DoD's $18.3M VLMS TIER 2 Equipment contract awarded to Northrop Grumman Information Technology Inc

Contract Overview

Contract Amount: $18,354,427 ($18.4M)

Contractor: Northrop Grumman Information Technology Inc

Awarding Agency: Department of Defense

Start Date: 2008-03-05

End Date: 2009-05-05

Contract Duration: 426 days

Daily Burn Rate: $43.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VLMS TIER 2 EQUIPMENT

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: VLMS TIER 2 EQUIPMENT Key points: 1. The contract value of $18.3 million represents a significant investment in telecommunications infrastructure. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The fixed-price contract type aims to control costs and provide predictability. 4. The duration of 426 days indicates a medium-term project. 5. The contract was awarded to a single vendor, Northrop Grumman Information Technology Inc. 6. The contract falls under the Wired Telecommunications Carriers industry.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the VLMS TIER 2 Equipment. However, the total award of $18.3 million for a 426-day period suggests a substantial per-day expenditure. Comparing this to similar telecommunications equipment procurements would be necessary to assess if the pricing was competitive. The firm fixed-price nature, however, implies an effort to lock in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 6 bidders (implied by 'no': 6) suggests a healthy level of competition for this requirement. This competitive environment typically leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition likely resulted in a more cost-effective outcome for taxpayers by driving down prices through vendor rivalry.

Public Impact

The Department of Defense benefits from upgraded telecommunications capabilities. This contract supports the provision of wired telecommunications services. The geographic impact is likely within the operational areas of the Department of the Air Force. The contract supports the technology sector workforce involved in telecommunications equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness of the VLMS TIER 2 Equipment.
The specific nature of 'TIER 2 EQUIPMENT' is not defined, raising questions about its criticality and function.
The contract duration of just over a year might indicate a need for more frequent upgrades or a pilot program.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract type helps in budget certainty and cost control.
The contract was awarded to a well-established defense contractor, Northrop Grumman.

Sector Analysis

This contract falls within the Information Technology and Telecommunications sector, specifically Wired Telecommunications Carriers. The market for such equipment is characterized by rapid technological advancements and significant investment by both government and commercial entities. Comparable spending benchmarks would involve analyzing other large-scale telecommunications infrastructure procurements by defense agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Northrop Grumman voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which incentivizes the contractor to meet specifications within budget. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may be internal.

Related Government Programs

Defense Telecommunications Infrastructure
Network Equipment Procurement
Wired Communication Systems
Information Technology Services for DoD

Risk Flags

Lack of specific equipment details
Absence of performance metrics
Potential for technology obsolescence given the contract award date

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. VLMS TIER 2 EQUIPMENT

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2008-03-05. End: 2009-05-05.

What is the specific function and criticality of the 'VLMS TIER 2 EQUIPMENT' procured under this contract?

The specific function and criticality of the 'VLMS TIER 2 EQUIPMENT' are not detailed in the provided data. 'VLMS' could potentially stand for a variety of systems, such as a Video/Voice/Logistics Management System or a Virtual Location Monitoring System. 'TIER 2' typically implies a secondary level of service or equipment within a larger infrastructure. Without further context, it's difficult to ascertain its precise role, but it is likely related to supporting wired telecommunications operations for the Department of the Air Force. Understanding its function is crucial for assessing the overall value and necessity of the $18.3 million expenditure.

How does the awarded price of $18.3 million compare to market rates for similar telecommunications equipment during the contract period (2008-2009)?

Directly comparing the $18.3 million award to market rates for similar telecommunications equipment procured between March 2008 and May 2009 is challenging without specific product details. The 'VLMS TIER 2 EQUIPMENT' is a broad description. However, the fact that it was awarded under full and open competition with 6 bidders suggests that the market had multiple offerings. To perform a robust comparison, one would need to identify comparable equipment (e.g., routers, switches, transmission gear) from that era and analyze their average selling prices or government contract awards. The firm fixed-price nature indicates the government sought to cap costs, but the initial bid price relative to market benchmarks would determine the value for money.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for telecommunications equipment, such metrics might include uptime guarantees, data transmission speeds, latency limits, equipment reliability rates, and response times for maintenance or support. The absence of this information makes it difficult to quantitatively assess the contractor's performance and whether the equipment met the operational needs of the Department of the Air Force. Future analysis would benefit from accessing the contract's statement of work (SOW) or performance requirements documents.

What is Northrop Grumman Information Technology Inc.'s track record with similar telecommunications equipment contracts for the Department of Defense?

Northrop Grumman Information Technology Inc. is a major defense contractor with a substantial history of providing IT and telecommunications solutions to the Department of Defense. While this specific contract was for 'VLMS TIER 2 EQUIPMENT', Northrop Grumman has experience in areas like network infrastructure, command and control systems, and communication security. Their track record would generally be considered extensive, but a detailed review would involve examining past performance evaluations, any contract disputes or overruns, and their success in delivering similar complex systems within budget and schedule for DoD agencies. This particular award suggests they were deemed capable of fulfilling the requirement at the time.

How has spending on wired telecommunications carriers by the Department of the Air Force evolved since this contract was awarded in 2008?

Spending on wired telecommunications carriers by the Department of the Air Force has likely evolved significantly since this $18.3 million contract awarded in 2008. Post-2008, the DoD has increasingly focused on modernizing its networks, embracing cloud technologies, enhancing cybersecurity, and adopting software-defined networking (SDN) and 5G capabilities. While specific figures require detailed budget analysis, overall spending trends would reflect a shift towards more advanced, secure, and flexible communication systems, potentially involving different types of vendors and technologies beyond traditional wired infrastructure. The nature of 'TIER 2 EQUIPMENT' might also have changed or become integrated into broader network solutions.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Titan II Inc. (UEI: 016435559)

Address: 7575 COLSHIRE DRIVE, MCLEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $73,446,358

Exercised Options: $73,446,358

Current Obligation: $18,354,427

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877104D0004

IDV Type: IDC

Timeline