DoD's $110M PPB BOS Support Contract Awarded to Northrop Grumman Under Full and Open Competition
Contract Overview
Contract Amount: $110,139,824 ($110.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2016-07-29
End Date: 2021-09-27
Contract Duration: 1,886 days
Daily Burn Rate: $58.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF PLANNING, PROGRAMMING, AND BUDGETING BUSINESS OPERATING SYSTEM (PPB BOS) SUPPORT SERVICES CONTRACT.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310
Plain-Language Summary
Department of Defense obligated $110.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::OT::IGF PLANNING, PROGRAMMING, AND BUDGETING BUSINESS OPERATING SYSTEM (PPB BOS) SUPPORT SERVICES CONTRACT. Key points: 1. The contract, valued at over $110 million, was awarded to Northrop Grumman Systems Corporation. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract duration is 1886 days, spanning from July 2016 to September 2021. 4. The primary sector appears to be Engineering Services, with a PSC code of 541330.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee. This structure can incentivize cost control while ensuring contractor effort.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting multiple bidders participated. This process typically leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive nature of the award is a positive sign for taxpayer value, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.
Public Impact
Ensures critical planning, programming, and budgeting functions for the Department of the Army. Supports the operational efficiency of defense resource allocation. The duration of the contract suggests a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract type (CPFF) can lead to cost overruns if not closely monitored.
- Long contract duration may not adapt well to rapidly changing technological needs.
Positive Signals
- Full and open competition generally yields better value.
- Clear award date and end date provide predictability.
Sector Analysis
This contract falls under Engineering Services, a broad category that supports complex government operations. Benchmarks for similar large-scale IT and engineering support services contracts vary widely based on scope and duration.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The prime contractor is Northrop Grumman Systems Corporation, a large defense contractor.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract officers and program managers to ensure performance and adherence to terms.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Risk of obsolescence if technology evolves rapidly during the long contract term.
- Lack of small business participation noted.
- Contract type may not be optimal for highly innovative or rapidly changing requirements.
Tags
engineering-services, department-of-defense, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $110.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::OT::IGF PLANNING, PROGRAMMING, AND BUDGETING BUSINESS OPERATING SYSTEM (PPB BOS) SUPPORT SERVICES CONTRACT.
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 $110.1 million.
What is the period of performance?
Start: 2016-07-29. End: 2021-09-27.
What specific PPB BOS functionalities were supported by this contract, and how did they contribute to the Army's overall mission effectiveness?
This contract likely supported the development, maintenance, and enhancement of systems used for the Army's financial planning, resource allocation, and budget execution. Effective PPB BOS is crucial for ensuring funds are directed towards strategic priorities, optimizing operational readiness, and achieving mission objectives efficiently. The specific functionalities would detail the software and services provided to manage these complex financial processes.
Given the CPFF contract type, what mechanisms were in place to control costs and prevent potential overruns during the contract period?
Cost Plus Fixed Fee contracts require robust oversight to manage costs. The Army would have likely implemented detailed cost tracking, regular audits, and performance reviews. Fixed fee components incentivize efficiency, but the 'cost plus' element necessitates vigilant monitoring of allowable costs and contractor performance against established budgets and milestones to mitigate overspending.
How did the competitive bidding process for this contract ensure that the government received the best value for the engineering services provided?
A full and open competition allows multiple qualified vendors to submit proposals, fostering a competitive environment. The Army would have evaluated these proposals based on technical merit, past performance, and price. This process aims to identify the offer that provides the optimal balance of cost and performance, ensuring taxpayer funds are used effectively for critical engineering support services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W91CRB15R0021
Offers Received: 1
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $118,676,957
Exercised Options: $110,590,683
Current Obligation: $110,139,824
Actual Outlays: $726,903
Subaward Activity
Number of Subawards: 429
Total Subaward Amount: $186,847,721
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU125
IDV Type: IDC
Timeline
Start Date: 2016-07-29
Current End Date: 2021-09-27
Potential End Date: 2022-01-27 00:00:00
Last Modified: 2023-03-30
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