VA awards $14.6M contract to Northrop Grumman for optical network, impacting 4 locations
Contract Overview
Contract Amount: $14,561,501 ($14.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Veterans Affairs
Start Date: 2005-03-08
End Date: 2011-08-15
Contract Duration: 2,351 days
Daily Burn Rate: $6.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INSTSALL AND MAITAIN AN OPTICAL RING NETWORK CONNECTING WASHINGTON, PHILADELPHIA AND MARITNSBURG, WV.
Place of Performance
Location: MARTINSBURG, BERKELEY County, WEST VIRGINIA, 25401
Plain-Language Summary
Department of Veterans Affairs obligated $14.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: INSTSALL AND MAITAIN AN OPTICAL RING NETWORK CONNECTING WASHINGTON, PHILADELPHIA AND MARITNSBURG, WV. Key points: 1. Contract awarded to a single, large vendor, Northrop Grumman. 2. The contract covers installation and maintenance of a critical optical ring network. 3. Spending is concentrated in West Virginia, impacting 4 specific locations. 4. The fixed-price contract aims to control costs over its duration.
Value Assessment
Rating: good
The contract value of $14.6 million over approximately 6.5 years appears reasonable for establishing and maintaining a dedicated optical ring network across multiple states. Benchmarking against similar large-scale telecommunications infrastructure projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was awarded as a competitive delivery order, suggesting that multiple vendors had the opportunity to bid. The competitive nature likely contributed to price discovery and a more favorable outcome for the government.
Taxpayer Impact: The competitive award process suggests taxpayers received fair value for the funds expended on this critical network infrastructure.
Public Impact
Ensures reliable communication for VA facilities in Washington, Philadelphia, and West Virginia. Supports critical healthcare and administrative operations through robust network connectivity. Potential for improved data transfer speeds and network stability for VA users. Long-term maintenance ensures continued operational effectiveness of the network.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Vendor lock-in potential after contract completion.
- Reliance on a single vendor for critical infrastructure maintenance.
Positive Signals
- Competitive award process.
- Firm fixed-price contract type.
- Long-term maintenance included.
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, specifically for establishing and maintaining a private optical network. Spending benchmarks for similar government telecommunications infrastructure projects vary widely based on scale and technology, but this appears to be a significant investment for the VA.
Small Business Impact
The data does not indicate any specific provisions or participation by small businesses in this contract. The prime contractor, Northrop Grumman, is a large corporation, suggesting this was likely not a small business set-aside or subcontracting effort.
Oversight & Accountability
The contract was awarded by the Department of Veterans Affairs, indicating internal oversight. The competitive delivery order process suggests a structured procurement approach. Further oversight would involve monitoring performance and adherence to contract terms.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Vendor lock-in
- Reliance on a single vendor for critical infrastructure
- Potential for price increases upon contract renewal
- Geographic concentration of services
Tags
wired-telecommunications-carriers, department-of-veterans-affairs, wv, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $14.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. INSTSALL AND MAITAIN AN OPTICAL RING NETWORK CONNECTING WASHINGTON, PHILADELPHIA AND MARITNSBURG, WV.
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $14.6 million.
What is the period of performance?
Start: 2005-03-08. End: 2011-08-15.
What was the specific competitive process used for this delivery order, and how did it ensure fair pricing?
The data indicates this was a 'COMPETITIVE DELIVERY ORDER.' While specifics are not provided, this typically means multiple vendors were solicited for proposals. The competitive nature allows for price discovery and negotiation, aiming to secure the best value for the government. The firm fixed-price structure further locks in costs, protecting against cost overruns.
What are the potential risks associated with relying on Northrop Grumman for the long-term maintenance of this critical network infrastructure?
The primary risk is vendor lock-in, where the VA becomes dependent on Northrop Grumman for future upgrades, repairs, and potentially higher prices upon contract renewal. There's also a risk of service disruption if the vendor faces financial difficulties or operational issues. Ensuring clear performance metrics and service level agreements in the contract is crucial for mitigation.
How effectively does this optical ring network support the VA's mission, particularly in terms of healthcare delivery and administrative functions?
A reliable optical ring network is fundamental for modern healthcare and administrative operations, enabling secure and high-speed data transmission for electronic health records, telehealth services, and internal communications. Its effectiveness hinges on consistent uptime, low latency, and sufficient bandwidth, which this contract aims to provide and maintain, thereby directly supporting the VA's mission.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Huntington Ingalls Industries, Inc (UEI: 967362331)
Address: 8110 GATEHOUSE ROAD, FALLS CHURCH, VA, 08
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,798,999
Exercised Options: $14,561,501
Current Obligation: $14,561,501
Parent Contract
Parent Award PIID: V797049A3GP072
IDV Type: IDC
Timeline
Start Date: 2005-03-08
Current End Date: 2011-08-15
Potential End Date: 2011-08-15 00:00:00
Last Modified: 2015-01-29
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