Northrop Grumman Secures $81M USAF Security Support Contract Amidst Full and Open Competition
Contract Overview
Contract Amount: $81,018,586 ($81.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: General Services Administration
Start Date: 2017-07-03
End Date: 2023-01-02
Contract Duration: 2,009 days
Daily Burn Rate: $40.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CL,CT::IGF USAFCENT/FP SECURITY SUPPORT SERVICES
Place of Performance
Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152
Plain-Language Summary
General Services Administration obligated $81.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::CL,CT::IGF USAFCENT/FP SECURITY SUPPORT SERVICES Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for $81M. 2. Competition was full and open, suggesting potential for competitive pricing. 3. The contract spans engineering services within the IT sector. 4. Risk is moderate due to the long duration and fixed-price nature.
Value Assessment
Rating: good
The contract's value of $81M over approximately 5.5 years appears reasonable for comprehensive security support services. Benchmarking against similar large-scale engineering services contracts is difficult without more granular data, but the fixed-price structure suggests an effort to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value. The use of a delivery order under a larger contract structure is a common procurement method.
Taxpayer Impact: Full and open competition aims to maximize taxpayer value by fostering a competitive environment that drives down costs and improves service quality.
Public Impact
Ensures critical security support for USAF CENT/FP operations. Supports technological advancements in defense security infrastructure. Impacts personnel and operational readiness within the Air Force.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (approx. 5.5 years) could lead to scope creep or evolving needs.
- Fixed-price contract may limit flexibility if unforeseen technical challenges arise.
- Sole contractor for a critical function could pose a single point of failure risk.
Positive Signals
- Full and open competition suggests a competitive award process.
- Experienced contractor (Northrop Grumman) likely brings significant expertise.
- Fixed-price contract provides cost certainty for the government.
Sector Analysis
This contract falls within Engineering Services, a broad category often supporting IT and defense infrastructure. Spending in this sector is substantial, driven by modernization and operational needs. Benchmarks vary widely based on service scope and complexity.
Small Business Impact
The data indicates this contract was awarded to a large business (Northrop Grumman Systems Corporation) and does not show any specific small business set-aside or subcontracting goals. Therefore, the direct impact on small businesses appears minimal for this specific award.
Oversight & Accountability
Awarded under GSA's Federal Acquisition Service, this contract likely benefits from established oversight mechanisms. However, the long duration necessitates ongoing monitoring to ensure performance, cost control, and adherence to contract terms.
Related Government Programs
- Engineering Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns if scope expands beyond initial estimates.
- Risk of vendor lock-in due to specialized services.
- Dependence on a single large contractor for critical security functions.
- Technological obsolescence if services are not continuously updated.
Tags
engineering-services, general-services-administration, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $81.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::CL,CT::IGF USAFCENT/FP SECURITY SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $81.0 million.
What is the period of performance?
Start: 2017-07-03. End: 2023-01-02.
What specific engineering services are included, and how do they align with current USAF CENT/FP security needs?
The contract covers engineering services for USAF CENT/FP security support. While the exact services aren't detailed, they likely encompass technical solutions, system integration, and potentially cybersecurity measures to enhance operational security. The alignment depends on the evolving threat landscape and the specific mission requirements of USAF CENT/FP.
How was the $81M price determined to be fair and reasonable under full and open competition?
Under full and open competition, the price is typically determined fair and reasonable based on the bids received from multiple qualified offerors. The government evaluates proposals based on technical merit and price. The lowest price technically acceptable or best value determination, considering trade-offs, would have established the $81M as reasonable.
What are the key performance indicators (KPIs) used to measure the effectiveness of these security support services?
Key performance indicators would likely focus on system uptime, response times to security incidents, successful implementation of security protocols, and overall reduction in security vulnerabilities. Specific metrics would be defined in the contract's Performance Work Statement (PWS) to ensure the contractor meets the required security objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: ID04170004
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $87,692,128
Exercised Options: $82,009,071
Current Obligation: $81,018,586
Actual Outlays: $-237,625
Subaward Activity
Number of Subawards: 150
Total Subaward Amount: $97,348,341
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: 2017-07-03
Current End Date: 2023-01-02
Potential End Date: 2023-01-02 00:00:00
Last Modified: 2022-12-08
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