DoD's $276M Cyber Intelligence Contract Awarded to Northrop Grumman for Technical Analysis
Contract Overview
Contract Amount: $276,265,786 ($276.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2009-06-02
End Date: 2014-03-28
Contract Duration: 1,760 days
Daily Burn Rate: $157.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: PERFORMING TECHNICAL ANALYSIS OF COMPUTER NETWORK INTRUSION EVENTS AND MALICIOUS ACTIVITY IN SUPPORT OF CYBER INTELLIGENCE EFFORTS.
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $276.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: PERFORMING TECHNICAL ANALYSIS OF COMPUTER NETWORK INTRUSION EVENTS AND MALICIOUS ACTIVITY IN SUPPORT OF CYBER INTELLIGENCE EFFORTS. Key points: 1. The contract focuses on critical cyber intelligence, analyzing network intrusions and malicious activity. 2. Northrop Grumman, a major defense contractor, secured this significant award. 3. The spending period spans nearly five years, indicating a long-term need for these services. 4. The contract falls under Custom Computer Programming Services, a key IT sector.
Value Assessment
Rating: good
The contract's value of $276.3 million over five years suggests a substantial investment in cyber defense capabilities. Benchmarking against similar large-scale cyber intelligence contracts is difficult due to the specialized nature of the services, but the duration and scope indicate a fair market price for the expertise required.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method likely ensured a competitive bidding process, driving a more favorable price discovery for the government. The use of a Delivery Order under a larger contract framework suggests a structured approach to acquiring these specialized services.
Taxpayer Impact: The competitive award process is designed to maximize taxpayer value by ensuring the government receives the best possible price for essential cyber intelligence services.
Public Impact
Enhances national security by strengthening cyber defense capabilities. Supports the Department of the Army's mission in combating cyber threats. Provides critical intelligence to protect against sophisticated cyberattacks. Contributes to the overall technological advancement in cybersecurity. Ensures the integrity and security of sensitive government networks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in complex technical analysis.
- Reliance on a single large contractor for critical cyber intelligence.
- Evolving cyber threat landscape may require contract modifications.
Positive Signals
- Awarded through full and open competition.
- Long-term contract indicates sustained government need.
- Focus on critical national security functions.
- Experienced contractor with a strong track record.
Sector Analysis
This contract falls within the IT sector, specifically Custom Computer Programming Services. Spending in this area is substantial as government agencies increasingly rely on advanced technological solutions for defense and intelligence. Benchmarks for similar large-scale cyber intelligence contracts are often proprietary or highly specific.
Small Business Impact
The data indicates this contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no direct indication of small business subcontracting in the provided data, suggesting that small businesses may not have been significantly involved in this specific award.
Oversight & Accountability
The contract was awarded as a Delivery Order, implying it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which typically has established oversight mechanisms. The Department of Defense generally maintains robust oversight for its intelligence and cyber-related procurements.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration is substantial, requiring ongoing monitoring.
- Complexity of cyber intelligence may lead to scope creep.
- Dependence on a single large contractor for critical functions.
- Potential for evolving threats to outpace contract capabilities.
- Lack of explicit small business participation noted.
Tags
custom-computer-programming-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $276.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. PERFORMING TECHNICAL ANALYSIS OF COMPUTER NETWORK INTRUSION EVENTS AND MALICIOUS ACTIVITY IN SUPPORT OF CYBER INTELLIGENCE EFFORTS.
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 $276.3 million.
What is the period of performance?
Start: 2009-06-02. End: 2014-03-28.
What specific metrics are used to evaluate the effectiveness of the technical analysis provided under this contract?
The effectiveness of the technical analysis is likely evaluated through key performance indicators (KPIs) related to the accuracy and timeliness of threat identification, the quality of actionable intelligence produced, and the successful mitigation of identified cyber intrusions. Regular reporting and review sessions between the Department of the Army and Northrop Grumman would ensure adherence to contract requirements and performance standards.
How does the government ensure that the cost-plus-fixed-fee structure remains cost-effective given the evolving nature of cyber threats?
The government likely employs stringent oversight and regular performance reviews to manage the cost-plus-fixed-fee structure. This includes detailed auditing of costs, ensuring that all expenses are reasonable and allocable to the contract's objectives. The fixed-fee component provides a baseline incentive for the contractor to perform efficiently, while the cost-plus aspect allows for flexibility in addressing unforeseen technical challenges inherent in cyber intelligence.
What is the long-term strategy for ensuring continued access to cutting-edge cyber intelligence capabilities beyond this contract's duration?
The government's long-term strategy likely involves continuous market research, fostering innovation through various acquisition vehicles, and potentially developing in-house capabilities. This contract's performance data will inform future procurement strategies, potentially leading to follow-on contracts, new solicitations for advanced services, or partnerships with emerging technology providers to maintain a leading edge in cyber defense.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911W408R0015
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 4807 STONECROFT BLVD, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $288,196,591
Exercised Options: $288,196,591
Current Obligation: $276,265,786
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W911W409D0002
IDV Type: IDC
Timeline
Start Date: 2009-06-02
Current End Date: 2014-03-28
Potential End Date: 2014-03-28 00:00:00
Last Modified: 2025-12-31
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