DoD's $11.9M REMIS FY08 Sustainment Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $11,900,757 ($11.9M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Defense
Start Date: 2007-11-01
End Date: 2008-10-31
Contract Duration: 365 days
Daily Burn Rate: $32.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: REMIS FY08 SUSTAINMENT
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45430
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $11.9 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: REMIS FY08 SUSTAINMENT Key points: 1. Significant contract value for IT sustainment services. 2. Sole-source award raises questions about competition and potential overpricing. 3. Limited competition could impact taxpayer value. 4. IT services sector is highly competitive, making sole-source awards notable.
Value Assessment
Rating: questionable
The contract value of $11.9M for one year of sustainment is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar IT sustainment contracts in the market.
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 may result in higher costs for the government compared to a fully competed contract.
Taxpayer Impact: The lack of competition for this $11.9M contract may lead to taxpayers paying more than necessary for these IT sustainment services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of the Air Force relies on a single vendor for critical IT sustainment. Potential for reduced innovation and service quality without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Limited vendor options
Positive Signals
- Contract awarded to a known entity
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. The federal government spends billions annually on IT services, and competitive bidding is crucial for ensuring value.
Small Business Impact
The contract was awarded to Northrop Grumman Information Technology Inc., a large business. There is no indication that small businesses were involved in this specific award, nor was it set aside for them.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is fair and reasonable and that future procurements are appropriately competed.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of demonstrated competition
- Potential for price escalation
- Limited oversight on price reasonableness
Tags
other-computer-related-services, department-of-defense, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.9 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. REMIS FY08 SUSTAINMENT
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $11.9 million.
What is the period of performance?
Start: 2007-11-01. End: 2008-10-31.
What is the justification for awarding this contract on a sole-source basis instead of competing it?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without further documentation, it's unclear why this $11.9M sustainment contract for REMIS was not competed, potentially missing out on cost savings and innovation.
How does the $11.9M annual cost compare to similar IT sustainment contracts within the DoD or other federal agencies?
Benchmarking this $11.9M contract against similar IT sustainment services is challenging without competitive data. However, given the size and scope, a competitive process would likely yield a more validated and potentially lower price point, ensuring better value for taxpayer funds.
What are the risks associated with relying on a single vendor for critical IT sustainment services like REMIS?
The primary risks include vendor lock-in, potential price increases upon contract renewal, and a lack of incentive for the vendor to innovate or improve services. If Northrop Grumman were to face performance issues or exit the market, the Air Force could face significant disruption.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 7575 COLSHIRE DRIVE, MC LEAN, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $47,380,523
Exercised Options: $47,380,523
Current Obligation: $11,900,757
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877008D0008
IDV Type: IDC
Timeline
Start Date: 2007-11-01
Current End Date: 2008-10-31
Potential End Date: 2008-10-31 00:00:00
Last Modified: 2009-06-07
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