VA awards Northrop Grumman $19.6M for VETSNET Logical Follow-On
Contract Overview
Contract Amount: $19,623,981 ($19.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Veterans Affairs
Start Date: 2010-04-01
End Date: 2011-09-30
Contract Duration: 547 days
Daily Burn Rate: $35.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: VETSNET LOGICAL FOLLOW-ON
Place of Performance
Location: HINES, COOK County, ILLINOIS, 60141
State: Illinois Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $19.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: VETSNET LOGICAL FOLLOW-ON Key points: 1. Contract awarded to a single large business, Northrop Grumman. 2. Spending is within the Wired Telecommunications Carriers sector. 3. Potential for cost overruns exists due to Time and Materials pricing. 4. No small business participation noted.
Value Assessment
Rating: fair
The contract value of $19.6M for a 547-day duration appears reasonable for a logical follow-on. However, the Time and Materials pricing structure warrants close monitoring for potential cost escalation compared to fixed-price contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award type (Delivery Order) and the nature of the follow-on work may limit the scope for future competition.
Taxpayer Impact: Taxpayer funds are being utilized for this contract. The efficiency of the spending will depend on the successful delivery of VETSNET services and the cost controls implemented.
Public Impact
Supports the Department of Veterans Affairs' IT infrastructure. Ensures continuity of critical VETSNET services for veterans. Potential impact on IT service providers in the telecommunications sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- No small business participation
Positive Signals
- Full and open competition
- Follow-on contract for existing system
Sector Analysis
This contract falls within the IT sector, specifically related to telecommunications infrastructure. Spending benchmarks for similar IT support contracts vary widely based on scope and complexity.
Small Business Impact
There is no indication of small business participation in this contract. This represents a missed opportunity to support small businesses within the federal contracting landscape.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight. The use of Time and Materials pricing necessitates robust monitoring to ensure cost-effectiveness and prevent overspending.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Lack of small business participation.
- Reliance on a single large contractor.
- Limited transparency on specific service details.
Tags
wired-telecommunications-carriers, department-of-veterans-affairs, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $19.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. VETSNET LOGICAL FOLLOW-ON
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 $19.6 million.
What is the period of performance?
Start: 2010-04-01. End: 2011-09-30.
What specific IT services does the VETSNET Logical Follow-On entail, and how do they align with VA's strategic IT goals?
The VETSNET Logical Follow-On likely involves maintaining, enhancing, or extending the existing VETSNET system, which is crucial for managing veterans' benefits and healthcare. Its alignment with strategic goals would depend on whether the VA is modernizing, expanding, or sustaining this platform as part of its broader digital transformation efforts.
What are the primary risks associated with the Time and Materials pricing structure for this contract, and what mitigation strategies are in place?
The primary risk of Time and Materials (T&M) pricing is the potential for cost overruns as the contractor is reimbursed for actual labor hours and material costs, with less incentive for efficiency. Mitigation strategies typically include establishing labor hour ceilings, detailed cost tracking, regular progress reviews, and potentially incorporating cost-plus-fixed-fee elements for certain tasks.
How effectively does this contract contribute to the VA's mission of serving veterans, considering the investment and potential risks?
The contract's effectiveness hinges on the successful delivery of VETSNET services, which are vital for veteran benefits administration. While the investment is significant, the T&M pricing introduces cost risk. Effective oversight and management are crucial to ensure the funds translate into reliable IT support that directly benefits veterans and upholds 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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: VA798A-10-RP-0070
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 8110 GATEHOUSE ROAD, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $19,623,981
Exercised Options: $19,623,981
Current Obligation: $19,623,981
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: V797049A3GP072
IDV Type: IDC
Timeline
Start Date: 2010-04-01
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2017-07-13
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