DOT's $73.6M IFMS Contract with Northrop Grumman: All Other Professional Services
Contract Overview
Contract Amount: $73,614,892 ($73.6M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Transportation
Start Date: 2003-10-10
End Date: 2018-10-28
Contract Duration: 5,497 days
Daily Burn Rate: $13.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: INVOICE AND FINANCIAL MANAGEMENT SERVICES (IFMS)
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Transportation obligated $73.6 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: INVOICE AND FINANCIAL MANAGEMENT SERVICES (IFMS) Key points: 1. Contract awarded for Invoice and Financial Management Services (IFMS). 2. Northrop Grumman Information Technology Inc. is the contractor. 3. The contract falls under 'All Other Professional, Scientific, and Technical Services'. 4. Significant spending of $73.6 million over its duration. 5. Awarded under full and open competition.
Value Assessment
Rating: fair
The contract value of $73.6 million over nearly 15 years suggests a moderate annual spend. Without specific per-unit cost data or benchmarks for IFMS, a precise value assessment is difficult. However, the duration implies a sustained need and potentially negotiated rates over time.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust process for soliciting bids and ensuring fair pricing. This method generally leads to better price discovery and potentially more competitive pricing compared to limited or sole-source awards.
Taxpayer Impact: The use of full and open competition aims to maximize taxpayer value by ensuring the government receives competitive pricing for the services rendered.
Public Impact
Impacts financial management operations within the Federal Aviation Administration. Supports critical invoice processing and financial data management. Ensures continuity of essential financial services for the agency. Potential for long-term contractor relationship impacting future procurements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (nearly 15 years) may indicate potential for price creep or outdated technology.
- Lack of specific per-unit cost data makes detailed value analysis challenging.
- Contractor is a large business, with no indication of small business participation.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Contract covers essential financial management services for the FAA.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
The 'All Other Professional, Scientific, and Technical Services' sector is broad, encompassing a wide range of specialized support. Spending benchmarks for IFMS specifically are not readily available, but the $73.6 million over its life suggests a significant, long-term investment in financial infrastructure.
Small Business Impact
The data indicates this contract was awarded to a large business (Northrop Grumman Information Technology Inc.) and does not show any specific set-aside for small businesses. Further analysis would be needed to determine if small businesses were subcontracted.
Oversight & Accountability
The contract was awarded under full and open competition, which implies a structured procurement process. However, the long duration and lack of detailed performance metrics in the provided data make ongoing oversight and accountability assessment difficult without further information.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Long contract duration potentially leading to outdated services or increased costs over time.
- Lack of detailed performance metrics or specific per-unit cost data hinders thorough value assessment.
- No indication of small business participation or subcontracting.
- Potential for vendor lock-in due to the long-term nature of the contract.
Tags
all-other-professional-scientific-and-te, department-of-transportation, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $73.6 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. INVOICE AND FINANCIAL MANAGEMENT SERVICES (IFMS)
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 Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $73.6 million.
What is the period of performance?
Start: 2003-10-10. End: 2018-10-28.
What was the average annual cost of these IFMS services, and how does it compare to industry benchmarks for similar financial management solutions?
The total contract value of $73.6 million over approximately 15 years (5497 days) equates to an average annual cost of roughly $4.9 million. Direct comparison to industry benchmarks is difficult without knowing the specific scope and complexity of the IFMS. However, this figure represents a substantial investment in financial management infrastructure.
Given the long duration, what mechanisms were in place to mitigate risks associated with technological obsolescence and potential cost overruns?
The provided data does not detail specific risk mitigation mechanisms for technological obsolescence or cost overruns. A Firm Fixed Price contract offers some cost certainty, but the long duration necessitates proactive contract management and potential contract modifications to address evolving technological needs and ensure continued value.
How effectively did the full and open competition process ensure the government secured the best value for these essential financial management services?
The full and open competition is a strong indicator that the government aimed to secure the best value. This process typically involves multiple bidders, fostering price competition and allowing the government to select the offer that best balances cost and technical merit. The long-term nature of the contract suggests the initial competitive award was deemed advantageous.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
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: $79,600,000
Exercised Options: $75,850,542
Current Obligation: $73,614,892
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2003-10-10
Current End Date: 2018-10-28
Potential End Date: 2018-12-28 00:00:00
Last Modified: 2018-06-08
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