Treasury's IRS awards $56.4M Northrop Grumman contract for software reproduction, raising value concerns
Contract Overview
Contract Amount: $56,411,197 ($56.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of the Treasury
Start Date: 2003-11-04
End Date: 2005-03-31
Contract Duration: 513 days
Daily Burn Rate: $110.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: INTEGRATION SUPPORT CONTRACT (ISC)
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $56.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: INTEGRATION SUPPORT CONTRACT (ISC) Key points: 1. Contract value of $56.4M for software reproduction. 2. Awarded to Northrop Grumman Systems Corporation. 3. Full and open competition was utilized. 4. Contract duration of 513 days. 5. Cost Plus Award Fee (CPA) pricing structure.
Value Assessment
Rating: questionable
The contract's Cost Plus Award Fee structure, combined with a lack of detailed performance metrics, makes it difficult to assess value for money. The $56.4M award for software reproduction over 513 days appears high without clear justification.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the CPA pricing structure may limit price discovery and incentivize cost overruns.
Taxpayer Impact: The significant award amount raises questions about taxpayer impact, especially if the value for money is not clearly demonstrated.
Public Impact
Taxpayers may be overpaying for software reproduction services. Lack of transparency in performance metrics hinders public trust. Potential for cost overruns due to the CPA contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for software reproduction.
- Cost Plus Award Fee structure.
- Lack of detailed performance metrics.
Positive Signals
- Full and open competition.
- Awarded to a reputable contractor.
Sector Analysis
The IT sector, particularly software reproduction, can be prone to cost overruns if not managed tightly. Benchmarks for similar contracts are essential for evaluating cost-effectiveness.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this contract award.
Oversight & Accountability
Oversight of this contract should focus on ensuring performance metrics are met and that the CPA structure does not lead to excessive costs for taxpayers.
Related Government Programs
- Software Reproducing
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- High contract value.
- Cost Plus Award Fee structure.
- Lack of specific performance metrics.
- Potential for cost overruns.
- Limited transparency on services rendered.
Tags
software-reproducing, department-of-the-treasury, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $56.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. INTEGRATION SUPPORT CONTRACT (ISC)
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $56.4 million.
What is the period of performance?
Start: 2003-11-04. End: 2005-03-31.
What specific software reproduction tasks were performed, and how do they justify the $56.4M cost?
The provided data lacks specifics on the software reproduction tasks. A detailed breakdown of services rendered, including the complexity and volume of software handled, is necessary to justify the $56.4M expenditure. Without this, it's challenging to ascertain if the cost aligns with industry standards for similar reproduction efforts.
What are the key performance indicators (KPIs) for this contract, and how is Northrop Grumman being evaluated?
The data does not specify the key performance indicators (KPIs) or the evaluation criteria for Northrop Grumman. For a Cost Plus Award Fee contract, clear, measurable KPIs are crucial to ensure the contractor meets objectives and to justify any award fees paid. The absence of this information raises concerns about accountability and performance management.
How does the $56.4M contract value compare to industry benchmarks for similar software reproduction services?
Without specific details on the scope and complexity of the software reproduction, a direct comparison to industry benchmarks is difficult. However, $56.4M for a 513-day contract in this area warrants scrutiny. A thorough analysis against comparable government or commercial contracts for similar IT services would be needed to determine if this represents a fair market price.
Industry Classification
NAICS: Manufacturing › Manufacturing and Reproducing Magnetic and Optical Media › Software Reproducing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 12011 SUNSET HILLS ROAD, RESTON, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $2,091,767,681
Exercised Options: $2,091,767,681
Current Obligation: $56,411,197
Timeline
Start Date: 2003-11-04
Current End Date: 2005-03-31
Potential End Date: 2005-03-31 00:00:00
Last Modified: 2009-08-14
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