DoD's $70.4M Northrop Grumman Contract for Remote Visual Assessment II Faces Scrutiny
Contract Overview
Contract Amount: $70,351,758 ($70.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-12-11
End Date: 2023-07-31
Contract Duration: 962 days
Daily Burn Rate: $73.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PRODUCTION AND DEVELOPMENT FOR REMOTE VISUAL ASSESSMENT II
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $70.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: PRODUCTION AND DEVELOPMENT FOR REMOTE VISUAL ASSESSMENT II Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for $70.4M. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 962 days, ending July 31, 2023. 4. The North American Industry Classification System (NAICS) code is 541330 (Engineering Services). 5. The contract type is Firm Fixed Price, which shifts risk to the contractor.
Value Assessment
Rating: fair
The contract value of $70.4M for engineering services appears substantial. Benchmarking against similar DoD contracts for remote visual assessment systems is needed to determine if this price is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific details of the bidding process and the number of bidders are not provided, making a definitive assessment of price discovery difficult.
Taxpayer Impact: Taxpayer funds are being utilized for engineering services related to remote visual assessment. The effectiveness and necessity of these services will determine the ultimate value for taxpayers.
Public Impact
Enhances Department of the Air Force's capabilities in remote visual assessment. Supports critical defense operations through advanced engineering services. Potential for technological advancements in surveillance and monitoring. Contract duration indicates a significant, long-term project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics.
- Potential for cost overruns if scope changes.
- Limited transparency on specific deliverables.
Positive Signals
- Firm Fixed Price contract structure.
- Utilized full and open competition.
- Supports critical Air Force operations.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense applications. Spending in this sector can vary widely based on technological advancements and national security priorities. Benchmarks for similar remote visual assessment systems are not readily available.
Small Business Impact
The data indicates the contract was awarded to Northrop Grumman Systems Corporation, a large defense contractor. There is no explicit information suggesting subcontracting opportunities for small businesses within this specific award, which warrants further investigation.
Oversight & Accountability
Oversight would typically involve contract performance reviews by the Department of the Air Force to ensure deliverables meet specifications and budget adherence. The firm fixed price nature provides some cost control, but monitoring for scope creep is essential.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed technical specifications.
- Absence of small business participation data.
- Limited information on performance metrics.
- Potential for scope creep in engineering services contracts.
- Need for independent cost-benefit analysis.
Tags
engineering-services, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $70.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. PRODUCTION AND DEVELOPMENT FOR REMOTE VISUAL ASSESSMENT 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 $70.4 million.
What is the period of performance?
Start: 2020-12-11. End: 2023-07-31.
What specific capabilities does 'Remote Visual Assessment II' provide, and how do these capabilities align with current Air Force operational needs?
The contract details do not specify the exact capabilities of 'Remote Visual Assessment II'. It likely involves advanced imaging, sensor technology, or data analysis for remote observation. Understanding its precise function and how it addresses evolving Air Force requirements is crucial for justifying the $70.4M expenditure and ensuring its strategic relevance.
Given the $70.4M value and full and open competition, what was the competitive landscape, and how was the winning bid assessed for value for money?
While full and open competition was used, the number of bidders and the evaluation criteria for the winning bid are not detailed. A thorough review would examine the bid proposals, cost breakdowns, and technical merits to confirm that Northrop Grumman's offer represented the best value for the government, considering both price and performance.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effective delivery of services?
The provided data lacks specific KPIs for the 'Remote Visual Assessment II' contract. Effective delivery relies on clearly defined metrics related to system performance, data accuracy, reliability, and timeliness. Without these, assessing the contractor's success and the overall effectiveness of the $70.4M investment becomes challenging for oversight bodies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $97,648,222
Exercised Options: $70,351,758
Current Obligation: $70,351,758
Subaward Activity
Number of Subawards: 388
Total Subaward Amount: $163,577,553
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA821415D0001
IDV Type: IDC
Timeline
Start Date: 2020-12-11
Current End Date: 2023-07-31
Potential End Date: 2023-07-31 00:00:00
Last Modified: 2024-08-01
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