DoD Awards Northrop Grumman $13.4M for Medical & Health Studies Services

Contract Overview

Contract Amount: $9,879,451 ($9.9M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2004-08-20

End Date: 2005-09-16

Contract Duration: 392 days

Daily Burn Rate: $25.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: 200412!003339!2100!W74V8H!DEF. CONTRACT. CMD. - WASHINGTON!W74V8H04C0051 !A!N! !N! ! !20040820!20050731!134622393!134622393!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!5113 LEESBURG PIKE STE 706!FALLS CHURCH !VA!22041!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000004127113!N!N!000009854288!B537!MEDICAL & HEALTH STUDIES !S1 !SERVICES !000 !* !541611!A!A!3! ! ! ! ! !99990909!B! ! !A! !D!U!Y!1!001!N!1B!C!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $9.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200412!003339!2100!W74V8H!DEF. CONTRACT. CMD. - WASHINGTON!W74V8H04C0051 !A!N! !N! ! !20040820!20050731!134622393!134622393!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!5113 LEESBURG PIKE STE 706!FALLS CHURCH !VA!22041!50000!001!11!WASHINGTON !DIST… Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for medical and health studies. 2. The contract is a Time and Materials type, valued at $13,462,239. 3. Awarded by the Department of Defense, Defense Contract Management Agency. 4. The service falls under Administrative Management and General Management Consulting Services. 5. Contract duration is 392 days, with an estimated completion date of September 16, 2005.

Value Assessment

Rating: fair

The contract value of $13,462,239 for a 392-day duration appears reasonable for specialized consulting services. However, without specific benchmarks for 'Medical & Health Studies' within the Administrative Management and General Management Consulting Services sector, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process. The rationale for sole-source is not provided in the data.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these services, as there was no market pressure to drive down costs.

Public Impact

Impacts the Department of Defense's ability to conduct critical medical and health research. Potential for advancements in healthcare and military medicine stemming from these studies. Ensures continuity of essential research services for national security and public health.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Time and Materials contract type can lead to cost overruns
  • Limited transparency on specific deliverables and outcomes

Positive Signals

  • Award to a known large defense contractor
  • Supports critical medical and health studies
  • Definitive contract provides a framework for service delivery

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically consulting. The value of $13.4 million for a 13-month period is substantial for this category, suggesting a complex or high-priority project within the defense sector.

Small Business Impact

The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation or subcontracting in the provided data.

Oversight & Accountability

The award was managed by the Defense Contract Management Agency, suggesting established oversight processes. However, the sole-source nature warrants scrutiny to ensure fair pricing and effective service delivery.

Related Government Programs

  • Administrative Management and General Management Consulting Services
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Sole-source award limits competition and potentially increases cost.
  • Time and Materials contract type poses a risk of cost overruns.
  • Lack of detailed information on specific services and expected outcomes.
  • No indication of small business participation.

Tags

administrative-management-and-general-ma, department-of-defense, va, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200412!003339!2100!W74V8H!DEF. CONTRACT. CMD. - WASHINGTON!W74V8H04C0051 !A!N! !N! ! !20040820!20050731!134622393!134622393!016435559!N!NORTHROP GRUMMAN SPACE & MISSI!5113 LEESBURG PIKE STE 706!FALLS CHURCH !VA!22041!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000004127113!N!N!000009854288!B537!MEDICAL & HEALTH STUDIES !S1 !SERVICES !000 !* !541611!A!A!3! ! ! ! ! !999

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 $9.9 million.

What is the period of performance?

Start: 2004-08-20. End: 2005-09-16.

What specific medical and health studies are being conducted under this contract, and what are the expected outcomes?

The provided data does not specify the exact nature of the medical and health studies. It falls under the broad category of 'Administrative Management and General Management Consulting Services.' To assess value and effectiveness, details on the research objectives, methodologies, and anticipated results are crucial. Without this information, it's difficult to determine the true impact and necessity of this significant expenditure.

What is the justification for awarding this contract on a sole-source basis, and were any alternatives considered?

The data indicates the contract was 'NOT COMPETED,' implying a sole-source award. The justification for this approach is not provided. Typically, sole-source contracts are used when only one vendor can meet the requirement, or in urgent situations. Understanding the rationale is key to evaluating whether competition was genuinely impossible or if it represents a missed opportunity for cost savings through a competitive process.

How does the Time and Materials pricing structure mitigate risks of cost overruns for these specialized consulting services?

Time and Materials (T&M) contracts, while offering flexibility, inherently carry a risk of cost overruns as the final price is not fixed. For specialized consulting, effective oversight, clear task orders, and diligent monitoring of labor hours and material costs are essential to control spending. The contract's duration and value suggest a need for robust management controls to ensure the $13.4 million is spent efficiently and effectively towards the defined study objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&DSPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 5113 LEESBURG PIKE STE 706, FALLS CHURCH, VA, 22041

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $9,879,451

Exercised Options: $9,879,451

Current Obligation: $9,879,451

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2004-08-20

Current End Date: 2005-09-16

Potential End Date: 2005-09-16 00:00:00

Last Modified: 2023-02-24

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