DoD's $223M Combat Training Center System Awarded to Northrop Grumman Amidst Concerns
Contract Overview
Contract Amount: $222,739,807 ($222.7M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-11-09
End Date: 2019-09-30
Contract Duration: 2,516 days
Daily Burn Rate: $88.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: COMBAT TRAINING CENTER-INSTRUMENTATION SYSTEM (CTC-IS) FOR NATIONAL TRAINING CENTER (NTC) AND JOINT READINESS TRAINING CENTER (JRTC)
Place of Performance
Location: FORT POLK, VERNON County, LOUISIANA, 71459
Plain-Language Summary
Department of Defense obligated $222.7 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: COMBAT TRAINING CENTER-INSTRUMENTATION SYSTEM (CTC-IS) FOR NATIONAL TRAINING CENTER (NTC) AND JOINT READINESS TRAINING CENTER (JRTC) Key points: 1. The Department of Defense awarded a significant contract valued at over $222 million for combat training systems. 2. Northrop Grumman Technical Services, Inc. secured the contract, highlighting potential concentration in the defense sector. 3. The contract's Cost Plus Fixed Fee structure warrants scrutiny regarding cost control and potential overruns. 4. While the specific sector is 'Other Commercial and Service Industry Machinery Manufacturing,' the application is defense-focused.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed tightly. Benchmarking against similar complex instrumentation systems is difficult without more granular data, but CPFF generally carries higher risk than fixed-price contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the CPFF structure may not have incentivized the most aggressive price discovery from the contractor.
Taxpayer Impact: Taxpayers bear the risk of cost overruns inherent in CPFF contracts, potentially increasing the final expenditure beyond initial estimates.
Public Impact
Ensures readiness for Army personnel through advanced training simulations. Supports critical national defense objectives by providing realistic combat scenarios. The technology deployed could have dual-use applications, benefiting civilian training or simulation industries. Long-term sustainment and upgrade costs for such complex systems are a significant consideration for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of small business participation noted
- Long contract duration (2516 days)
Positive Signals
- Awarded under full and open competition
- Supports critical national training infrastructure
Sector Analysis
This contract falls under 'Other Commercial and Service Industry Machinery Manufacturing' but is specifically for advanced combat training instrumentation. Benchmarking within this niche is challenging, but defense instrumentation systems are typically high-value, complex procurements.
Small Business Impact
The data indicates no reported small business participation in this contract. This suggests a missed opportunity to leverage small business innovation and economic participation within the defense supply chain.
Oversight & Accountability
The contract's duration and CPFF structure necessitate robust oversight from the Department of the Army to ensure cost control and performance. Regular audits and performance reviews are crucial for accountability.
Related Government Programs
- Other Commercial and Service Industry Machinery Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type increases government cost risk.
- Lack of small business participation.
- Potential for cost overruns due to CPFF structure.
- Long contract duration may lead to technology obsolescence.
- Limited insight into specific performance metrics and oversight effectiveness.
Tags
other-commercial-and-service-industry-ma, department-of-defense, la, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $222.7 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. COMBAT TRAINING CENTER-INSTRUMENTATION SYSTEM (CTC-IS) FOR NATIONAL TRAINING CENTER (NTC) AND JOINT READINESS TRAINING CENTER (JRTC)
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN TECHNICAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $222.7 million.
What is the period of performance?
Start: 2012-11-09. End: 2019-09-30.
What specific performance metrics are used to evaluate the effectiveness of the instrumentation system in achieving realistic combat training outcomes?
Effectiveness is likely measured through metrics related to simulation fidelity, system uptime, data collection accuracy, and feedback from training participants and evaluators. The Army would define specific Key Performance Parameters (KPPs) and Key System Attributes (KSAs) tied to the training objectives. Post-exercise debriefings and analysis of simulated combat data would also contribute to assessing effectiveness.
How does the Cost Plus Fixed Fee structure mitigate risks of cost overruns for this complex instrumentation system?
The CPFF structure inherently shifts cost risk towards the government. While the contractor receives a fixed fee, they are reimbursed for allowable costs. Mitigation relies heavily on stringent government oversight, detailed cost tracking, and proactive management of scope changes to prevent uncontrolled cost escalation. The fixed fee itself provides some incentive for efficiency, but less than fixed-price contracts.
What is the long-term strategy for maintaining and upgrading this instrumentation system to remain relevant with evolving combat technologies?
The long-term strategy likely involves phased upgrades and sustainment contracts. The initial contract duration suggests a focus on deployment and initial operations. Future strategies would need to address obsolescence, incorporate new technologies (e.g., AI, cyber warfare simulation), and ensure interoperability with future platforms. This requires continuous investment and planning beyond the initial award period.
Industry Classification
NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing
Product/Service Code: TRAINING AIDS AND DEVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W900KK08R0001
Offers Received: 7
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $258,694,772
Exercised Options: $227,594,808
Current Obligation: $222,739,807
Subaward Activity
Number of Subawards: 3147
Total Subaward Amount: $1,924,872,162
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W900KK09D0342
IDV Type: IDC
Timeline
Start Date: 2012-11-09
Current End Date: 2019-09-30
Potential End Date: 2019-09-30 00:00:00
Last Modified: 2025-04-26
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