TRW Inc. awarded $152.79M for ADP System Acquisition Support Services by Defense Threat Reduction Agency

Contract Overview

Contract Amount: $9,835,194 ($9.8M)

Contractor: THE BDM Corporation of Saudi Arabia

Awarding Agency: Department of Defense

Start Date: 1999-10-20

End Date: 2003-12-31

Contract Duration: 1,533 days

Daily Burn Rate: $6.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: 200011!9700!001336!ZT01 !DEFENSE THREAT REDUCTION AGENCY !OSIA0197C0006 !A!*!P00017 !19991020!20000930!152791505!004179453!004179453!N!* !TRW INC !1 FEDERAL SYSTEMS PARK DR !FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !0001!+000000350000!N!N!000000000000!D314!ADP SYSTEM ACQUISITION SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !5044!3!*!*!C!B!A!*!D !U!U!1!001!N!1A!Z!N!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: FAIRFAX, FAIRFAX (CITY) County, VIRGINIA, 22030, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $9.8 million to THE BDM CORPORATION OF SAUDI ARABIA for work described as: 200011!9700!001336!ZT01 !DEFENSE THREAT REDUCTION AGENCY !OSIA0197C0006 !A!*!P00017 !19991020!20000930!152791505!004179453!004179453!N!* !TRW INC !1 FEDERAL SYSTEMS PARK DR !FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !0001!+000000350000!N!N!000000000000!D314… Key points: 1. Contract awarded for ADP System Acquisition Support Services, indicating a need for specialized IT and administrative support. 2. The contract was not competed, raising questions about potential cost efficiencies and market-driven pricing. 3. Awarded as a Cost Plus Fixed Fee contract, which can incentivize cost overruns if not closely monitored. 4. The duration of the contract (over 4 years) suggests a long-term need for these services. 5. The contractor, TRW Inc., is a significant player in the defense and aerospace sector. 6. The geographic location of the contractor in Fairfax, VA, places it within a hub of federal contracting activity.

Value Assessment

Rating: fair

The contract value of $152.79 million over approximately four years for ADP System Acquisition Support Services appears substantial. Without specific benchmarks for similar services from the Defense Threat Reduction Agency or comparable entities, it is difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can sometimes lead to higher costs compared to fixed-price contracts if cost controls are not rigorously enforced. Further analysis would require comparing the scope of work and deliverables to other contracts for similar IT support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from the price discovery and potential cost savings that typically arise from a competitive bidding process. It is important to understand the justification for the sole-source award to ensure it was appropriate and in the best interest of the government.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This necessitates strong oversight to ensure fair pricing and prevent contractor overcharging.

Public Impact

The primary beneficiaries are likely the Defense Threat Reduction Agency (DTRA) and its personnel, who will receive enhanced ADP system acquisition support. Services delivered include crucial support for the acquisition of automated data processing (ADP) systems, vital for modern defense operations. The geographic impact is concentrated around the contractor's location in Fairfax, Virginia, and the DTRA's operational areas. Workforce implications include employment opportunities for IT professionals and support staff at TRW Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Cost Plus Fixed Fee contract type requires diligent oversight to manage costs effectively.
Sole-source award justification needs to be robust to ensure it was the most advantageous approach for the government.

Positive Signals

TRW Inc. is a well-established contractor with a history in defense and technology.
The contract addresses a critical need for ADP system acquisition support within the Defense Threat Reduction Agency.
The contract duration suggests a stable, long-term relationship for essential services.

Sector Analysis

This contract falls within the Information Technology (IT) and professional services sector, specifically focusing on acquisition support for automated data processing systems. The IT services market for the federal government is substantial, with significant spending allocated to system acquisition, development, and support. Contracts like this are crucial for agencies to modernize their technological infrastructure and maintain operational effectiveness. Benchmarking this contract's value would involve comparing it to other IT support services contracts awarded by defense agencies, considering factors like scope, duration, and complexity.

Small Business Impact

There is no indication from the provided data that this contract involved small business set-asides or subcontracting goals. As a sole-source award to a large prime contractor (TRW Inc.), the direct impact on the small business ecosystem is likely minimal unless TRW Inc. voluntarily engages small businesses for subcontracting opportunities. Further investigation into TRW's subcontracting plans would be necessary to assess any indirect impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Threat Reduction Agency (DTRA) and potentially the Department of Defense's Inspector General. Given the Cost Plus Fixed Fee structure, rigorous financial oversight, performance monitoring, and compliance checks are essential to ensure that funds are used appropriately and that the contractor meets all contractual obligations. Transparency would depend on the agency's reporting practices and any public disclosures made regarding contract performance and expenditures.

Related Government Programs

Defense IT Support Services
ADP System Acquisition
Federal IT Procurement
Contractor Support Services
Defense Threat Reduction Agency Contracts

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.8 million to THE BDM CORPORATION OF SAUDI ARABIA. 200011!9700!001336!ZT01 !DEFENSE THREAT REDUCTION AGENCY !OSIA0197C0006 !A!*!P00017 !19991020!20000930!152791505!004179453!004179453!N!* !TRW INC !1 FEDERAL SYSTEMS PARK DR !FAIRFAX !VA!22033!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !0001!+000000350000!N!N!000000000000!D314!ADP SYSTEM ACQUISITION SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !5044!3!*!*!C!B!A!*!D !U!U!1!001!N!1A!Z!N!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!

Who is the contractor on this award?

The obligated recipient is THE BDM CORPORATION OF SAUDI ARABIA.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $9.8 million.

What is the period of performance?

Start: 1999-10-20. End: 2003-12-31.

What is the specific justification for awarding this contract on a sole-source basis to TRW Inc.?

The provided data indicates the contract was 'NOT COMPETED'. Sole-source awards are typically justified when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique technical expertise, proprietary technology, or urgent requirements where a full and open competition would be impractical or detrimental to the government's interests. For this specific contract, the Defense Threat Reduction Agency would have had to document the rationale, such as TRW Inc. possessing unique knowledge or capabilities essential for the ADP System Acquisition Support Services that no other contractor could provide within the required timeframe or specifications. Without access to the agency's sole-source justification documentation, the precise reasons remain unconfirmed.

How does the Cost Plus Fixed Fee (CPFF) structure potentially impact the final cost and contractor incentives?

A Cost Plus Fixed Fee (CPFF) contract reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or when there is uncertainty in the cost of performance. While the fixed fee provides the contractor with a stable profit margin, it can create an incentive to increase costs, as the fee remains constant regardless of the total expenditure. Conversely, the government bears the risk of cost overruns. Effective management of a CPFF contract requires stringent oversight of allowable costs, regular performance reviews, and clear communication to ensure the contractor remains focused on efficiency and achieving the contract objectives within reasonable cost parameters.

What is TRW Inc.'s track record with the Defense Threat Reduction Agency and similar contracts?

TRW Inc. (now part of Northrop Grumman) has a significant history of contracting with the U.S. Department of Defense, including the Defense Threat Reduction Agency (DTRA). While this specific contract (OSIA0197C0006) was awarded in 1999, TRW has been involved in various defense-related IT, systems engineering, and acquisition support services. Their track record generally reflects experience with complex government programs. However, a comprehensive assessment would require examining performance reviews, past issues, and the success of previous DTRA contracts awarded to TRW or its successor entities to understand their reliability and effectiveness in delivering similar services.

Can the value of this contract be benchmarked against similar IT acquisition support services contracts?

Benchmarking this $152.79 million contract for ADP System Acquisition Support Services requires comparing it to contracts with similar scope, duration, and complexity, particularly those awarded by defense agencies. Factors such as the specific services provided (e.g., requirements analysis, system design, procurement support, testing), the level of technical expertise required, and the contract type (CPFF in this case) are crucial for a meaningful comparison. Without access to a database of comparable contracts with detailed service descriptions and pricing, a precise benchmark is challenging. However, given the duration (over 4 years) and the specialized nature of defense IT acquisition support, the contract value appears substantial, necessitating careful oversight to ensure cost-effectiveness.

What were the historical spending patterns for ADP System Acquisition Support Services by the Defense Threat Reduction Agency prior to this contract?

The provided data does not include historical spending patterns for ADP System Acquisition Support Services by the Defense Threat Reduction Agency (DTRA) prior to this contract (awarded in 1999). To understand historical trends, one would need to access DTRA's procurement history databases or federal spending transparency tools that cover periods before 1999. Analyzing past expenditures would help determine if this contract represented an increase or decrease in spending for such services, whether the agency typically relied on sole-source awards for these needs, and how spending has evolved over time in response to technological advancements and agency requirements.

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1501 BDM WAY, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline