signals
- Supports critical high-performance computing
- Awarded by NASA, a key government agency
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across government, supporting everything from basic IT infrastructure to highly specialized scientific computing like NASA's. Benchmarks are difficult without specific technical requirements, but large contracts often involve significant investment.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Large, complex IT contracts like this are often awarded to large prime contractors, potentially limiting direct opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
The contract type (Cost Plus Award Fee) and its duration suggest a need for robust oversight from NASA to ensure performance objectives are met and costs are managed effectively. Tracking award fees and cost variances would be key oversight activities.
Related Government Programs
- Computer Systems Design Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for cost overruns due to CPAF structure
- Limited competition for the delivery order
- Long contract duration may reduce flexibility
- Lack of small business participation noted
Tags
computer-systems-design-services, national-aeronautics-and-space-administr, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $24.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SUPPORT OF SYSTEM AND APPLICATION SOFTWARE FOR HIGH PERFORMANCE TECHNICAL COMPUTERS FOR THE SOFTWARE INTEGRATION OFFICE
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $24.9 million.
What is the period of performance?
Start: 2005-10-31. End: 2011-04-30.
What specific high-performance computing capabilities does this contract support, and how does its cost compare to similar capabilities procured by other agencies or private sector entities?
The contract supports 'SYSTEM AND APPLICATION SOFTWARE' for high-performance technical computers. Without detailed technical specifications and performance metrics, a direct cost comparison is challenging. However, the $24.9M value over six years indicates a significant investment in specialized IT infrastructure, suggesting a need for detailed justification of costs against the unique requirements of NASA's scientific and engineering missions.
What were the primary factors leading to a 'COMPETITIVE DELIVERY ORDER' rather than a fully open and competitive bid for this specific requirement?
A 'COMPETITIVE DELIVERY ORDER' typically implies that the order was competed among pre-qualified vendors or under an existing indefinite-delivery/indefinite-quantity (IDIQ) contract. This suggests that while the initial contract vehicle may have undergone full and open competition, this specific order might have had a more limited pool of eligible bidders, potentially impacting the breadth of competition and price discovery.
How effectively did the 'COST PLUS AWARD FEE' structure incentivize Northrop Grumman to achieve cost savings and optimal performance for NASA?
The effectiveness of a Cost Plus Award Fee (CPAF) contract hinges on the clarity and attainability of performance metrics and the fairness of the award fee structure. While CPAF aims to balance cost control with performance incentives, it can also lead to cost growth if not rigorously overseen. NASA's oversight would be critical in ensuring that award fees were tied to demonstrable value and cost efficiency.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,000,000
Exercised Options: $30,000,000
Current Obligation: $24,934,553
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00T99ALD0207
IDV Type: GWAC
Timeline
Start Date: 2005-10-31
Current End Date: 2011-04-30
Potential End Date: 2011-04-30 00:00:00
Last Modified: 2018-09-12
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