DoD's $84.7M GCSS-J SD&I Contract Awarded to Northrop Grumman Under Full and Open Competition
Contract Overview
Contract Amount: $84,743,669 ($84.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2010-02-28
End Date: 2015-08-31
Contract Duration: 2,010 days
Daily Burn Rate: $42.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: GCSS-J SOFTWARE DEVELOPMENT AND INTERGRATION (SD&I) SUPPORT
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $84.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: GCSS-J SOFTWARE DEVELOPMENT AND INTERGRATION (SD&I) SUPPORT Key points: 1. Contract value of $84.7M for software development and integration. 2. Awarded to Northrop Grumman Systems Corporation. 3. Procured under full and open competition. 4. Classified under R&D in Physical, Engineering, and Life Sciences. 5. Contract type is Cost Plus Award Fee.
Value Assessment
Rating: fair
The Cost Plus Award Fee (CPAF) contract type can lead to higher costs if not managed effectively. Benchmarking against similar R&D contracts is difficult due to the specialized nature of software development and integration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the CPAF structure requires careful oversight to ensure cost efficiency.
Taxpayer Impact: Taxpayer funds are utilized for advanced software development, with potential for cost overruns if performance incentives are not aligned with cost control.
Public Impact
Supports the Department of Defense's mission-critical systems. Enhances the capabilities of the GCSS-J platform. Contributes to technological advancement in defense software. Potential for long-term system sustainment and upgrades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure requires diligent oversight.
- Potential for scope creep in R&D projects.
- Limited visibility into specific performance metrics.
Positive Signals
- Full and open competition utilized.
- Supports critical defense information systems.
- Awarded to a major defense contractor.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector, specifically focusing on software development and integration for defense systems. Spending benchmarks in this niche area are highly variable.
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, which is common for large-scale defense development contracts.
Oversight & Accountability
The Cost Plus Award Fee structure necessitates strong oversight from the Defense Information Systems Agency to ensure contractor performance aligns with cost objectives and taxpayer value.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Cost Plus Award Fee structure.
- R&D projects inherently carry uncertainty.
- Potential for contractor performance issues.
- Reliance on a single large contractor.
Tags
research-and-development-in-the-physical, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $84.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. GCSS-J SOFTWARE DEVELOPMENT AND INTERGRATION (SD&I) SUPPORT
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $84.7 million.
What is the period of performance?
Start: 2010-02-28. End: 2015-08-31.
What specific performance metrics are used to determine award fees, and how do they ensure value for money?
Award fees are typically tied to achieving specific technical, schedule, and cost objectives outlined in the contract. Effective metrics would include measurable progress on key software functionalities, adherence to development timelines, and cost control within defined parameters. The agency must rigorously track these metrics to ensure the contractor is incentivized to deliver high-quality work efficiently, thereby maximizing value for taxpayer investment.
What are the primary risks associated with the CPAF contract type in this R&D context?
The primary risk with CPAF in R&D is the potential for cost escalation if the award fee criteria are too easily met or poorly defined, leading to higher contractor profits without commensurate increases in value. There's also a risk that the focus shifts to achieving award fee targets rather than true innovation or addressing the most critical technical challenges. Robust government oversight and clear, objective performance metrics are crucial to mitigate these risks.
How does this contract contribute to the overall effectiveness of the GCSS-J system?
This contract is crucial for the ongoing development and integration of the GCSS-J system, which is vital for managing logistics and resource information within the Department of Defense. Successful execution ensures the system remains current, capable of meeting evolving operational needs, and interoperable with other defense platforms. Effective SD&I support directly enhances the system's reliability and its ability to provide timely, accurate data for decision-making.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
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
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $109,876,676
Exercised Options: $96,784,915
Current Obligation: $84,743,669
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102808D2023
IDV Type: IDC
Timeline
Start Date: 2010-02-28
Current End Date: 2015-08-31
Potential End Date: 2015-08-31 00:00:00
Last Modified: 2017-09-05
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