DoD's $28.7M contract for administrative management consulting services awarded to Northrop Grumman

Contract Overview

Contract Amount: $28,710,048 ($28.7M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2009-02-24

End Date: 2014-12-31

Contract Duration: 2,136 days

Daily Burn Rate: $13.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LABOR FOR AIMP TAS::21 2020::TAS

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $28.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: LABOR FOR AIMP TAS::21 2020::TAS Key points: 1. Contract awarded for administrative management and general management consulting services. 2. The contract was a definitive contract with a cost-plus-fixed-fee payment structure. 3. The contract duration was 2136 days, spanning from February 2009 to December 2014. 4. The contract was not competed, raising questions about potential price discovery. 5. Northrop Grumman Systems Corporation was the sole contractor for this award. 6. The contract was awarded by the Department of Defense through the Defense Contract Management Agency. 7. The North American Industry Classification System (NAICS) code for this contract is 541611.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed service descriptions and performance metrics. As a sole-source award, there was no competitive pressure to ensure optimal pricing. The cost-plus-fixed-fee structure, while common for complex services, can incentivize cost overruns if not rigorously managed. Without comparative data on similar administrative management consulting contracts, it's difficult to definitively assess if the $28.7 million expenditure represented good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach bypasses the standard competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The lack of competition suggests that either only one vendor was deemed capable of performing the required services, or there were specific circumstances that precluded a competitive solicitation.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no market pressure to drive down prices. It also limits opportunities for other businesses to compete for government contracts.

Public Impact

The primary beneficiaries of this contract are the Department of Defense and its various components, receiving administrative management and general management consulting services. The services delivered likely aimed to improve operational efficiency, strategic planning, and management practices within the DoD. The geographic impact is likely centered around the operational areas of the Defense Contract Management Agency and potentially other DoD facilities. The workforce implications would involve the personnel at Northrop Grumman Systems Corporation providing these consulting services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to suboptimal pricing.
Cost-plus-fixed-fee contracts require robust oversight to prevent cost escalation.
Sole-source awards limit opportunities for small businesses and market innovation.

Positive Signals

Awarded to a large, established defense contractor with significant experience.
Contract duration suggests a long-term need for these services.
Services provided are critical for administrative and management functions within the DoD.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) is a broad sector encompassing firms that provide expertise in organizational efficiency, strategic planning, and operational improvements. The federal government is a significant consumer of these services, particularly within large departments like Defense, to manage complex operations and large budgets. The total addressable market for management consulting services is substantial, with government contracts forming a notable segment. This specific contract fits within the broader category of professional services procured by the DoD.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned in the provided data. As a sole-source award to a large corporation, it did not directly create opportunities for small businesses through a competitive process. The absence of explicit small business subcontracting goals means the direct impact on the small business ecosystem from this particular contract is likely minimal.

Oversight & Accountability

Oversight for this contract would have been managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance with contract terms. The cost-plus-fixed-fee structure necessitates close monitoring of costs and adherence to the fixed fee. Transparency is limited due to the sole-source nature and lack of public performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Contract Management Agency Operations
Department of Defense Management Consulting Services
Administrative and Support Services Contracts
Professional Services Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Cost-plus-fixed-fee contract requires diligent oversight.
Limited public information on specific services and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. LABOR FOR AIMP TAS::21 2020::TAS

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 $28.7 million.

What is the period of performance?

Start: 2009-02-24. End: 2014-12-31.

What specific administrative and management consulting services did Northrop Grumman provide under this contract?

The provided data indicates the contract was for 'Administrative Management and General Management Consulting Services' under NAICS code 541611. However, the specific deliverables, scope of work, and detailed services rendered are not detailed in the summary. Typically, such services can include organizational analysis, process improvement, strategic planning support, program management assistance, and policy development. Given the duration and value, it likely involved substantial, ongoing support to various administrative functions within the Department of Defense or its components, potentially focusing on enhancing efficiency, effectiveness, and compliance across different operational areas.

How does the $28.7 million cost compare to similar administrative consulting contracts within the DoD during that period?

Direct comparison of the $28.7 million cost to similar administrative consulting contracts within the DoD during the 2009-2014 period is difficult without access to a comprehensive database of federal contract spending with detailed service descriptions and performance metrics. As this was a sole-source award, it did not undergo competitive bidding, which typically helps establish market-based pricing. Cost-plus-fixed-fee contracts can vary significantly based on the complexity and duration of services. To perform a robust comparison, one would need to identify contracts with similar NAICS codes, contract types (cost-plus-fixed-fee), durations, and service scopes, and then analyze their total awarded amounts and potentially their cost per day or per service hour, adjusting for inflation and specific agency needs.

What were the risks associated with awarding this contract on a sole-source basis?

The primary risk associated with awarding this contract on a sole-source basis is the potential for inflated costs due to the lack of competitive pressure. Without multiple bidders vying for the contract, the government may not have secured the most cost-effective solution. There's also a risk of reduced innovation, as a sole provider may have less incentive to develop novel approaches compared to a competitive environment. Furthermore, sole-source awards can raise concerns about fairness and equal opportunity for other qualified contractors, potentially limiting the pool of available expertise for future government needs if certain companies become entrenched.

What was the rationale provided for awarding this contract as sole-source?

The provided data explicitly states the contract type as 'NOT COMPETED,' which is synonymous with a sole-source award in this context. However, the specific justification or rationale for why this contract was not competed is not included in the summary data. Common reasons for sole-source awards include situations where only one responsible source is available, an urgent and compelling need exists that precludes competition, or specific national security concerns necessitate a particular contractor. Without the official justification documentation (e.g., a Justification and Approval document), the precise reason for bypassing the competitive process remains unknown.

How effective was Northrop Grumman in delivering the administrative management consulting services as per the contract terms?

The provided data does not contain information regarding the performance evaluation or effectiveness of Northrop Grumman Systems Corporation under this contract. Assessing effectiveness would typically require access to contract performance reports, customer satisfaction surveys, or specific metrics related to the services delivered. While the contract was awarded and completed (ending in December 2014), this does not inherently guarantee effectiveness. Without performance data, it is impossible to determine if the services met or exceeded expectations, achieved their intended objectives, or provided the anticipated value to the Department of Defense.

What is the historical spending trend for administrative management and general management consulting services by the Department of Defense?

The provided data focuses solely on one contract and does not offer insights into the broader historical spending trends for administrative management and general management consulting services by the Department of Defense. To analyze such trends, one would need to examine aggregated federal procurement data over multiple fiscal years, filtering for relevant NAICS codes (like 541611) and agencies (like DoD). This would allow for the identification of patterns in spending levels, fluctuations, major contract awards, and the types of services most frequently procured within this category. Such an analysis would reveal whether spending has increased, decreased, or remained stable over time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 2340 DULLES CORNER PARK, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $29,752,365

Exercised Options: $29,752,365

Current Obligation: $28,710,048

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline