DoD's $58M REMIS Systems Support Contract Awarded to Northrop Grumman Under Full and Open Competition
Contract Overview
Contract Amount: $58,134,758 ($58.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2016-02-01
End Date: 2021-07-31
Contract Duration: 2,007 days
Daily Burn Rate: $29.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF RELIABILITY AND MAINTAINABILITY INFORMATION SYSTEM (REMIS) SYSTEMS SUSTAINMENT AND DEVELOPMENT SUPPORT
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $58.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF RELIABILITY AND MAINTAINABILITY INFORMATION SYSTEM (REMIS) SYSTEMS SUSTAINMENT AND DEVELOPMENT SUPPORT Key points: 1. Contract awarded to a large, established defense contractor. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract spans over 5 years, indicating a significant long-term investment. 4. Custom computer programming services are a critical component of defense IT infrastructure. 5. The contract value is substantial, requiring careful oversight.
Value Assessment
Rating: good
The contract value of $58.1M over 5 years appears reasonable for complex systems sustainment and development. Benchmarking against similar custom computer programming services contracts for defense systems would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified vendors to bid, fostering a competitive environment that should drive down costs and ensure fair market pricing.
Taxpayer Impact: The competitive bidding process likely resulted in a fair price for taxpayers, avoiding potential overpayment associated with less competitive procurement methods.
Public Impact
Ensures continued operation and modernization of critical Air Force IT systems. Supports the reliability and maintainability of essential defense information. Potential for technological advancements in defense systems through development support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or evolving requirements.
- Reliance on a single large contractor for critical systems.
- Potential for cost overruns if not closely monitored.
Positive Signals
- Full and open competition promotes fair pricing.
- Firm Fixed Price contract type limits cost risk for the government.
- Experienced contractor likely brings significant expertise.
Sector Analysis
This contract falls within the IT sector, specifically custom computer programming services, which are vital for modernizing and maintaining defense infrastructure. Spending in this area is significant across the federal government, with a focus on cybersecurity and system integration.
Small Business Impact
The data indicates this contract was not awarded to small businesses. While large contracts often go to prime contractors, opportunities for small businesses may exist as subcontractors to Northrop Grumman.
Oversight & Accountability
The long duration and significant value necessitate robust oversight from the Department of the Air Force to ensure performance, manage contract modifications, and control costs effectively. Regular performance reviews and audits are crucial.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Contractor dependency
- Long-term sustainment challenges
- Potential for scope creep
- Evolving technology risks
Tags
custom-computer-programming-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $58.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF RELIABILITY AND MAINTAINABILITY INFORMATION SYSTEM (REMIS) SYSTEMS SUSTAINMENT AND DEVELOPMENT SUPPORT
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 Air Force).
What is the total obligated amount?
The obligated amount is $58.1 million.
What is the period of performance?
Start: 2016-02-01. End: 2021-07-31.
What specific performance metrics are in place to ensure the reliability and maintainability of the REMIS systems under this contract?
The contract likely includes specific performance work statement (PWS) requirements and key performance indicators (KPIs) related to system uptime, response times, bug resolution, and the successful implementation of new features. The Department of the Air Force would monitor these metrics through regular reporting and performance reviews to ensure Northrop Grumman meets its obligations.
How will the government ensure that the firm fixed price remains competitive throughout the contract's five-year duration, especially given potential technological shifts?
While the contract is firm fixed price, mechanisms for managing changes and ensuring continued value are essential. This includes strict change order control, regular market research on pricing for similar services, and potentially incorporating clauses for periodic reviews or adjustments based on significant, unforeseen market shifts or technological advancements.
What is the government's strategy for mitigating risks associated with relying on a single contractor for such a critical IT system over an extended period?
Mitigation strategies may include fostering strong communication and collaboration with the contractor, clearly defining contract deliverables and performance expectations, and maintaining the option to conduct competitive re-procurement at contract end. The government might also encourage knowledge transfer and documentation to reduce dependency and facilitate future transitions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $72,535,681
Exercised Options: $59,061,102
Current Obligation: $58,134,758
Subaward Activity
Number of Subawards: 455
Total Subaward Amount: $59,961,816
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA873214D0028
IDV Type: IDC
Timeline
Start Date: 2016-02-01
Current End Date: 2021-07-31
Potential End Date: 2021-07-31 00:00:00
Last Modified: 2021-03-01
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