Army Awards $100.4M Engineering Services Contract to Northrop Grumman for BOS Support
Contract Overview
Contract Amount: $100,430,621 ($100.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2021-09-28
End Date: 2026-03-27
Contract Duration: 1,641 days
Daily Burn Rate: $61.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: HQDA DCS G-8 PPB BOS SUPPORT SERVICES CONTRACT AWARD.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310
Plain-Language Summary
Department of Defense obligated $100.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: HQDA DCS G-8 PPB BOS SUPPORT SERVICES CONTRACT AWARD. Key points: 1. Significant contract value of $100.4 million awarded to a major defense contractor. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. Contract duration extends over 5 years, indicating long-term support needs. 4. The contract falls under Engineering Services, a critical sector for defense operations.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a wide range of potential bidders to participate.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it aims to secure the best value through market forces.
Public Impact
Supports critical Army operations through engineering services. Long-term contract ensures continuity of essential support functions. Award to a large, established contractor may indicate a need for specialized expertise.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- CPFF contract type requires close monitoring to prevent cost creep.
- Long contract duration could be subject to changing requirements or economic shifts.
Positive Signals
- Full and open competition utilized.
- Awarded to a reputable contractor with significant experience.
Sector Analysis
This contract for engineering services supports the Department of the Army's Base Operations Support (BOS). Spending in this category is crucial for maintaining military readiness and infrastructure, with benchmarks varying widely based on the specific services and locations required.
Small Business Impact
The data indicates the prime contractor is Northrop Grumman Systems Corporation, a large business. There is no explicit information provided regarding small business subcontracting goals or participation in this award.
Oversight & Accountability
The award is a delivery order under a larger contract, suggesting it may be part of a broader acquisition strategy. Oversight will be critical to ensure performance and cost control throughout the contract's life.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration (over 5 years).
- Lack of specific service details.
- No explicit small business participation mentioned.
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 $100.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. HQDA DCS G-8 PPB BOS SUPPORT SERVICES CONTRACT AWARD.
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 $100.4 million.
What is the period of performance?
Start: 2021-09-28. End: 2026-03-27.
What specific engineering services are included under this contract, and how do they align with current Army modernization priorities?
The provided data does not detail the specific engineering services. Further analysis would require reviewing the contract's Statement of Work (SOW) to understand the scope, deliverables, and how these services contribute to the Army's strategic objectives and modernization efforts. Understanding this alignment is key to assessing the long-term value and necessity of the expenditure.
Given the CPFF structure, what are the established mechanisms for monitoring and controlling costs to mitigate potential overruns?
Cost Plus Fixed Fee contracts necessitate robust oversight. Key mechanisms include detailed cost tracking, regular audits, performance reviews against milestones, and clear communication channels between the contracting officer and the contractor. The government must actively manage the 'cost' portion while ensuring the contractor meets the 'fixed fee' objectives without unnecessary expenditure.
How does the $100.4 million award compare to historical spending on similar BOS support services contracts within the Department of the Army?
Benchmarking this $100.4 million award requires comparing it against similar contracts for Base Operations Support services, considering factors like duration, scope of services, and geographic location. Without access to historical contract data and specific service details, a precise comparison is difficult. However, this value appears substantial, warranting scrutiny to ensure it represents fair market value.
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 › IT AND TELECOM - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W91CRB21R0007
Offers Received: 2
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: $100,776,664
Exercised Options: $100,776,664
Current Obligation: $100,430,621
Actual Outlays: $7,395,364
Subaward Activity
Number of Subawards: 389
Total Subaward Amount: $206,642,255
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: 2021-09-28
Current End Date: 2026-03-27
Potential End Date: 2026-03-27 00:00:00
Last Modified: 2025-09-16
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