DoD's $26.7M contract with Northrop Grumman for administrative management services awarded via full and open competition
Contract Overview
Contract Amount: $26,696,005 ($26.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2005-09-09
End Date: 2009-01-15
Contract Duration: 1,224 days
Daily Burn Rate: $21.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TAS::21 2020::TAS 200512!503732!2100!W81XWH!US ARMY MEDICAL RESEARCH ACQ ACT!GS23F8079H !C!N! !Y!W81XWH05F0664! !20050909!20060316!064681021!008255408!016435559!N!NORTHROP GRUMMAN INFORMATION T!8110 GATEHOUSE RD !FALLS CHURCH !VA!22042!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000004018148!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541690!E! !6! ! ! ! ! !20200930!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $26.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TAS::21 2020::TAS 200512!503732!2100!W81XWH!US ARMY MEDICAL RESEARCH ACQ ACT!GS23F8079H !C!N! !Y!W81XWH05F0664! !20050909!20060316!064681021!008255408!016435559!N!NORTHROP GRUMMAN INFORMATION T!8110 GATEHOUSE RD !FALLS CHURCH !VA!22042!27200!610!51!FALLS C… Key points: 1. Contract awarded for administrative management and general management consulting services. 2. Significant value suggests a complex or long-term requirement for the Army. 3. Full and open competition indicates a broad market search, potentially leading to better pricing. 4. Contract duration of over 3 years suggests a sustained need for these services. 5. The contractor, Northrop Grumman, is a large, established defense contractor. 6. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs.
Value Assessment
Rating: good
The contract value of $26.7 million over approximately 3 years for administrative management consulting services appears reasonable given the contractor's scale and the nature of the services. Benchmarking against similar large-scale consulting contracts for government agencies would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests an effort to control costs. The specific deliverables and performance metrics would be crucial for a definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to present their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was sought.
Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a wider range of offers, which can drive down prices and improve the quality of services received.
Public Impact
The Department of the Army is the primary beneficiary, receiving administrative and management consulting services. Services likely support strategic planning, operational efficiency, or program management within the Army. The geographic impact is centered around the Army's operational and administrative hubs, likely within Virginia. Workforce implications may involve support staff or specialized consultants contributing to Army operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if initial requirements are not clearly defined.
- Reliance on a single large contractor could limit future flexibility.
- Ensuring performance metrics are met to justify the contract value.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Fixed-price contract type provides cost certainty.
- Contractor is a well-established entity with significant experience.
- Contract duration indicates a stable, ongoing need for the services.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting various agencies in optimizing operations and strategic initiatives. The market size for such services is substantial, with numerous large and small businesses competing for government contracts. This specific contract represents a notable investment by the Department of the Army in enhancing its management capabilities.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no explicit indication of small business set-asides for this specific award. However, large prime contractors are often required to meet subcontracting goals with small businesses. Further analysis would be needed to determine if subcontracting opportunities were made available to the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Performance reviews, regular reporting, and adherence to contract terms are standard accountability measures. Transparency is facilitated through contract databases like FPDS, though detailed performance data may be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Management and Consulting Services
- Department of Defense Administrative Support
- Army Research and Acquisition Support
- Professional Services Contracts
Risk Flags
- Contract Duration
- Contract Value
- Contractor Size
Tags
department-of-defense, department-of-the-army, administrative-management-consulting, general-management-consulting, full-and-open-competition, firm-fixed-price, northrop-grumman, virginia, professional-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TAS::21 2020::TAS 200512!503732!2100!W81XWH!US ARMY MEDICAL RESEARCH ACQ ACT!GS23F8079H !C!N! !Y!W81XWH05F0664! !20050909!20060316!064681021!008255408!016435559!N!NORTHROP GRUMMAN INFORMATION T!8110 GATEHOUSE RD !FALLS CHURCH !VA!22042!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000004018148!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541690!E
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 $26.7 million.
What is the period of performance?
Start: 2005-09-09. End: 2009-01-15.
What specific administrative and management consulting services were provided under this contract?
The contract specifies 'Administrative Management and General Management Consulting Services' (NAICS code 541611). While the exact deliverables are not detailed in the provided data, these services typically encompass areas such as organizational structure analysis, strategic planning support, process improvement initiatives, program management assistance, and general administrative operations optimization. The significant value and duration suggest these services were critical to a substantial Army function, potentially related to research, acquisition, or operational support, requiring expert advice to enhance efficiency and effectiveness.
How does the $26.7 million value compare to similar contracts for administrative management consulting within the DoD?
The $26.7 million value for a contract spanning over three years (from 2005 to 2009) for administrative management and general management consulting services is substantial, reflecting a significant requirement. To benchmark effectively, one would compare this to other large-scale consulting contracts awarded by the Department of Defense or its branches for similar services. Factors like the specific agency, the complexity of the problem addressed, the duration, and the contractor's expertise influence pricing. Without direct comparable contract data, it's difficult to definitively state if this represents superior or inferior value, but it indicates a high-priority need.
What is Northrop Grumman's track record with similar government contracts?
Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in providing a wide array of services and products to the U.S. government, including the Department of Defense. They have a long history of managing large, complex contracts across various domains, including IT, aerospace, and defense systems. Their track record typically involves significant program management capabilities and the ability to deliver on large-scale requirements. Performance on specific contracts can vary, but their status as a prime contractor on a $26.7 million award suggests a demonstrated capacity to meet government needs in areas like administrative and management consulting.
What are the potential risks associated with a contract of this size and duration?
Risks associated with a contract of this magnitude and duration include potential cost overruns if not managed tightly, scope creep where requirements expand beyond the original agreement, and contractor performance issues. There's also the risk of vendor lock-in, making it difficult to switch providers if dissatisfaction arises. For the government, ensuring clear performance metrics and robust oversight is crucial to mitigate these risks. The fixed-price nature helps control cost risk, but performance risk remains a key area for monitoring.
How has federal spending on administrative and management consulting services evolved since this contract was awarded?
Federal spending on administrative and management consulting services has generally seen fluctuations but has remained a significant category of government expenditure. Post-2005, there has been a continued emphasis on efficiency, modernization, and strategic planning within government agencies, often necessitating external consulting expertise. Factors like budget constraints, evolving technological landscapes, and national security priorities influence spending levels. While this specific contract concluded in 2009, the demand for such services persists, with agencies continually seeking ways to improve operations and achieve mission objectives through expert consultation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 13825 SUNRISE VALLEY DR, 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: $272,369
Exercised Options: $272,369
Current Obligation: $26,696,005
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS23F8079H
IDV Type: FSS
Timeline
Start Date: 2005-09-09
Current End Date: 2009-01-15
Potential End Date: 2009-01-15 00:00:00
Last Modified: 2021-12-09
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