DHS awards $30M TME&I support services task order to Northrop Grumman, raising questions on value and competition
Contract Overview
Contract Amount: $30,079,615 ($30.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2018-03-04
End Date: 2020-12-19
Contract Duration: 1,021 days
Daily Burn Rate: $29.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: TASK ORDER 008 THREAT MITIGATION, ENGINEERING, AND IMAGING (TME&I) SUPPORT SERVICES
Place of Performance
Location: EGG HARBOR TOWNSHIP, ATLANTIC County, NEW JERSEY, 08234
Plain-Language Summary
Department of Homeland Security obligated $30.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TASK ORDER 008 THREAT MITIGATION, ENGINEERING, AND IMAGING (TME&I) SUPPORT SERVICES Key points: 1. Significant contract value of $30M for specialized support services. 2. Northrop Grumman, a large defense contractor, secured the award. 3. Potential concerns regarding the effectiveness of competition and taxpayer value. 4. The contract falls under Educational Support Services, with a NAICS code of 611710.
Value Assessment
Rating: questionable
The contract value of $30M for TME&I support services appears high given the NAICS code and the nature of the services. Benchmarking against similar contracts is difficult without more detailed service descriptions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive. However, the specific details of the bidding process and the number of bidders are not provided, making it difficult to assess the true price discovery.
Taxpayer Impact: The effectiveness of taxpayer funds is questionable without a clear demonstration of competitive pricing and value for money.
Public Impact
Taxpayers may not be receiving optimal value for $30M spent on specialized support services. The award to a single large contractor could limit opportunities for smaller, innovative firms. Lack of transparency on performance metrics makes it hard to assess the impact of these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clear performance metrics.
- Potential for cost overruns in Time and Materials contract.
- Limited insight into competitive landscape beyond 'full and open'.
Positive Signals
- Awarded under full and open competition.
- Contract duration is defined.
Sector Analysis
The Transportation Security Administration (TSA) operates within the broader Department of Homeland Security. Spending on support services like TME&I is common, but the specific value and competitive nature of this $30M award warrant scrutiny.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication that small businesses were involved as subcontractors or prime contractors in this specific task order.
Oversight & Accountability
Oversight is crucial for Time and Materials contracts to prevent cost creep. The TSA's internal controls and reporting mechanisms for this task order need to be robust to ensure accountability.
Related Government Programs
- Educational Support Services
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- High contract value for potentially undefined services.
- Lack of specific performance metrics.
- Time and Materials contract type can lead to cost overruns.
- Limited transparency on the competitive bidding process.
- No indication of small business participation.
Tags
educational-support-services, department-of-homeland-security, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $30.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TASK ORDER 008 THREAT MITIGATION, ENGINEERING, AND IMAGING (TME&I) SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Transportation Security Administration).
What is the total obligated amount?
The obligated amount is $30.1 million.
What is the period of performance?
Start: 2018-03-04. End: 2020-12-19.
What specific threat mitigation, engineering, and imaging support services were provided, and how do they align with the TSA's mission?
The provided data lacks specific details on the services rendered under Task Order 008. While the NAICS code is 611710 (Educational Support Services), the task order title suggests a more technical and security-oriented function. Clarification is needed to understand how these services directly contribute to the TSA's operational effectiveness and security mandates.
How effectively did the 'full and open competition' process ensure competitive pricing for this $30M contract?
While the award states 'full and open competition,' the absence of data on the number of bids received and the final negotiated price relative to initial proposals makes it difficult to assess its effectiveness. Without this information, it's hard to determine if taxpayers received the best possible value or if the competition truly drove down costs.
What are the key performance indicators (KPIs) for this task order, and how has Northrop Grumman performed against them?
The provided data does not include any Key Performance Indicators (KPIs) or performance reports for this task order. Understanding the specific metrics used to evaluate the contractor's success and the actual performance outcomes is essential for assessing the overall effectiveness and value of the $30M investment.
Industry Classification
NAICS: Educational Services › Educational Support Services › Educational Support Services
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING 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
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $54,416,531
Exercised Options: $30,393,502
Current Obligation: $30,079,615
Subaward Activity
Number of Subawards: 61
Total Subaward Amount: $46,944,232
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSTS0715DTWE204
IDV Type: IDC
Timeline
Start Date: 2018-03-04
Current End Date: 2020-12-19
Potential End Date: 2020-12-19 12:00:00
Last Modified: 2025-09-05
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