DoD's $163.7M Logistics Support Contract Awarded to Northrop Grumman in 1999
Contract Overview
Contract Amount: $163,713,966 ($163.7M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 1999-06-11
End Date: 2011-02-28
Contract Duration: 4,280 days
Daily Burn Rate: $38.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: 199910!2100!0263!BT57 !DIRECTORATE OF PENINSULA CONTRG !DABT5799C0009 !A!*!* !19990611!20000630!059069211!059069211!008255408!N!0JRC1!NORTHROP GRUMMAN TECHNICAL SER!2411 DULLES CORNER PARK !HERNDON !VA!20171!29088!700!51!FORT EUSTIS !NEWPORT NEWS (CITY) !VIRGINIA !0001!+000000982978!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8744!3!*!*!*!B!A!*!A !N!R!2!003!B!* !C!N!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!D!N!*!*!*!*!*!
Place of Performance
Location: FORT EUSTIS, NEWPORT NEWS (CITY) County, VIRGINIA, 23604
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $163.7 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: 199910!2100!0263!BT57 !DIRECTORATE OF PENINSULA CONTRG !DABT5799C0009 !A!*!* !19990611!20000630!059069211!059069211!008255408!N!0JRC1!NORTHROP GRUMMAN TECHNICAL SER!2411 DULLES CORNER PARK !HERNDON !VA!20171!29088!700!51!FORT EUSTIS !NEWPOR… Key points: 1. The contract, valued at $163.7 million, was awarded in 1999 for logistics support services. 2. Northrop Grumman Technical Services secured the contract through full and open competition. 3. The contract duration was extended significantly, raising questions about initial cost and scope. 4. The sector is primarily IT and services, with a focus on facilities support.
Value Assessment
Rating: questionable
The initial award was $163.7M, but the final value reached $38.25M, indicating potential overestimation or scope changes. The extended duration and multiple modifications warrant scrutiny.
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 significant modifications and extensions may have impacted the original price discovery.
Taxpayer Impact: While competition was intended, the extended duration and potential scope creep could lead to taxpayer funds being used for services beyond the initial intent.
Public Impact
Taxpayers may have funded extended services beyond the original scope. The contract's longevity raises questions about the initial needs assessment and cost-effectiveness. Oversight of contract modifications and extensions is crucial for ensuring value for money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Extended contract duration
- Potential scope creep
- Significant modifications
Positive Signals
- Awarded under full and open competition
- Established contractor
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically focusing on facilities support and logistics. Benchmarks for similar long-term service contracts vary widely based on scope and duration.
Small Business Impact
There is no indication that small businesses were involved as subcontractors or partners in this contract, suggesting a lack of small business participation.
Oversight & Accountability
The significant extension of the contract duration and the numerous modifications suggest a need for robust oversight to ensure the services remain necessary and cost-effective.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Extended contract duration beyond initial estimates
- Significant contract modifications
- Potential for scope creep
- Lack of transparency on final cost drivers
- Limited small business participation
Tags
facilities-support-services, department-of-defense, va, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $163.7 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. 199910!2100!0263!BT57 !DIRECTORATE OF PENINSULA CONTRG !DABT5799C0009 !A!*!* !19990611!20000630!059069211!059069211!008255408!N!0JRC1!NORTHROP GRUMMAN TECHNICAL SER!2411 DULLES CORNER PARK !HERNDON !VA!20171!29088!700!51!FORT EUSTIS !NEWPORT NEWS (CITY) !VIRGINIA !0001!+000000982978!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8744!3!*!*!*!B!A!*!A !N!R!2!0
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN TECHNICAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $163.7 million.
What is the period of performance?
Start: 1999-06-11. End: 2011-02-28.
What was the primary driver for the extensive modifications and extensions to this contract beyond its original scope and duration?
The extensive modifications and extensions likely stemmed from evolving operational needs at Fort Eustis and the Directorate of Peninsula Contracting. As requirements changed over the years, contract modifications were used to adapt the scope of work, extend the period of performance, and adjust funding. This is common in long-term service contracts where initial requirements may not fully anticipate future needs.
How did the extended duration and modifications impact the overall cost-effectiveness of the logistics support services provided?
The extended duration and modifications could have impacted cost-effectiveness in several ways. While extensions might offer stability and continuity, they also increase the risk of cost overruns if not tightly managed. Without detailed data on the specific changes and their associated costs, it's difficult to definitively assess cost-effectiveness. However, the significant increase in the final value compared to the initial award warrants further investigation.
What mechanisms were in place to ensure continued competition or fair pricing throughout the contract's extended life?
While the contract began with full and open competition, the extended life and modifications would typically rely on contract clauses for price adjustments and potentially competitive task orders for new scopes of work. However, the lack of specific details on how pricing was managed during modifications makes it hard to assess. Robust oversight would be needed to ensure that any changes maintained fair and reasonable pricing.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2411 DULLES CORNER PARK, HERNDON, VA, 11
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1999-06-11
Current End Date: 2011-02-28
Potential End Date: 2011-02-28 00:00:00
Last Modified: 2013-07-10
More Contracts from Northrop Grumman Technical Services, Inc.
- CLS Support 31 OCT 2007 Through 30 OCT 2008. Numerous Options ARE Also Included, Which MAY BE Awarded AT a Later Date — $963.9M (Department of Defense)
- Battle Command Training Program Services — $522.2M (Department of Defense)
- Passenger Systems Program Directorate Software Application Development, Modernization, Enhancement, Operations and Maintenance Igf::ot::igf — $336.3M (Department of Homeland Security)
- THE Purpose of This Modification IS to Obligate Funding for the KC-10 CLS Services Support — $245.0M (Department of Defense)
- Program Office Request — $238.3M (Department of Defense)
View all Northrop Grumman Technical Services, 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)