DoD Awards $16.5M Engineering Services Contract to Northrop Grumman, Sole-Source

Contract Overview

Contract Amount: $16,532,478 ($16.5M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2007-06-08

End Date: 2017-09-30

Contract Duration: 3,767 days

Daily Burn Rate: $4.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: ENGLBR '08

Place of Performance

Location: SAINT AUGUSTINE, SAINT JOHNS County, FLORIDA, 32095

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $16.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ENGLBR '08 Key points: 1. Significant contract value of $16.5 million awarded. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration of 3767 days (over 10 years) suggests a critical, ongoing need. 4. Engineering services sector is vital for defense operations.

Value Assessment

Rating: questionable

The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed tightly. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition may result in higher spending than if the contract had been awarded through a competitive process.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract suggests a sustained reliance on Northrop Grumman for these engineering services. Oversight is crucial to ensure the necessity and cost-effectiveness of the services provided over the contract's lifespan.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Time and Materials pricing
Long contract duration

Positive Signals

Awarded to a known defense contractor
Supports critical defense needs

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for the Department of Defense's operational capabilities. Spending in this sector can vary widely based on specific project needs and technological advancements.

Small Business Impact

The data does not indicate any involvement of small businesses in this contract, suggesting it was awarded directly to a large corporation.

Oversight & Accountability

Given the sole-source nature and long duration, robust oversight by the Defense Contract Management Agency is essential to monitor performance, costs, and ensure the continued necessity of the services.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency on pricing
Long-term commitment without clear performance benchmarks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ENGLBR '08

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 $16.5 million.

What is the period of performance?

Start: 2007-06-08. End: 2017-09-30.

What specific engineering services are being provided under this contract, and why was a sole-source award deemed necessary?

The specific engineering services are categorized under NAICS code 541330 (Engineering Services). A sole-source award typically occurs when only one responsible source can provide the required services, often due to unique capabilities, proprietary technology, or urgent needs. Further justification from the agency would be required to understand the rationale.

How does the Time and Materials pricing structure impact the overall cost and risk for the government?

Time and Materials (T&M) contracts can pose a higher cost risk to the government as they are not capped and can escalate if not closely monitored. The government pays for the actual labor hours and material costs incurred by the contractor, plus a markup. Effective oversight and clear task definitions are critical to control spending under T&M.

What mechanisms are in place to ensure the effectiveness and value for money of these engineering services over the 10-year period?

Mechanisms for ensuring effectiveness and value include regular performance reviews, milestone tracking, and potentially contract modifications or termination clauses if performance is unsatisfactory. The long duration necessitates ongoing dialogue and potential adjustments to ensure the services remain relevant and cost-effective as defense needs evolve.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 5000 US HIGHWAY 1 N, SAINT AUGUSTINE, FL, 32095

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,505,828

Exercised Options: $16,532,478

Current Obligation: $16,532,478

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018907DZ031

IDV Type: IDC

Timeline