DoD awards $217M+ for Engineering Services to Northrop Grumman, spanning over 5 years
Contract Overview
Contract Amount: $217,151,754 ($217.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2005-07-27
End Date: 2010-12-06
Contract Duration: 1,958 days
Daily Burn Rate: $110.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200510!059875!1700!N00164!CRANE DIVISION NAVAL SURFACE !N0017804D4091 !A!N! !Y!FC01 ! !20050727!20060930!064683464!008255408!016435559!N!NORTHROP GRUMMAN DEFENSE MISSI!12011 SUNSET HILLS ROAD !RESTON !VA!20190!24100!001!32!FALLON !CHURCHILL !NEVADA !+000000749090!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!D!20090331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !C!D!A!A!000!A!C!N! ! ! ! !1700!N00164!0001! !
Place of Performance
Location: FALLON, CHURCHILL County, NEVADA, 89406
State: Nevada Government Spending
Plain-Language Summary
Department of Defense obligated $217.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200510!059875!1700!N00164!CRANE DIVISION NAVAL SURFACE !N0017804D4091 !A!N! !Y!FC01 ! !20050727!20060930!064683464!008255408!016435559!N!NORTHROP GRUMMAN DEFENSE MISSI!12011 SUNSET HILLS ROAD !RESTON !VA!20190!24100!001!32!FALLON !CHUR… Key points: 1. Significant contract value exceeding $217 million awarded to a single large defense contractor. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. Potential risk associated with a large, sole-source-like award to a major defense player. 4. The sector is Engineering Services, a critical component of defense operations.
Value Assessment
Rating: good
The contract value of over $217 million for engineering services appears substantial. Benchmarking against similar large-scale defense engineering contracts would be necessary for a precise assessment, but the duration and scope suggest a competitive pricing strategy was likely employed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method generally promotes price discovery and competitive pricing. The presence of multiple bids (no=4) suggests a healthy competition, likely driving a more favorable price for the government.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the engineering services provided, as multiple companies vied for the contract.
Public Impact
Defense capabilities are enhanced through specialized engineering services. Taxpayer funds are allocated to critical defense infrastructure and technology development. The award supports a major defense contractor and its workforce. Long-term service provision ensures continuity in defense engineering support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Concentration of award to a single large contractor.
- Potential for scope creep over the contract's extended duration.
- Reliance on a single entity for critical engineering services.
Positive Signals
- Awarded through full and open competition.
- Multiple bids received, indicating market interest.
- Contract duration provides stability for critical services.
Sector Analysis
Engineering services are crucial for the defense sector, encompassing design, development, and maintenance of complex military systems. Spending benchmarks in this area can vary widely based on the specific technologies and services required, but this contract's value is significant.
Small Business Impact
This contract was awarded to a large prime contractor, Northrop Grumman. There is no explicit indication of small business subcontracting participation in the provided data, which warrants further investigation to ensure small business opportunities are being maximized.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The 'full and open competition' and multiple bids suggest a degree of accountability in the award process.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Large contract value awarded to a single entity.
- Cost Plus Fixed Fee (CPFF) pricing structure.
- Extended contract duration.
- Lack of explicit small business subcontracting information.
- Potential for vendor lock-in with a major defense contractor.
Tags
engineering-services, department-of-defense, nv, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $217.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200510!059875!1700!N00164!CRANE DIVISION NAVAL SURFACE !N0017804D4091 !A!N! !Y!FC01 ! !20050727!20060930!064683464!008255408!016435559!N!NORTHROP GRUMMAN DEFENSE MISSI!12011 SUNSET HILLS ROAD !RESTON !VA!20190!24100!001!32!FALLON !CHURCHILL !NEVADA !+000000749090!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A!D!200
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $217.2 million.
What is the period of performance?
Start: 2005-07-27. End: 2010-12-06.
What specific engineering services are being procured under this contract, and how do they align with current defense priorities?
The contract specifies 'Engineering Services' (NAICS 541330) and was awarded to Northrop Grumman. While the exact nature of the services isn't detailed, it likely pertains to the design, development, testing, or sustainment of defense systems. Further analysis would require reviewing the contract's statement of work to understand its alignment with specific defense modernization or operational needs.
Given the contract's duration and value, what are the primary risks associated with potential cost overruns or performance issues?
The primary risks include potential cost overruns due to the 'Cost Plus Fixed Fee' (CPFF) pricing structure, which can incentivize contractors to incur higher costs if not tightly managed. Performance issues could arise from the extended duration, leading to potential obsolescence of initial designs or challenges in maintaining expertise. Robust oversight and clear performance metrics are crucial to mitigate these risks.
How effectively does this contract leverage competition to ensure optimal value for taxpayer dollars over its lifespan?
The contract was awarded under 'Full and Open Competition' with four bids received, indicating a competitive initial award. However, the long duration (over 5 years) and the nature of engineering services mean that ongoing competition for task orders or future contract renewals is key to sustained value. Monitoring performance and exploring future competitive opportunities will be essential.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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
Solicitation ID: N0002405R3044
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4091
IDV Type: IDC
Timeline
Start Date: 2005-07-27
Current End Date: 2010-12-06
Potential End Date: 2010-12-06 00:00:00
Last Modified: 2025-05-02
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