DoD's $27.45M Voice Modernization Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $27,450,522 ($27.5M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Defense
Start Date: 2011-09-16
End Date: 2014-05-31
Contract Duration: 988 days
Daily Burn Rate: $27.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TDC/VOICE MODERNIZATION
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $27.5 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: TDC/VOICE MODERNIZATION Key points: 1. Contract awarded to a large, established defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is substantial, indicating a long-term project. 4. The sector is IT, specifically Wired Telecommunications Carriers.
Value Assessment
Rating: fair
The award amount of $27.45M over 988 days suggests a significant investment. Benchmarking against similar telecommunications modernization projects is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery. The use of a Firm Fixed Price contract further incentivizes cost control by the contractor.
Taxpayer Impact: The competitive nature of the award and fixed-price structure aim to ensure taxpayer funds are used efficiently for this modernization effort.
Public Impact
Modernization of voice systems can improve communication efficiency and security for the Air Force. The long-term nature of the contract implies a sustained need for these services. Potential for disruption during the transition to new voice systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in the provided data.
- Potential for cost overruns if scope creep occurs despite fixed pricing.
- Dependency on a single contractor for critical communication infrastructure.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type.
- Modernization aims to improve technological capabilities.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on telecommunications infrastructure. Spending in this area is critical for maintaining operational readiness and modernizing government systems.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Large prime contractors often utilize subcontractors, but direct small business participation is not evident here.
Oversight & Accountability
The Department of the Air Force is the contracting agency. Oversight would typically involve contract management teams monitoring performance, adherence to schedule, and financial expenditures throughout the contract's lifecycle.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contract awarded to a single large prime contractor.
- Long contract duration increases exposure to changing requirements or technology.
- Potential for vendor lock-in with specific technologies.
- Cybersecurity risks associated with network modernization.
Tags
wired-telecommunications-carriers, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.5 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. TDC/VOICE MODERNIZATION
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 $27.5 million.
What is the period of performance?
Start: 2011-09-16. End: 2014-05-31.
What specific technological advancements does this voice modernization entail, and how do they align with current and future Air Force communication needs?
The provided data lacks specifics on the technological advancements. However, voice modernization typically involves upgrading from legacy analog or TDM-based systems to IP-based solutions, potentially incorporating unified communications, VoIP, and enhanced security features. The alignment with Air Force needs would depend on the specific requirements outlined in the solicitation and the contractor's proposed solution, aiming for improved clarity, reliability, and integration with other defense networks.
Given the $27.45M value and 988-day duration, what are the primary risks associated with the implementation and long-term sustainment of this modernized voice system?
Primary risks include potential integration challenges with existing legacy systems, cybersecurity vulnerabilities introduced by new technologies, contractor performance issues leading to delays or cost overruns (despite fixed price), and the risk of technological obsolescence if the chosen solutions are not future-proof. Long-term sustainment risks involve ensuring continued vendor support, managing software updates, and adapting to evolving communication standards and threats.
How will the effectiveness of this voice modernization be measured to ensure it meets the Department of Defense's operational requirements and provides value for taxpayer investment?
Effectiveness will likely be measured through key performance indicators (KPIs) defined in the contract, such as system uptime, call completion rates, latency, voice quality metrics (e.g., MOS scores), and successful integration with other command and control systems. User satisfaction surveys and post-implementation reviews will also gauge operational impact. The fixed-price nature incentivizes the contractor to meet these defined performance standards to achieve full payment.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 7575 COLSHIRE DRIVE, MCLEAN, VA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $27,450,522
Exercised Options: $27,450,522
Current Obligation: $27,450,522
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877104D0004
IDV Type: IDC
Timeline
Start Date: 2011-09-16
Current End Date: 2014-05-31
Potential End Date: 2014-05-31 00:00:00
Last Modified: 2014-10-21
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