DoD's $103M Wired Telecommunications Contract Awarded to Northrop Grumman in 2007
Contract Overview
Contract Amount: $103,047,064 ($103.0M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Defense
Start Date: 2007-06-25
End Date: 2010-09-04
Contract Duration: 1,167 days
Daily Burn Rate: $88.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: MIGRATED DATA VALUE UNKNOWN
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $103.0 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: MIGRATED DATA VALUE UNKNOWN Key points: 1. Significant contract value of over $103 million. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Contract duration of nearly 4 years indicates a substantial, long-term service requirement. 4. The specific NAICS code (517110) points to the telecommunications services sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. Without specific performance data or comparison to similar contracts, assessing the value is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing. However, the CPFF structure might limit the direct price discovery benefits of competition.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, but the CPFF contract type warrants scrutiny to ensure cost efficiency.
Public Impact
Ensures critical wired telecommunications infrastructure for the Department of the Air Force. Supports military operations and communication networks. Potential for technology upgrades and service enhancements within the telecommunications sector.
Waste & Efficiency Indicators
Waste Risk Score: 88 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Unknown data on migrated data value.
Positive Signals
- Awarded under full and open competition.
- Long contract duration suggests sustained need and potential for stable service.
- Significant contract value indicates a critical service for the agency.
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, which includes companies that provide telecommunications services to the public and businesses over a network of wired infrastructure. Spending in this sector by the DoD is crucial for maintaining robust communication capabilities.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded in 2007 and completed in 2010. Oversight would have focused on cost control and service delivery during its term. Post-award reviews and audits would be key accountability mechanisms.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to higher costs if not managed diligently.
- Unknown migrated data value.
- Lack of detailed performance metrics in the provided data.
- Potential for cost overruns inherent in CPFF contracts.
Tags
wired-telecommunications-carriers, department-of-defense, va, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $103.0 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. MIGRATED DATA VALUE UNKNOWN
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 $103.0 million.
What is the period of performance?
Start: 2007-06-25. End: 2010-09-04.
What was the final cost compared to the initial estimated cost, and how did it align with the fixed fee?
The contract was a Cost Plus Fixed Fee (CPFF) type, meaning the contractor was reimbursed for allowable costs plus a fixed fee representing profit. Without the final cost data and the initial estimated cost, it's impossible to assess if the final expenditure was reasonable or if the fixed fee was appropriate relative to the work performed and the contractor's risk.
Were there any performance issues or contract modifications that impacted the overall cost or delivery timeline?
The contract ran for its full duration of 1167 days (over 3 years). The absence of readily available data on disputes or significant modifications suggests a relatively stable execution. However, a deeper dive into contract modification history and performance reports would be necessary to confirm the absence of unforeseen issues impacting cost or delivery.
How did the pricing for these telecommunications services compare to market rates at the time of award?
Given the 'full and open competition' award, it implies that multiple bids were received and evaluated. However, the CPFF structure means the final price is cost-dependent. A thorough benchmark analysis against contemporary market rates for similar telecommunications services would be needed to definitively assess if the government secured competitive pricing.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 7575 COLSHIRE DRIVE, MCLEAN, VA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $242,129,279
Exercised Options: $202,883,091
Current Obligation: $103,047,064
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877104D0004
IDV Type: IDC
Timeline
Start Date: 2007-06-25
Current End Date: 2010-09-04
Potential End Date: 2010-09-04 00:00:00
Last Modified: 2013-02-14
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