DoD awards $62.3M task order to Northrop Grumman for base command systems support

Contract Overview

Contract Amount: $62,354,894 ($62.4M)

Contractor: Northrop Grumman Information Technology Inc

Awarding Agency: Department of Defense

Start Date: 2008-05-01

End Date: 2011-04-28

Contract Duration: 1,092 days

Daily Burn Rate: $57.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: NEW TASK ORDER FOR BASE COMMAND SYSTEMS SUPPORT.

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $62.4 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: NEW TASK ORDER FOR BASE COMMAND SYSTEMS SUPPORT. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Task order duration of 1092 days indicates a long-term need for these services. 3. The contract type is Time and Materials, which can pose cost control challenges. 4. Northrop Grumman Information Technology Inc. is the incumbent contractor. 5. The award falls under Engineering Services (NAICS 541330). 6. The task order is a modification to an existing contract, indicating continuity of service.

Value Assessment

Rating: fair

The total award amount is $62.3 million over approximately three years. Without specific benchmarks for 'base command systems support,' it is difficult to definitively assess value for money. However, the Time and Materials contract type, while flexible, carries inherent risks of cost overruns if not closely managed. Comparing this to similar system support contracts within the Department of Defense would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition. This implies that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but the competitive nature of the award is a positive indicator for price discovery and potentially better pricing for the government.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions.

Public Impact

The Department of the Army benefits from continued support for its base command systems. This contract ensures the operational readiness and efficiency of critical military infrastructure. The services provided are essential for maintaining command and control capabilities. The geographic impact is likely concentrated within the Army's operational bases, primarily in Virginia where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
Lack of specific performance metrics makes it difficult to assess efficiency and effectiveness.
The duration of the task order (nearly 3 years) requires ongoing monitoring to ensure continued value.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Northrop Grumman has a significant track record in defense contracting.
The task order supports critical base command systems, essential for military operations.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT and command systems for military bases. The market for defense IT and systems integration is substantial, dominated by large prime contractors like Northrop Grumman. This award represents a portion of the broader government spending on defense modernization and operational support, where specialized engineering services are crucial for maintaining complex technological infrastructures.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and large prime contractors are likely performing the majority of the work. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award notice.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The 'VA' (Virginia) designation might indicate a specific regional oversight or administrative point. Transparency is generally provided through contract award databases like FPDS. Accountability measures would be tied to the performance work statement and contractual terms, with potential for Inspector General involvement if issues arise.

Related Government Programs

Defense IT Modernization Programs
Military Base Infrastructure Support
Command and Control Systems Procurement
Engineering Services for Federal Agencies
Northrop Grumman Defense Contracts

Risk Flags

Time and Materials contract type requires close monitoring to control costs.
Lack of specific performance metrics in summary data hinders effectiveness assessment.
Potential for cost overruns due to T&M structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.4 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. NEW TASK ORDER FOR BASE COMMAND SYSTEMS SUPPORT.

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 Army).

What is the total obligated amount?

The obligated amount is $62.4 million.

What is the period of performance?

Start: 2008-05-01. End: 2011-04-28.

What is the specific nature of the 'base command systems' being supported under this task order?

The task order description 'NEW TASK ORDER FOR BASE COMMAND SYSTEMS SUPPORT' is broad. Base command systems typically encompass a range of technologies and services critical for the operation and management of a military installation. This can include communication networks, IT infrastructure, security systems, logistical management software, and potentially command and control (C2) platforms that enable commanders to direct forces and manage operations. Without further details from the specific Performance Work Statement (PWS), the exact components and functionalities are not fully delineated. However, given the contractor (Northrop Grumman) and the agency (Department of the Army), it is reasonable to infer these systems are vital for maintaining operational readiness, administrative functions, and security at Army bases.

How does the Time and Materials (T&M) contract type compare to other contract types for similar services in terms of cost risk?

Time and Materials (T&M) contracts are characterized by the government paying the contractor for direct labor hours at specified fixed hourly rates and for the actual cost of materials. This contract type offers flexibility, especially when the scope of work is not clearly defined or is expected to change. However, it carries a higher cost risk for the government compared to fixed-price contracts because the total cost is not predetermined. If the contractor's labor hours or material costs increase, the government pays more. For services like base command systems support, where requirements might evolve, T&M can be suitable, but it necessitates stringent oversight, detailed tracking of labor hours, and robust negotiation of hourly rates to mitigate cost overruns and ensure value for money.

What is Northrop Grumman's track record with similar Department of the Army IT and systems support contracts?

Northrop Grumman Information Technology Inc. (now part of Northrop Grumman Corporation) has an extensive and long-standing track record of providing IT, systems integration, and support services to the Department of Defense, including the Department of the Army. They have historically held numerous large, complex contracts involving command and control systems, network infrastructure, cybersecurity, and enterprise IT solutions for various Army commands and programs. Their experience includes managing large-scale projects, supporting mission-critical systems, and operating under various contract types. This extensive background suggests a high level of familiarity with Army requirements, processes, and operational environments, which is often a key factor in winning and successfully executing such task orders.

What are the potential implications of this $62.3 million award on future spending for base command systems?

This $62.3 million task order represents a significant investment in maintaining and supporting critical base command systems for the Department of the Army. Its award through full and open competition suggests that the government sought competitive proposals to ensure value. The duration of the task order (nearly three years) indicates a sustained need for these services. Future spending in this area will likely continue, driven by the ongoing need to modernize and maintain aging infrastructure, adapt to evolving technological threats, and ensure seamless command and control capabilities across Army installations. The success and cost-effectiveness of this particular task order could influence future procurement strategies and contractor selections for similar requirements.

Are there any specific performance metrics or KPIs associated with this task order that indicate its effectiveness?

The provided data summary does not include specific performance metrics or Key Performance Indicators (KPIs) for this task order. Typically, such details are outlined in the Performance Work Statement (PWS) which is part of the full contract documentation. For a contract supporting critical base command systems, relevant KPIs might include system uptime percentages, response times for technical support, successful implementation of system updates or patches, cybersecurity compliance rates, and user satisfaction levels. Without access to the PWS, it is impossible to definitively assess the effectiveness of the services delivered against predefined standards. The Time and Materials nature of the contract implies that performance monitoring and management by the government are crucial to ensure the contractor is delivering value.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 7575 COLSHIRE DRIVE, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $62,354,894

Exercised Options: $62,354,894

Current Obligation: $62,354,894

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAB0702DP002

IDV Type: IDC

Timeline