DoD Awards Northrop Grumman $9.2M for Training Support, Sole-Source Contract
Contract Overview
Contract Amount: $9,228,967 ($9.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2023-10-31
End Date: 2026-01-21
Contract Duration: 813 days
Daily Burn Rate: $11.4K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TRAINING SUPPORT
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $9.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TRAINING SUPPORT Key points: 1. Significant contract awarded to a major defense contractor. 2. Sole-source award raises questions about competition and potential cost savings. 3. Engineering services sector is critical for defense readiness. 4. Long duration suggests ongoing need for these support services.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking against similar training support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these training support services.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The long contract duration (over 2 years) means sustained potential for overspending. Lack of transparency in sole-source awards can erode public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of competition
Positive Signals
- Critical training support for the Army
- Experienced contractor
Sector Analysis
This contract falls under Engineering Services, a vital sector for the Department of Defense. Spending in this area is often high due to the complexity of military operations and technology.
Small Business Impact
This contract was awarded to a large corporation and does not appear to include provisions for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets requirements. Transparency in reporting is crucial.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
- Limited transparency
Tags
engineering-services, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TRAINING 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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $9.2 million.
What is the period of performance?
Start: 2023-10-31. End: 2026-01-21.
What specific training support is being provided, and why was it deemed necessary to award this contract sole-source?
The specific nature of the training support is not detailed in the provided data. However, sole-source awards are typically justified when only one responsible source can provide the required supplies or services, or in cases of urgent need. Further justification from the Department of the Army would be required to fully understand the necessity and rationale behind this procurement approach.
What are the potential risks associated with a Cost Plus Fixed Fee contract for training support?
CPFF contracts carry the risk of cost overruns if the contractor's costs exceed initial estimates, as the government agrees to pay the actual costs plus a fixed fee. For training support, this could mean unexpected expenses related to personnel, materials, or unforeseen logistical challenges, potentially increasing the total expenditure beyond initial projections.
How does the lack of competition impact the overall effectiveness and value for money in this contract?
The absence of competition significantly reduces the government's leverage to negotiate favorable pricing, potentially leading to a lower value for money. Effectiveness could also be impacted if alternative, potentially more innovative or cost-effective solutions exist but were not explored due to the sole-source award.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
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: $11,847,942
Exercised Options: $9,228,967
Current Obligation: $9,228,967
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W31P4Q21D0020
IDV Type: IDC
Timeline
Start Date: 2023-10-31
Current End Date: 2026-01-21
Potential End Date: 2026-01-21 12:01:00
Last Modified: 2025-12-22
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