GSA Awards Northrop Grumman $44M for Telecom & Data Support Over 5 Years
Contract Overview
Contract Amount: $43,997,299 ($44.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: General Services Administration
Start Date: 2003-03-12
End Date: 2008-01-31
Contract Duration: 1,786 days
Daily Burn Rate: $24.6K/day
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: TELECOMMUNICATIONS AND DATA ANALYTICAL SUPPORT
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $44.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TELECOMMUNICATIONS AND DATA ANALYTICAL SUPPORT Key points: 1. Significant contract value of $43.99M awarded to a single large contractor. 2. Limited competition likely due to specialized nature of services. 3. Potential risk of cost overruns with Time and Materials pricing. 4. IT sector spending, specifically custom computer programming services.
Value Assessment
Rating: fair
The contract utilized Time and Materials pricing, which can lead to higher costs if not closely managed. Benchmarking against similar custom programming services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting some pre-competition or limited competition. Time and Materials pricing can impact price discovery, potentially leading to higher costs than fixed-price contracts.
Taxpayer Impact: Taxpayer funds were used for this contract. The Time and Materials pricing model presents a risk of increased costs if not managed effectively, potentially impacting the overall value for taxpayers.
Public Impact
Citizens rely on telecommunications and data services for government operations. The duration of the contract (over 5 years) indicates a long-term need for these services. Transparency in how the $44M was spent is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Lack of detailed cost data
- Potential for scope creep
Positive Signals
- Established contractor
- Long-term service provision
Sector Analysis
This contract falls within the IT sector, specifically custom computer programming services. Spending benchmarks for similar services vary widely based on complexity and duration, but $44M over five years represents a substantial investment.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight by the General Services Administration (GSA) is expected. The effectiveness of this oversight in managing Time and Materials costs and ensuring service delivery is key.
Related Government Programs
- Custom Computer Programming Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Time and Materials pricing
- Limited competition
- Lack of detailed cost breakdown
- Long contract duration
Tags
custom-computer-programming-services, general-services-administration, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $44.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TELECOMMUNICATIONS AND DATA ANALYTICAL SUPPORT
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $44.0 million.
What is the period of performance?
Start: 2003-03-12. End: 2008-01-31.
What specific telecommunications and data analytical support was provided under this contract?
The contract focused on custom computer programming services (NAICS 541511) for telecommunications and data analytical support. While the exact deliverables are not detailed, this typically involves software development, system integration, data analysis tools, and potentially network management solutions to support government operations.
What were the primary risks associated with the Time and Materials pricing structure?
The primary risk of Time and Materials (T&M) pricing is the potential for cost overruns, as the final price is not fixed. This structure can incentivize longer project durations and higher labor hours, making effective oversight and cost control critical to prevent exceeding the contract value and ensure taxpayer funds are used efficiently.
How effectively did the GSA manage this contract to ensure value for money?
Assessing the effectiveness of GSA's management requires more data on performance metrics, cost tracking, and any contract modifications. However, the T&M pricing model inherently presents a challenge for ensuring value for money, necessitating robust oversight to prevent inefficiencies and ensure deliverables align with the $44M investment.
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
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 12900 FEDERAL SYSTEMS PARK DR, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $248,000,335
Exercised Options: $182,536,137
Current Obligation: $43,997,299
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4522G
IDV Type: FSS
Timeline
Start Date: 2003-03-12
Current End Date: 2008-01-31
Potential End Date: 2012-03-15 00:00:00
Last Modified: 2021-12-05
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other General Services Administration Contracts
- Software Life Cycle Development — $1.4B (Science Applications International Corporation)
- Task Order (TO) 47qfca21f0018 IS Hereby Awarded to Booz Allen Hamilton, Inc. (BAH) to Provide Enterprise Level Data to the Ousd(c), and ITS Strategic Partners (I.E., DOD Fourth Estate, DOD Departments, and IC Community) — $1.4B (Booz Allen Hamilton Inc)
- Federal Contract — $1.2B (Booz Allen Hamilton Inc)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (Science Applications International Corporation)
- Task Order Award — $1.1B (Booz Allen Hamilton Inc)