DoD Awards Northrop Grumman $40.9M for JWARN Mission App Software Development and Maintenance

Contract Overview

Contract Amount: $40,931,696 ($40.9M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2008-12-16

End Date: 2013-12-15

Contract Duration: 1,825 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: IT

Official Description: DEVELOPMENT, INTEGRATION, AND MAINTENANCE OF JWARN MISSION APPLICATION SOFTWARE

Place of Performance

Location: WINTER PARK, ORANGE County, FLORIDA, 32789

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $40.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DEVELOPMENT, INTEGRATION, AND MAINTENANCE OF JWARN MISSION APPLICATION SOFTWARE Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for critical mission application software. 2. Significant investment of $40.9M over 5 years indicates long-term need for JWARN system. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under Engineering Services (NAICS 541330), a common category for defense IT. 5. The contract's duration and cost warrant scrutiny for ongoing value and efficiency.

Value Assessment

Rating: fair

The total award amount of $40.9M over five years averages approximately $8.18M annually. Without specific performance metrics or comparable contracts for similar mission application software, a precise value assessment is difficult. However, the cost appears substantial for software development and maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a wide range of potential contractors to bid. This method aims to achieve the best value for the government.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it promotes market competition, potentially leading to lower prices and better quality services.

Public Impact

Ensures continued operation and development of the JWARN mission application, vital for defense operations. Supports a major defense contractor, contributing to the defense industrial base. Potential for technological advancements in mission application software through ongoing development. The significant funding allocated could impact other defense priorities or programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (5 years) may lead to cost overruns if not managed effectively.
Lack of specific performance metrics makes it hard to gauge true value for money.
Reliance on a single vendor for an extended period could limit future innovation or cost reduction opportunities.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing environment.
The contract addresses a specific mission need, suggesting strategic importance.
The vendor is a well-established defense contractor with relevant experience.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to defense IT systems. Spending in this area is substantial within the Department of Defense, driven by the need for advanced technological capabilities and ongoing system maintenance. Benchmarks for similar software development contracts can vary widely based on complexity and scope.

Small Business Impact

The data indicates this contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no explicit mention of small business participation or subcontracting goals within the provided data. Further investigation would be needed to determine if small businesses were involved in the supply chain.

Oversight & Accountability

The Department of the Navy, under the Department of Defense, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms would apply. The duration of the contract necessitates ongoing monitoring to ensure performance, cost control, and adherence to requirements.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost creep over the 5-year period.
Lack of detailed performance metrics in the provided data.
Long-term reliance on a single vendor.
The specific mission criticality of JWARN warrants close monitoring.
Ensuring continued technological relevance and avoiding obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. DEVELOPMENT, INTEGRATION, AND MAINTENANCE OF JWARN MISSION APPLICATION SOFTWARE

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 $40.9 million.

What is the period of performance?

Start: 2008-12-16. End: 2013-12-15.

What specific functionalities does the JWARN mission application provide, and how critical are these to current defense operations?

The JWARN (Joint Warning System) mission application is designed to provide real-time situational awareness and warning information to joint forces. Its criticality lies in enabling rapid decision-making and coordinated responses to threats, enhancing operational effectiveness and personnel safety. Specific functionalities likely include threat detection, intelligence dissemination, and command and control support.

Given the $40.9M award over five years, what are the key performance indicators (KPIs) used to measure the success and value of this contract?

Key performance indicators for this contract would likely focus on software reliability (e.g., uptime, bug resolution rate), system performance (e.g., response times, data processing speed), adherence to delivery schedules for updates and new features, and user satisfaction. Measuring the 'value' also involves assessing if the software effectively supports mission objectives and contributes to operational efficiency.

How does the cost of this contract compare to similar software development and maintenance contracts within the DoD or other federal agencies?

A direct cost comparison is challenging without detailed scope and complexity information for other contracts. However, $40.9M over five years for a mission-critical application suggests a significant investment. Factors like the level of customization, integration requirements, security protocols, and the maturity of the technology would influence its cost relative to benchmarks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002409R3003

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: $47,769,925

Exercised Options: $47,769,925

Current Obligation: $40,931,696

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4091

IDV Type: IDC

Timeline