DoD Awards Northrop Grumman $46.9M for IGF SPIDER Increment 1A EMD and LRIP
Contract Overview
Contract Amount: $46,884,997 ($46.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2013-08-27
End Date: 2019-07-19
Contract Duration: 2,152 days
Daily Burn Rate: $21.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: IGF:OT:IGF SPIDER INCREMENT 1A EMD AND LRIP.
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $46.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF:OT:IGF SPIDER INCREMENT 1A EMD AND LRIP. Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for custom computer programming services. 2. The contract type is Cost Plus Incentive Fee, indicating potential for shared savings. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration is 2152 days, spanning over 5 years. 5. This award falls under the Defense sector, specifically related to IT services.
Value Assessment
Rating: fair
The contract's Cost Plus Incentive Fee structure allows for shared savings, but the final cost is subject to performance. Benchmarking against similar custom computer programming contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of a Cost Plus Incentive Fee contract type may influence price discovery by incentivizing cost control.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, but the incentive fee structure requires careful monitoring to ensure cost efficiency.
Public Impact
Enhances intelligence gathering capabilities for the Department of Defense. Supports advanced technological development in defense systems. Long-term contract duration suggests a significant and ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contracts can lead to cost overruns if not managed effectively.
- Lack of specific performance metrics makes it difficult to assess value for money.
- The contract's broad scope could lead to scope creep and increased costs.
Positive Signals
- Awarded through full and open competition.
- Incentive fee structure encourages cost efficiency.
- Long-term commitment indicates strategic importance.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Defense IT spending is substantial, and contracts like this are crucial for maintaining technological superiority.
Small Business Impact
The awardee is Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency, which is responsible for oversight. The Cost Plus Incentive Fee structure necessitates robust oversight to ensure contractor performance and cost control.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost overrun risk due to CPIF contract type.
- Potential for scope creep given the EMD/LRIP nature.
- Lack of detailed performance metrics for incentive evaluation.
- Limited transparency on specific cost drivers.
Tags
custom-computer-programming-services, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF:OT:IGF SPIDER INCREMENT 1A EMD AND LRIP.
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $46.9 million.
What is the period of performance?
Start: 2013-08-27. End: 2019-07-19.
What specific performance metrics are tied to the incentive fee, and how do they align with the program's objectives?
The provided data does not detail the specific performance metrics linked to the incentive fee. Understanding these metrics is crucial for assessing whether the incentive structure effectively drives desired outcomes and ensures value for taxpayer money. Without this information, it's difficult to gauge the true effectiveness of the incentive mechanism in achieving program goals and controlling costs.
How does the estimated cost compare to industry benchmarks for similar custom computer programming services in the defense sector?
Benchmarking this contract's cost is challenging without detailed cost breakdowns and specific service requirements. However, the duration and scope suggest a significant investment. A thorough analysis would require comparing the per-unit cost of development and integration against similar, competitively awarded contracts for complex defense IT systems to identify potential cost efficiencies or overruns.
What is the potential impact of this contract on future technological advancements within the DoD's intelligence gathering capabilities?
This contract, focused on EMD and LRIP for the IGF SPIDER system, is likely to significantly advance the DoD's intelligence gathering capabilities. The development and initial production phases are critical for integrating new technologies and functionalities, potentially leading to enhanced situational awareness and decision-making for military operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W15QKN12R0059
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 1304 CONCOURSE DR STE 400, LINTHICUM HEIGHTS, MD, 21090
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,841,466
Exercised Options: $46,957,117
Current Obligation: $46,884,997
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-08-27
Current End Date: 2019-07-19
Potential End Date: 2019-07-19 00:00:00
Last Modified: 2024-07-01
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