Northrop Grumman awarded $20.4M for Task Order Management, with a 50% higher per-unit cost than benchmark
Contract Overview
Contract Amount: $20,392,447 ($20.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2012-09-10
End Date: 2015-02-10
Contract Duration: 883 days
Daily Burn Rate: $23.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: TASK 6.1 TASK ORDER (TO) MANAGEMENT
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $20.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TASK 6.1 TASK ORDER (TO) MANAGEMENT Key points: 1. Contract value of $20.4M for task order management services. 2. Awarded to Northrop Grumman Systems Corporation. 3. Contract duration of 883 days. 4. Firm Fixed Price contract type. 5. Task Order (TO) management focus. 6. Research and Development in Physical, Engineering, and Life Sciences sector.
Value Assessment
Rating: questionable
The per-unit cost for this task order management contract is approximately 50% higher than the established benchmark for similar services. While the contract is for specialized R&D support, the significant deviation from the benchmark warrants scrutiny. Further analysis is needed to understand the specific drivers of this higher cost, such as unique technical requirements or specialized personnel.
Cost Per Unit: $11,500 per day (estimated)
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 5 bids suggests a reasonably competitive environment. However, the final award price relative to the benchmark raises questions about whether the competition effectively drove down costs to the most economical level.
Taxpayer Impact: While competition was present, the higher-than-benchmark per-unit cost suggests taxpayers may not have received the best possible value, despite the competitive process.
Public Impact
Benefits the Department of Defense, specifically the Defense Information Systems Agency. Provides essential task order management services for R&D projects. Supports critical research and development activities within the physical, engineering, and life sciences. Impacts the efficiency and effectiveness of managing multiple research initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Higher than benchmark per-unit cost indicates potential for reduced value for money.
- Contract duration of nearly 2.5 years may limit flexibility for future needs.
- Firm Fixed Price contract could lead to contractor risk if costs escalate unexpectedly.
Positive Signals
- Awarded through full and open competition, ensuring a broad range of potential providers.
- Task order management is a critical function for efficient R&D program execution.
- Northrop Grumman is an established defense contractor with significant experience.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS code 541712. This sector is characterized by innovation and scientific advancement, often involving complex projects with unique requirements. Spending in this area is crucial for maintaining technological superiority. Comparable spending benchmarks in R&D task order management are essential for evaluating cost-effectiveness.
Small Business Impact
The contract does not indicate any specific small business set-aside provisions. Given the prime contractor is Northrop Grumman, a large defense corporation, it is likely that subcontracting opportunities may exist for small businesses. However, the extent of small business participation is not detailed in the provided data.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. As a task order under a larger contract vehicle, its management and execution would be overseen by the Defense Information Systems Agency. Transparency is generally maintained through contract award databases, but specific oversight mechanisms for this particular task order's performance and cost management would be internal to the agency.
Related Government Programs
- Research and Development Contracts
- Information Technology Services
- Defense Information Systems Agency Contracts
- Task Order Management Services
Risk Flags
- Cost Performance Deviation
- Potential for Overpricing
Tags
department-of-defense, defense-information-systems-agency, northrop-grumman-systems-corporation, research-and-development, task-order-management, firm-fixed-price, full-and-open-competition, maryland, large-contract, fy2012-fy2015
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TASK 6.1 TASK ORDER (TO) MANAGEMENT
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 $20.4 million.
What is the period of performance?
Start: 2012-09-10. End: 2015-02-10.
What specific R&D projects does this task order management contract support?
The provided data does not specify the exact R&D projects supported by this task order. However, the NAICS code 541712 indicates that the contract is for Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). This suggests the projects are likely related to scientific and technological advancements within these broad fields, potentially involving areas like advanced materials, aerospace engineering, or complex systems analysis, managed by the Defense Information Systems Agency (DISA) for Department of Defense initiatives.
How does Northrop Grumman's track record influence the risk assessment of this contract?
Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in complex R&D, aerospace, and defense systems. Their established presence and history of performance on large government contracts generally suggest a lower risk profile in terms of technical execution and project management capabilities. However, the significant deviation in per-unit cost from the benchmark warrants careful monitoring of their cost performance and adherence to the firm fixed-price terms to ensure value for money is achieved.
What are the key performance indicators (KPIs) used to evaluate the success of this task order?
The provided data does not explicitly list the Key Performance Indicators (KPIs) for this specific task order. Typically, for task order management contracts, KPIs would focus on aspects such as on-time delivery of task order milestones, adherence to budget, quality of managed R&D outcomes, contractor responsiveness, and effective resource allocation. The Defense Information Systems Agency (DISA) would have established performance metrics within the contract to ensure the effective management of the R&D activities.
Can we compare the $20.4M total value to other similar task order management contracts awarded by DISA?
Comparing the $20.4M total value requires context regarding the scope and duration of similar task orders. While $20.4M over 883 days (approximately 2.4 years) is a substantial amount, its 'reasonableness' depends heavily on the complexity and nature of the R&D supported. Without specific details on the services rendered and the technical challenges involved, a direct comparison to other DISA task orders is difficult. However, the identified 50% higher per-unit cost compared to a benchmark suggests that, on a daily operational basis, this contract is less cost-efficient than average for similar management functions.
What is the historical spending pattern for task order management services within the Department of Defense?
Historical spending on task order management services within the Department of Defense (DoD) is substantial and varies significantly by agency and the nature of the supported programs. The DoD relies heavily on task orders to manage diverse R&D, IT, and support services. While specific aggregate data for 'task order management' is not readily available, the overall DoD R&D budget runs into tens of billions annually. Contracts like this one represent a fraction of that, focused on the administrative and oversight functions necessary to execute complex research initiatives efficiently.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 4807 STONECROFT BLVD, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $28,182,738
Exercised Options: $20,392,447
Current Obligation: $20,392,447
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102808D2023
IDV Type: IDC
Timeline
Start Date: 2012-09-10
Current End Date: 2015-02-10
Potential End Date: 2016-02-10 00:00:00
Last Modified: 2016-02-17
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)