DoD Awards Northrop Grumman $32.8M for Technical Assistance Services, Competition Raises Value Concerns
Contract Overview
Contract Amount: $32,835,823 ($32.8M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Defense
Start Date: 2005-10-14
End Date: 2010-09-30
Contract Duration: 1,812 days
Daily Burn Rate: $18.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: 200603!000100!5700!FA4600!55CONS/CC !DCA20002D5010 !A!N! !Y!6U01 !01 !20051014!20060930!064677243!016435559!016435559!N!NORTHROP GRUMMAN INFORMATION T!7575 COLSHIRE DRIVE !MC LEAN !VA!22102!35875!153!31!OFFUTT AFB !SARPY !NEBRASKA !+000001384123!N!N!000000000000!R421!TECHNICAL ASSISTANCE !S1 !SERVICES !000 !NOT DISCERNABLE !541512!E! !5!B!M!C!A! !99990909!B!F!Y!N!Z!A!N!R!2!002!F! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113, UNITED STATES OF AMERICA
State: Nebraska Government Spending
Plain-Language Summary
Department of Defense obligated $32.8 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: 200603!000100!5700!FA4600!55CONS/CC !DCA20002D5010 !A!N! !Y!6U01 !01 !20051014!20060930!064677243!016435559!016435559!N!NORTHROP GRUMMAN INFORMATION T!7575 COLSHIRE DRIVE !MC LEAN !VA!22102!35875!153!31!OFFUTT AFB !SARPY !NEBRASKA !+000001384123!N!N!000000000000!R421!TECHNICAL AS… Key points: 1. Contract awarded to Northrop Grumman for technical assistance services. 2. Full and open competition was utilized, but the contract type (Cost Plus Award Fee) may inflate costs. 3. The duration of 1812 days (approx. 5 years) suggests a significant, long-term need. 4. The sector is IT services, specifically Computer Systems Design Services.
Value Assessment
Rating: questionable
The Cost Plus Award Fee (CPAF) contract type allows for cost reimbursement plus an award fee, which can incentivize performance but also lead to higher overall costs compared to fixed-price contracts. Without more data on the award fee structure and performance metrics, it's difficult to definitively assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were considered. However, the CPAF structure might not be the most cost-effective for this type of service, potentially impacting price discovery.
Taxpayer Impact: While competition is present, the CPAF structure warrants scrutiny to ensure taxpayer funds are used efficiently and that the award fee is tied to demonstrable value.
Public Impact
Citizens rely on the Department of Defense for national security, and efficient spending ensures resources are available for critical missions. Technical assistance services are crucial for maintaining complex defense systems and infrastructure. Transparency in contracting, especially with cost-reimbursement elements, builds public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure
- Long contract duration
- Potential for cost overruns
Positive Signals
- Full and open competition
- Award fee tied to performance
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across the government, supporting everything from cybersecurity to data management. Benchmarks for similar services vary widely based on complexity and duration.
Small Business Impact
The data indicates this contract was awarded to a large business (Northrop Grumman). There is no specific information provided regarding set-asides for small businesses or their participation in this particular contract.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, a component of the Department of Defense. Oversight would typically involve contract officers, program managers, and potentially inspectors general to ensure compliance and performance.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Award Fee (CPAF) contract type can lead to higher costs.
- Long contract duration (1812 days) increases exposure to potential cost increases and performance issues.
- Lack of detail on specific services provided makes value assessment difficult.
- Potential for contractor to maximize profit through award fee rather than pure cost savings.
Tags
computer-systems-design-services, department-of-defense, ne, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.8 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. 200603!000100!5700!FA4600!55CONS/CC !DCA20002D5010 !A!N! !Y!6U01 !01 !20051014!20060930!064677243!016435559!016435559!N!NORTHROP GRUMMAN INFORMATION T!7575 COLSHIRE DRIVE !MC LEAN !VA!22102!35875!153!31!OFFUTT AFB !SARPY !NEBRASKA !+000001384123!N!N!000000000000!R421!TECHNICAL ASSISTANCE !S1 !SERVICES !000 !NOT DISCERNABLE !541512!E! !5!B!M!C!A! !99990909!B!F!Y!N!Z!A!N!R!2!002!F! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!B!N! ! ! ! ! ! !0001! !
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 $32.8 million.
What is the period of performance?
Start: 2005-10-14. End: 2010-09-30.
What specific technical assistance services are being provided, and how do they directly contribute to the Air Force's mission objectives?
The specific technical assistance services are not detailed in the provided data, only the NAICS code 541512 (Computer Systems Design Services). To assess value, understanding the scope of work is critical. These services likely support the operation, maintenance, or enhancement of IT systems essential for Air Force operations, such as command and control, intelligence, or logistics.
How is the 'award fee' component structured, and what are the key performance indicators (KPIs) that determine the fee amount?
The structure of the award fee and its associated KPIs are not detailed in the provided data. For a Cost Plus Award Fee (CPAF) contract, the award fee is intended to incentivize contractor performance beyond basic requirements. Understanding the specific metrics and targets is crucial for evaluating whether the fee is justified and if it truly drives superior outcomes for the government.
What was the competitive landscape like for this 'full and open' solicitation, and were there any significant deviations from the initial solicitation requirements?
While the contract was awarded under 'full and open competition,' the provided data does not detail the number of bids received or the specifics of the competitive process. Understanding the number of proposals submitted and the evaluation criteria would offer insight into the effectiveness of the competition. Any significant deviations from the solicitation could also impact the final price and value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DCA20002D5010
IDV Type: IDC
Timeline
Start Date: 2005-10-14
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2015-05-22
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