GSA's $14.6M Contract with Northrop Grumman for IT Services: A Competitive Delivery Order Analysis
Contract Overview
Contract Amount: $14,634,489 ($14.6M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: General Services Administration
Start Date: 2001-11-15
End Date: 2005-11-30
Contract Duration: 1,476 days
Daily Burn Rate: $9.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 6
Pricing Type: TIME AND MATERIALS
Sector: IT
Plain-Language Summary
General Services Administration obligated $14.6 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: Key points: 1. The contract awarded to Northrop Grumman Information Technology Inc. totals $14,634,489.23. 2. This was a competitive delivery order, suggesting a degree of market vetting. 3. The contract duration was 1476 days, ending in November 2005. 4. The sector appears to be Information Technology, a common area for federal spending. 5. The use of Time and Materials pricing warrants scrutiny for cost control.
Value Assessment
Rating: fair
The Time and Materials pricing structure can lead to cost overruns if not closely monitored. Benchmarking against similar IT service contracts from the early 2000s would be necessary for a definitive value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
As a competitive delivery order, there was an expectation of price discovery through competition. However, the effectiveness of this competition is dependent on the number of bidders and the specific terms negotiated.
Taxpayer Impact: Taxpayer funds were used for IT services. The ultimate impact depends on the value delivered relative to the cost and the efficiency of the procurement process.
Public Impact
Federal agencies rely on contractors for essential IT services, impacting operational efficiency. The duration of the contract suggests a long-term need for these services. Procurement methods like competitive delivery orders aim to balance speed and cost-effectiveness for the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Contract duration
- Lack of specific performance metrics in provided data
Positive Signals
- Competitive award type
- Established contractor
Sector Analysis
This contract falls within the Information Technology sector, which represents a significant portion of federal spending. Benchmarks for IT services vary widely based on complexity and duration, but consistent oversight is key.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.
Oversight & Accountability
The General Services Administration (GSA) is responsible for overseeing this contract. Accountability would involve monitoring performance, costs, and adherence to contract terms throughout its lifecycle.
Related Government Programs
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of detailed performance metrics in the provided data.
- Uncertainty regarding the effectiveness of the competitive process.
- Limited insight into small business participation.
- Contract duration could indicate potential for vendor lock-in if not managed.
Tags
general-services-administration, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $14.6 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $14.6 million.
What is the period of performance?
Start: 2001-11-15. End: 2005-11-30.
What was the specific scope of work for these IT services, and how did it align with agency needs?
The provided data lacks details on the specific scope of work. Understanding the services rendered (e.g., software development, network maintenance, help desk support) is crucial for assessing value. Without this, it's difficult to determine if the $14.6M was efficiently spent or if the services truly met the agency's evolving technological requirements during the contract period.
Were there any performance issues or cost overruns associated with the Time and Materials pricing?
The Time and Materials (T&M) pricing model carries inherent risks of cost escalation if not managed rigorously. While the contract was completed, the data doesn't reveal if Northrop Grumman exceeded initial estimates or if the agency actively managed labor hours and material costs to mitigate potential overspending. Post-contract reviews or performance reports would clarify this.
How effective was the competitive process in securing favorable pricing and terms for the government?
The contract was awarded via a 'COMPETITIVE DELIVERY ORDER,' suggesting multiple bids were considered. However, the effectiveness hinges on the number of competitors, the quality of their proposals, and the negotiation leverage GSA possessed. Without knowing the bid landscape or the final negotiated rates, it's challenging to definitively state how well this competitive process served taxpayer interests.
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 6
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 2411 DULLES CORNER PARK #, HERNDON, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $14,634,489
Exercised Options: $14,634,489
Current Obligation: $14,634,489
Parent Contract
Parent Award PIID: GS09K99BHD0009
IDV Type: GWAC
Timeline
Start Date: 2001-11-15
Current End Date: 2005-11-30
Potential End Date: 2005-11-30 00:00:00
Last Modified: 2012-05-04
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 General Services Administration Contracts
- Software Life Cycle Development — $1.4B (Science Applications International Corporation)
- Task Order (TO) 47qfca21f0018 IS Hereby Awarded to Booz Allen Hamilton, Inc. (BAH) to Provide Enterprise Level Data to the Ousd(c), and ITS Strategic Partners (I.E., DOD Fourth Estate, DOD Departments, and IC Community) — $1.4B (Booz Allen Hamilton Inc)
- Federal Contract — $1.2B (Booz Allen Hamilton Inc)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (Science Applications International Corporation)
- Task Order Award — $1.1B (Booz Allen Hamilton Inc)