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: InformationWired and Wireless Telecommunications (except Satellite)Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP 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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