VA awards $6.15M contract to Northrop Grumman for Wired Telecommunications Carriers, with a potential value of $23.9M
Contract Overview
Contract Amount: $23,919,197 ($23.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Veterans Affairs
Start Date: 2008-04-01
End Date: 2010-03-31
Contract Duration: 729 days
Daily Burn Rate: $32.8K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: BASE CONTRACT: 101-8V3104 - $6,153,943.17
Place of Performance
Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33708
State: Florida Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $23.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: BASE CONTRACT: 101-8V3104 - $6,153,943.17 Key points: 1. The contract's potential value significantly exceeds its base amount, indicating substantial future spending. 2. Northrop Grumman, a large defense contractor, secured this award. 3. The award was a competitive delivery order, suggesting some level of price discovery. 4. The sector is Wired Telecommunications Carriers, a critical infrastructure area.
Value Assessment
Rating: fair
The base contract value is $6.15M, but the potential value reaches $23.9M. Without more data on task orders and actual spending, it's difficult to assess if the pricing is optimal compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was a competitive delivery order, which implies multiple vendors likely competed. However, the specific competition details and the impact on price discovery are not fully detailed in the provided data.
Taxpayer Impact: The competitive nature suggests taxpayers likely received a reasonable price, but the large potential value warrants scrutiny to ensure cost-effectiveness.
Public Impact
Veterans may experience improved telecommunications services due to this contract. The significant potential value could impact the VA's overall IT budget. This contract supports critical telecommunications infrastructure for the VA.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns given the large gap between base and potential value.
- Lack of detailed competition information for the delivery order.
- Time and Materials contract type can lead to unpredictable costs.
Positive Signals
- Competitive award process.
- Contract awarded to a well-established company.
- Supports essential telecommunications services.
Sector Analysis
The Wired Telecommunications Carriers sector involves the infrastructure for voice and data transmission. Spending in this area is crucial for government operations, and benchmarks vary widely based on the specific services and scale.
Small Business Impact
The data indicates the awardee is Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The Department of Veterans Affairs is the contracting and awarding agency. Standard oversight mechanisms for federal contracts would apply, but specific details on performance monitoring are not provided.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Significant difference between base and potential contract value.
- Time and Materials contract type.
- Limited information on competition specifics.
- Lack of detailed service description.
- No small business participation noted.
Tags
wired-telecommunications-carriers, department-of-veterans-affairs, fl, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $23.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. BASE CONTRACT: 101-8V3104 - $6,153,943.17
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 $23.9 million.
What is the period of performance?
Start: 2008-04-01. End: 2010-03-31.
What was the actual total amount spent on this contract, and how does it compare to the potential value?
The provided data shows a base contract of $6.15M and a potential value of $23.9M. Without the final obligated amount or details on task orders, it's impossible to determine the actual expenditure. Understanding the final spend is crucial for assessing the true value and cost-effectiveness of this contract over its lifecycle.
What specific telecommunications services were procured under this contract, and were there any performance issues?
The contract falls under NAICS code 517110 (Wired Telecommunications Carriers). Specific services are not detailed. Performance data and any associated issues would typically be found in contract performance reports or CPARS. Lack of this information limits a full risk assessment.
How did the competitive delivery order process ensure the best possible price for the government?
A competitive delivery order implies that multiple vendors were solicited, and proposals were evaluated. However, the effectiveness of price discovery depends on the number of bidders, the clarity of the solicitation, and the evaluation criteria. Without knowing these details, it's hard to definitively say if the best price was achieved.
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
Solicitation ID: 200-24-08
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 8110 GATEHOUSE ROAD, FALLS CHURCH, VA, 08
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,919,197
Exercised Options: $23,919,197
Current Obligation: $23,919,197
Parent Contract
Parent Award PIID: V797049A3GP072
IDV Type: IDC
Timeline
Start Date: 2008-04-01
Current End Date: 2010-03-31
Potential End Date: 2010-03-31 00:00:00
Last Modified: 2012-06-14
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