DoD Awards Northrop Grumman $16.4M for Strategic Planning & Program Management Support

Contract Overview

Contract Amount: $16,436,941 ($16.4M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2024-04-16

End Date: 2026-03-15

Contract Duration: 698 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: STRATEGIC PLANNING, BUSINESS ANALYSIS, & PROGRAM MANAGEMENT SUPPORT II

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: STRATEGIC PLANNING, BUSINESS ANALYSIS, & PROGRAM MANAGEMENT SUPPORT II Key points: 1. Contract awarded to a large, established defense contractor. 2. Focus on strategic planning and program management indicates critical support functions. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. The Engineering Services sector is vital for complex defense initiatives.

Value Assessment

Rating: good

The $16.4M award for a 698-day duration appears reasonable for specialized strategic planning and program management support. Benchmarking against similar large-scale defense support contracts would provide further context on value.

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. This method is generally expected to yield fair pricing and identify the most capable offeror.

Taxpayer Impact: Competition in this award is positive for taxpayers, as it aims to secure the best value. However, the Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain controlled.

Public Impact

Supports critical Air Force strategic planning and program execution. Ensures continuity of essential business analysis and management services. Impacts the efficiency and effectiveness of defense program delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within Engineering Services, a sector crucial for the Department of Defense's complex technological and operational requirements. Spending in this area often reflects the need for specialized expertise in planning and managing large-scale projects.

Small Business Impact

The awardee is a large business, Northrop Grumman Systems Corporation. There is no indication of small business participation in this specific delivery order, which is common for large, complex prime contracts.

Oversight & Accountability

The Department of the Air Force is responsible for oversight. The Cost Plus Fixed Fee structure necessitates robust financial monitoring and performance management to ensure accountability and prevent cost overruns.

Related Government Programs

Risk Flags

Tags

engineering-services, department-of-defense, oh, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. STRATEGIC PLANNING, BUSINESS ANALYSIS, & PROGRAM MANAGEMENT SUPPORT II

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2024-04-16. End: 2026-03-15.

What specific strategic planning and program management functions will Northrop Grumman perform, and how do these align with current Air Force priorities?

The contract likely encompasses a range of activities including strategic analysis, business process improvement, program roadmap development, risk assessment, and performance metric tracking. These functions are crucial for ensuring the Air Force's strategic objectives are met efficiently and effectively, particularly in areas of modernization and operational readiness.

What are the key performance indicators (KPIs) and reporting requirements to mitigate risks associated with the Cost Plus Fixed Fee structure?

Key performance indicators would likely focus on timely delivery of strategic documents, successful program milestone achievement, adherence to budget targets (within the fixed fee constraints), and quality of analysis. Robust reporting requirements would mandate regular updates on progress, expenditures, identified risks, and proposed mitigation strategies to ensure transparency and control.

How will the effectiveness of this support contract be measured in terms of improving Air Force program outcomes?

Effectiveness will be measured by the tangible improvements in program execution, such as reduced timelines, cost savings achieved through better planning, enhanced decision-making based on provided analysis, and successful achievement of program goals. Feedback from Air Force program managers and the ultimate success of the programs supported will be critical indicators.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $58,693,545

Exercised Options: $17,531,607

Current Obligation: $16,436,941

Actual Outlays: $1,500,735

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $2,624,481

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU125

IDV Type: IDC

Timeline

Start Date: 2024-04-16

Current End Date: 2026-03-15

Potential End Date: 2029-09-15 00:00:00

Last Modified: 2026-01-05

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