Northrop Grumman awarded $12.19M contract for WSTARS/WMII systems upgrade by Department of the Army
Contract Overview
Contract Amount: $12,191,881 ($12.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-03-19
End Date: 2023-03-26
Contract Duration: 737 days
Daily Burn Rate: $16.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TO ASSEMBLE, DESIGN, PRODUCE, INTEGRATE, TEST, & INSTALL WSTARS / WMII SYSTEMS AT THE WSOCS. THIS UPGRADE WILL MODERNIZE THE COMPUTING PLATFORM, REPLACE THE FUNCTIONALITIES OF DIMS & WSOMS WORKSTATION, & ENHANCE THE USER-LOGIN WITH A CAC.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $12.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TO ASSEMBLE, DESIGN, PRODUCE, INTEGRATE, TEST, & INSTALL WSTARS / WMII SYSTEMS AT THE WSOCS. THIS UPGRADE WILL MODERNIZE THE COMPUTING PLATFORM, REPLACE THE FUNCTIONALITIES OF DIMS & WSOMS WORKSTATION, & ENHANCE THE USER-LOGIN WITH A CAC. Key points: 1. The contract focuses on modernizing computing platforms and enhancing user login capabilities. 2. This upgrade aims to replace functionalities of existing DIMS & WSOMS workstations. 3. The contract is a Cost Plus Fixed Fee type, indicating potential for cost overruns. 4. The award was made under full and open competition. 5. The contract duration is 737 days, ending in March 2023. 6. The primary contractor, Northrop Grumman, has a significant presence in defense systems.
Value Assessment
Rating: fair
The total contract value of $12.19 million for a system upgrade of this nature appears within a reasonable range for complex defense IT projects. However, without specific benchmarks for WSTARS/WMII system upgrades or comparable modernization efforts, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as costs can exceed initial estimates, potentially impacting overall value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process is generally expected to drive down prices and encourage innovation. The number of bidders is not specified, which limits a deeper analysis of the competitive intensity and its direct impact on the final negotiated price.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, ensuring that government funds are used efficiently.
Public Impact
The Department of the Army benefits from modernized communication and information systems. This upgrade enhances the capabilities of the WSTARS/WMII systems, crucial for military operations. Personnel using the WSTARS/WMII systems will experience improved user login and workstation functionality. The project supports the defense industrial base and potentially creates or sustains jobs within the sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
- Lack of specific details on the number of bidders limits assessment of competitive pressure.
- The contract's scope involves complex system integration, which carries inherent technical risks.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- The upgrade aims to modernize critical military communication systems.
- Northrop Grumman is an established defense contractor with relevant expertise.
Sector Analysis
This contract falls within the Information Technology and Defense sectors, specifically focusing on the manufacturing and integration of specialized communication equipment. The market for such systems is dominated by large defense contractors. Spending in this area is driven by the need for continuous technological advancement to maintain military superiority and operational effectiveness. Comparable spending benchmarks would typically involve other large-scale system integration and modernization projects within the Department of Defense.
Small Business Impact
There is no indication that this contract included small business set-asides. Given the nature of the work and the prime contractor, it is possible that small businesses may be involved as subcontractors. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem remains unclear.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Army. Accountability measures are embedded in the contract terms, including performance requirements and payment schedules. Transparency is generally maintained through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Information Systems Network (DISN)
- Military Satellite Communications (MILSATCOM)
- Command and Control Systems
- Tactical Data Links
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
- Limited public information on the number of bidders for this full and open competition.
- Scope of modernization involves complex system integration.
Tags
department-of-defense, army, northrop-grumman-systems-corporation, it-systems, communications-equipment, system-upgrade, cost-plus-fixed-fee, full-and-open-competition, virginia, defense-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TO ASSEMBLE, DESIGN, PRODUCE, INTEGRATE, TEST, & INSTALL WSTARS / WMII SYSTEMS AT THE WSOCS. THIS UPGRADE WILL MODERNIZE THE COMPUTING PLATFORM, REPLACE THE FUNCTIONALITIES OF DIMS & WSOMS WORKSTATION, & ENHANCE THE USER-LOGIN WITH A CAC.
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 $12.2 million.
What is the period of performance?
Start: 2021-03-19. End: 2023-03-26.
What is the track record of Northrop Grumman Systems Corporation in delivering similar complex IT system upgrades for the Department of Defense?
Northrop Grumman Systems Corporation has a long and extensive track record of delivering complex IT systems and upgrades for the Department of Defense and other federal agencies. They are a major defense contractor involved in various aspects of military technology, including command and control, communications, intelligence, surveillance, and reconnaissance (ISR). Their experience spans large-scale system integration, software development, hardware manufacturing, and lifecycle support. While specific performance data for every contract is not always public, their consistent presence and award of significant contracts suggest a generally accepted capability to handle such projects. However, like any large contractor, they may have faced challenges or delays on specific programs, which are often detailed in program executive office reports or Government Accountability Office (GAO) findings.
How does the $12.19 million cost compare to similar WSTARS/WMII system upgrades or comparable modernization efforts?
Benchmarking the $12.19 million cost for this specific WSTARS/WMII system upgrade against truly comparable efforts is challenging without access to detailed project scopes and market data for identical or highly similar modernization initiatives. However, for large-scale IT modernization within the Department of Defense, which often involves complex integration, cybersecurity requirements, and specialized hardware/software, this figure can be considered moderate. Major system overhauls or replacements can range from tens of millions to billions of dollars. The 'Cost Plus Fixed Fee' (CPFF) nature of this contract means the final cost could deviate from the initial estimate, making direct comparison difficult without knowing the final expenditure and the scope of work achieved. Factors like the number of workstations upgraded, the complexity of the software integration, and the specific hardware components replaced would heavily influence the per-unit or per-system cost.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for the Department of the Army?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type for the Department of the Army is the potential for cost overruns. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's costs exceed initial estimates, the government bears the financial burden. This can lead to the project costing more than initially budgeted. Effective oversight, stringent cost controls, and clear definition of allowable costs are crucial to mitigate this risk. The fixed fee provides some incentive for the contractor to control costs to some extent, as it does not increase with actual costs, but the primary risk remains on the government's side regarding the total expenditure.
What is the expected program effectiveness and impact of the WSTARS/WMII system upgrade?
The expected program effectiveness of the WSTARS/WMII system upgrade is centered on modernizing critical military communication and information infrastructure. By upgrading the computing platform and replacing functionalities of older workstations (DIMS & WSOMS), the system should become more reliable, secure, and efficient. Enhanced user login with CAC (Common Access Card) improves security and streamlines access for authorized personnel. This modernization is crucial for maintaining operational readiness and enabling effective command and control in dynamic environments. The impact is a more robust and potentially faster information flow, better data management, and improved user experience for military personnel relying on these systems for mission-critical tasks.
How has historical spending by the Department of the Army on similar communication system upgrades trended over the past five years?
Historical spending by the Department of the Army on communication system upgrades has been substantial and generally trending upwards, driven by the need to modernize aging infrastructure and adapt to evolving threats and technologies. The Army consistently invests billions annually in IT modernization, including command, control, communications, computers, and intelligence (C4I) systems. Specific spending on upgrades for systems like WSTARS/WMII would be part of broader modernization initiatives. Factors influencing this spending include budget allocations, strategic priorities (e.g., multi-domain operations), and the lifecycle of existing systems. While precise figures for WSTARS/WMII upgrades alone are difficult to isolate without detailed budget breakdowns, the overall trend indicates a sustained commitment to enhancing communication capabilities.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Product/Service Code: IT AND TELECOM - COMPUTE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,191,881
Exercised Options: $12,191,881
Current Obligation: $12,191,881
Subaward Activity
Number of Subawards: 67
Total Subaward Amount: $14,343,127
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J17D0094
IDV Type: IDC
Timeline
Start Date: 2021-03-19
Current End Date: 2023-03-26
Potential End Date: 2023-03-26 12:03:00
Last Modified: 2025-09-14
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