CFTC awards $22.7M for Custom Computer Programming Services to Northrop Grumman
Contract Overview
Contract Amount: $22,679,411 ($22.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Commodity Futures Trading Commission
Start Date: 2010-09-28
End Date: 2013-03-31
Contract Duration: 915 days
Daily Burn Rate: $24.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: SOFTWARE DEVELOPMENT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20581
Plain-Language Summary
Commodity Futures Trading Commission obligated $22.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SOFTWARE DEVELOPMENT Key points: 1. Significant contract value of $22.7 million awarded. 2. Northrop Grumman, a large defense contractor, secured the award. 3. The contract was awarded under full and open competition. 4. The sector is IT services, specifically custom computer programming.
Value Assessment
Rating: fair
The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. The total award value is $22.7 million, but without specific per-unit cost data or comparison points, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Time and Materials pricing structure may limit the effectiveness of competitive bidding in controlling final costs.
Taxpayer Impact: Taxpayers benefit from competition, but the Time and Materials contract type introduces risk for cost control, potentially impacting the overall value for money.
Public Impact
This contract supports critical IT functions for the Commodity Futures Trading Commission. The duration of the contract (over 2.5 years) indicates a substantial, ongoing need for these services. The award to a major contractor like Northrop Grumman suggests a focus on established capabilities for complex IT projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure
- Lack of specific performance metrics in provided data
Positive Signals
- Awarded under full and open competition
- Award to a well-established contractor
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is crucial for government agencies to maintain and upgrade their technological infrastructure and operational capabilities.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as Northrop Grumman is a large corporation. There is no indication of subcontracting opportunities for small businesses within the provided information.
Oversight & Accountability
The contract was awarded by the Commodity Futures Trading Commission. Oversight would involve monitoring the contractor's adherence to the Time and Materials contract terms and ensuring deliverables meet the agency's requirements.
Related Government Programs
- Custom Computer Programming Services
- Commodity Futures Trading Commission Contracting
- Commodity Futures Trading Commission Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of detailed performance metrics in the provided data.
- No clear indication of small business subcontracting.
- Limited insight into the specific technical requirements and their complexity.
Tags
custom-computer-programming-services, commodity-futures-trading-commission, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Commodity Futures Trading Commission awarded $22.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SOFTWARE DEVELOPMENT
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Commodity Futures Trading Commission (Commodity Futures Trading Commission).
What is the total obligated amount?
The obligated amount is $22.7 million.
What is the period of performance?
Start: 2010-09-28. End: 2013-03-31.
What were the specific deliverables and performance metrics outlined in the contract to ensure effective service delivery and value for money?
The provided data does not detail the specific deliverables or performance metrics. Effective service delivery would typically be measured against defined milestones, quality standards, and adherence to project timelines. Without this information, assessing the contract's effectiveness is challenging, though the agency's oversight would aim to ensure these aspects are met.
How did the agency ensure cost control given the Time and Materials pricing structure, and what was the final cost compared to initial estimates?
The agency likely relied on contract clauses, regular reporting, and potentially independent cost estimates to manage costs under the Time and Materials structure. The provided data shows the total award value but not a comparison to initial estimates or a breakdown of actual hours and rates, making it difficult to assess cost control effectiveness.
What is the strategic importance of this custom software development for the CFTC's mission, and how does it align with their long-term IT strategy?
This custom software development is likely crucial for the CFTC's mission of regulating commodity and derivatives markets. It could support data analysis, regulatory enforcement, or operational efficiency. Understanding its alignment with the CFTC's long-term IT strategy would require examining the agency's technology roadmaps and modernization plans.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
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: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 12900 FEDERAL SYSTEMS PARK DR, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,500,000
Exercised Options: $23,500,000
Current Obligation: $22,679,411
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F4522G
IDV Type: FSS
Timeline
Start Date: 2010-09-28
Current End Date: 2013-03-31
Potential End Date: 2013-03-31 00:00:00
Last Modified: 2021-12-06
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