GSA's $24.4M contract for strategic planning and program management support awarded to Northrop Grumman
Contract Overview
Contract Amount: $24,428,944 ($24.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: General Services Administration
Start Date: 2015-04-01
End Date: 2017-07-31
Contract Duration: 852 days
Daily Burn Rate: $28.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: STRATEGIC PLANNING BUSINESS ANALYSIS PROGRAM MANAGEMENT SUPPORT TITLE III LOGICAL FOLLOW ON IGF::OT::IGF FOR OTHER FUNCTIONS
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
General Services Administration obligated $24.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: STRATEGIC PLANNING BUSINESS ANALYSIS PROGRAM MANAGEMENT SUPPORT TITLE III LOGICAL FOLLOW ON IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Contract provides essential administrative management and general management consulting services. 2. Awarded under a full and open competition, suggesting a competitive bidding process. 3. The contract duration of 852 days indicates a medium-term engagement for critical support. 4. Time and Materials pricing structure may pose cost control challenges if not closely managed. 5. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. Northrop Grumman's extensive experience in defense and government contracting suggests a capable provider. 7. The contract's focus on strategic planning and program management is vital for agency efficiency.
Value Assessment
Rating: good
The contract value of $24.4 million over approximately 2.3 years appears reasonable for strategic planning and program management support services. Benchmarking against similar contracts for management consulting services indicates that this award falls within a typical range for the scope and duration. The Time and Materials (T&M) pricing, while common for services requiring flexibility, warrants close monitoring to ensure cost efficiency and prevent scope creep. Without specific details on labor categories and rates, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit an offer. The presence of a single award (no) suggests that Northrop Grumman was selected as the best value offeror among potentially multiple bidders. A full and open competition generally fosters price discovery and allows the government to select the most advantageous solution, balancing cost and technical factors. The specific number of bidders is not provided, which would offer further insight into the intensity of the competition.
Taxpayer Impact: A full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives competitive offers, maximizing the use of public funds.
Public Impact
Federal agencies benefit from enhanced strategic planning and program management capabilities, leading to more efficient operations. Services delivered include business analysis, program management support, and strategic planning, crucial for government functions. The contract's impact is primarily within the administrative and management consulting sector, supporting federal agency operations. Workforce implications include the potential for skilled consultants to contribute to government project success.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently, as it allows for billing based on actual labor hours and material costs.
- Lack of specific details on the number of bidders in the full and open competition makes it difficult to fully assess the competitive pressure on pricing.
- The contract is a delivery order, which implies it is part of a larger IDIQ contract; understanding the overall IDIQ's performance and pricing is crucial for a complete assessment.
Positive Signals
- Awarded through full and open competition, suggesting a robust and fair bidding process.
- Northrop Grumman is a large, established defense and aerospace company with significant experience in government contracting.
- The contract addresses critical functions such as strategic planning and program management, vital for government efficiency.
- The contract duration of over two years allows for sustained support and project continuity.
Sector Analysis
This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector is characterized by firms providing expertise in organizational efficiency, strategic planning, and program management to various clients, including government agencies. The federal government is a significant consumer of these services to improve operational effectiveness and implement complex programs. The market size for management consulting services is substantial, with government contracts forming a notable portion. This specific award to Northrop Grumman represents a typical engagement for specialized consulting support within the federal landscape.
Small Business Impact
This contract does not appear to have a small business set-aside (ss: false, sb: false). As a large contract awarded to a major corporation, the primary impact on small businesses would likely be through subcontracting opportunities, if any are mandated or pursued by the prime contractor. Without specific subcontracting plans or goals detailed in the award, it is difficult to assess the direct benefit to the small business ecosystem. However, large prime contractors often engage small businesses for specialized support, which can provide valuable experience and revenue streams.
Oversight & Accountability
The General Services Administration (GSA) Federal Acquisition Service (FAS) is responsible for overseeing this contract. Oversight mechanisms would typically include contract performance reviews, financial audits, and adherence to the terms and conditions of the Time and Materials (T&M) contract. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.
Related Government Programs
- Management and Consulting Services
- Strategic Planning Support
- Program Management Support
- Federal IT Consulting
- Administrative Support Services
Risk Flags
- Potential for cost overruns due to Time and Materials pricing structure.
- Lack of specific bidder count limits full assessment of competitive intensity.
- Reliance on delivery order structure requires understanding of the parent IDIQ contract.
Tags
management-consulting, strategic-planning, program-management, general-services-administration, northrop-grumman, administrative-management, time-and-materials, full-and-open-competition, delivery-order, federal-acquisition-service, ohio, professional-services
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $24.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. STRATEGIC PLANNING BUSINESS ANALYSIS PROGRAM MANAGEMENT SUPPORT TITLE III LOGICAL FOLLOW ON IGF::OT::IGF FOR OTHER FUNCTIONS
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 $24.4 million.
What is the period of performance?
Start: 2015-04-01. End: 2017-07-31.
What is Northrop Grumman's track record with similar government contracts, particularly those involving strategic planning and program management?
Northrop Grumman Systems Corporation has an extensive and well-documented track record with the U.S. federal government, particularly in defense, aerospace, and information technology sectors. They frequently engage in contracts requiring strategic planning, program management, systems integration, and technical support. Their experience spans numerous large-scale government programs, often involving complex requirements and significant budgets. While specific performance metrics for this particular contract are not detailed here, Northrop Grumman's overall history suggests a capacity to handle demanding government projects. Their involvement in various defense and civilian agency initiatives indicates a broad understanding of federal procurement processes and operational needs. Past performance evaluations on similar contracts would provide a more granular view of their success in delivering strategic and programmatic support.
How does the $24.4 million contract value compare to other federal contracts for similar administrative management and general management consulting services?
The $24.4 million contract value for administrative management and general management consulting services, spanning approximately 2.3 years, is within a moderate range for federal engagements of this nature. Contracts in this category can vary widely, from smaller, specialized consulting tasks costing hundreds of thousands of dollars to massive, multi-year programs exceeding hundreds of millions. Given that this is a delivery order, it likely represents a portion of a larger IDIQ vehicle. Benchmarking against similar NAICS code 541611 contracts suggests that this award is neither exceptionally large nor small. Factors influencing value include the specific services required (e.g., strategic planning depth, program complexity), the duration, the labor mix, and the level of expertise demanded. The competitive nature of its award provides some assurance that the price was deemed fair and reasonable relative to the scope.
What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude and duration?
The primary risk associated with a Time and Materials (T&M) contract, especially one valued at $24.4 million over 852 days, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer project durations or less efficient work if not rigorously monitored. For the government, risks include a lack of cost certainty, difficulty in controlling scope creep, and the potential for the contractor to bill for excessive hours or unnecessary materials. Effective risk mitigation requires robust government oversight, detailed tracking of labor hours and material usage, clear performance metrics, and strong contract administration to ensure the contractor remains focused on efficient delivery and value for money.
How does the General Services Administration (GSA) ensure accountability and transparency for contracts like this one?
The General Services Administration (GSA) employs several mechanisms to ensure accountability and transparency for contracts such as this strategic planning and program management support award. Firstly, the contract award itself is publicly documented through systems like SAM.gov, providing basic details about the contractor, value, and scope. GSA's Federal Acquisition Service (FAS) is responsible for managing many of these contracts, implementing oversight through contract officers and specialists who monitor performance, review invoices, and ensure compliance with contract terms. Performance standards and reporting requirements are typically built into the contract. Furthermore, GSA is subject to audits by its own Office of Inspector General (OIG) and the Government Accountability Office (GAO), which investigate potential fraud, waste, and abuse, and review procurement practices. Regular reporting on contract spending and performance also contributes to transparency.
What is the historical spending pattern for administrative management and general management consulting services by the General Services Administration?
The General Services Administration (GSA) is a major procurer of administrative management and general management consulting services, reflecting its role in supporting federal agency operations and providing shared services. Historical spending patterns show GSA consistently awarding significant contracts within NAICS code 541611. This spending is driven by the need for expertise in areas like strategic planning, organizational development, process improvement, and program management across various federal departments. GSA often utilizes indefinite-delivery/indefinite-quantity (IDIQ) vehicles, such as the STARS or VETS GWACs, and its own Multiple Award Schedules (MAS), to facilitate the procurement of these services. Spending fluctuates based on agency needs, budget allocations, and specific government-wide initiatives. The trend generally indicates a sustained demand for these professional services to enhance government efficiency and effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: ID05140122
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 2340 DULLES CORNER BLVD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,044,628
Exercised Options: $26,764,907
Current Obligation: $24,428,944
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS10F104AA
IDV Type: FSS
Timeline
Start Date: 2015-04-01
Current End Date: 2017-07-31
Potential End Date: 2017-07-31 00:00:00
Last Modified: 2018-01-08
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