DoD's AFEMS Follow-On Contract Awarded to Northrop Grumman for $17.7M
Contract Overview
Contract Amount: $17,705,597 ($17.7M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Defense
Start Date: 2008-03-31
End Date: 2010-09-08
Contract Duration: 891 days
Daily Burn Rate: $19.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: IT
Official Description: AFEMS FOLLOW-ON
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45430
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $17.7 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: AFEMS FOLLOW-ON Key points: 1. Contract awarded to a single, large vendor, Northrop Grumman. 2. Spending is within the Wired Telecommunications Carriers sector. 3. Potential for cost overruns or inefficiencies due to labor hour pricing. 4. Limited visibility into specific performance metrics and value.
Value Assessment
Rating: fair
The contract's value of $17.7M for a 2-year period seems moderate for telecommunications services. However, the labor hour pricing model introduces uncertainty regarding the final cost and efficiency compared to 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 specific details of the price discovery mechanism and how Northrop Grumman's bid was evaluated are not provided.
Taxpayer Impact: The use of labor hours for pricing could lead to higher taxpayer costs if not managed effectively, as it incentivizes more hours rather than efficient completion.
Public Impact
Impacts telecommunications infrastructure and services for the Air Force. Potential for disruption if service delivery is not maintained. Supports jobs within the IT and telecommunications sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Labor hour pricing can lead to cost overruns.
- Lack of detailed performance metrics.
- Limited information on competition effectiveness.
Positive Signals
- Awarded under full and open competition.
- Contract duration aligns with project needs.
Sector Analysis
This contract falls under the Wired Telecommunications Carriers sector, which is crucial for government operations. Spending benchmarks for similar contracts are difficult to ascertain without more specific service details.
Small Business Impact
The contract was awarded to Northrop Grumman, a large business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
Oversight is managed by the Department of the Air Force. The effectiveness of this oversight in controlling costs and ensuring performance is not detailed.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to labor hour pricing.
- Lack of specific performance metrics.
- Limited insight into the effectiveness of price discovery.
- No indication of small business participation.
Tags
wired-telecommunications-carriers, department-of-defense, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.7 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. AFEMS FOLLOW-ON
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 $17.7 million.
What is the period of performance?
Start: 2008-03-31. End: 2010-09-08.
What specific telecommunications services are covered under this contract, and how do they align with Air Force operational needs?
The contract, identified by PSC 517110 (Wired Telecommunications Carriers), likely covers a range of services including network infrastructure, voice and data transmission, and potentially related maintenance and support for the Air Force. Without further details, it's difficult to precisely map these services to specific operational requirements, but they are fundamental to modern military communications and data exchange.
How was the labor hour pricing structure evaluated to ensure fair and reasonable costs, given the potential for cost escalation?
The evaluation of labor hour pricing typically involves establishing baseline labor rates, estimating required hours, and setting ceilings or fixed price conversions where possible. For this contract, the Department of the Air Force would have assessed Northrop Grumman's proposed rates against market data and historical costs. However, the inherent risk of cost escalation remains, necessitating robust monitoring and reporting mechanisms to control expenditures.
What performance metrics were established to measure the effectiveness of the telecommunications services provided under this contract?
Performance metrics for telecommunications contracts often include service availability, uptime, latency, data transfer speeds, and response times for issue resolution. While the contract was awarded under full and open competition, the specific metrics and their targets are not detailed in the provided data. Effective oversight would require clear, measurable performance standards to ensure the Air Force receives the expected level of service.
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: 2
Pricing Type: LABOR HOURS (Z)
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: $320,413,458
Exercised Options: $188,809,278
Current Obligation: $17,705,597
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877104D0004
IDV Type: IDC
Timeline
Start Date: 2008-03-31
Current End Date: 2010-09-08
Potential End Date: 2010-09-08 00:00:00
Last Modified: 2013-02-14
More Contracts from Northrop Grumman Information Technology Inc
- Federal Contract — $442.4M (Department of Defense)
- Services--Dko Concept of Operations — $441.3M (Department of Defense)
- 200510!500520!2100!w912su!aca, Nrcc - Mission Division !W911S004C0006 !A!N! !Y! !p00006!20050707!20050930!064679264!064679264!016435559!n!northrop Grumman Information T!2411 Dulles Corner Park !herndon !va!20171!23950!103!20!fort Leavenworth !leavenworth !kansas !+000019492204!n!n!000000000000!r499!other Professional Services !S1 !services !000 !* !541519!E! !3! ! !B! ! !20200930!B! ! !A! !a!u!r!2!002!b! !C!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !W55C6Q!0001! ! — $431.7M (Department of Defense)
- Gccs-J System Engineering Igf::ot::igf — $197.7M (Department of Defense)
- Migrated Data Value Unknown — $103.0M (Department of Defense)
View all Northrop Grumman Information Technology Inc federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)