Northrop Grumman received over $11.2M for IT support to the Defense Logistics Agency

Contract Overview

Contract Amount: $11,282,514 ($11.3M)

Contractor: Northrop Grumman Information Technology Inc

Awarding Agency: General Services Administration

Start Date: 2007-11-30

End Date: 2008-11-30

Contract Duration: 366 days

Daily Burn Rate: $30.8K/day

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: AUTOMATED INFORMATION SYSTEM SERVICES SUPPORT FOR DEFENSE LOGISTICS AGENCY

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $11.3 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: AUTOMATED INFORMATION SYSTEM SERVICES SUPPORT FOR DEFENSE LOGISTICS AGENCY Key points: 1. Contract awarded for IT support services, indicating a need for specialized technical assistance within the defense sector. 2. The contract duration was one year, suggesting a focused scope of work or a bridge to a larger, future requirement. 3. Awarded by the General Services Administration, this contract likely leveraged existing IT service vehicles. 4. The 'Time and Materials' contract type can sometimes lead to cost overruns if not closely managed. 5. The single award indicates a specific need or a pre-existing relationship with the contractor. 6. This spending falls within the broader category of IT services for federal agencies.

Value Assessment

Rating: fair

The contract value of $11.2 million for a one-year period for IT support services appears to be within a reasonable range for a large federal agency like the Defense Logistics Agency. However, without specific details on the services rendered and the labor categories involved, a precise value-for-money assessment is difficult. The 'Time and Materials' pricing model, while flexible, carries inherent risks of cost escalation if not meticulously monitored against established benchmarks and labor rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source procurement. This suggests that the Defense Logistics Agency or the General Services Administration identified a specific, unique capability or requirement that only Northrop Grumman Information Technology Inc. could fulfill. Sole-source awards can sometimes indicate a lack of market research or a reliance on incumbent contractors, potentially limiting opportunities for competition and innovation from other vendors.

Taxpayer Impact: Sole-source awards can mean taxpayers may not benefit from the competitive pricing that typically drives down costs in a more open market.

Public Impact

Defense Logistics Agency personnel benefit from continued IT support, ensuring operational readiness. The services provided likely include system maintenance, network support, and potentially software development or integration. The geographic impact is primarily within the Defense Logistics Agency's operational footprint, which is global but managed through key hubs. Workforce implications include the direct employment of IT professionals by Northrop Grumman to fulfill this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Time and Materials contract type poses a risk of cost overruns if not managed stringently.
Lack of competition may stifle innovation and prevent the government from accessing potentially better solutions from other vendors.

Positive Signals

Award to an established contractor like Northrop Grumman suggests a degree of confidence in their ability to deliver.
Continued IT support ensures the smooth functioning of critical defense logistics systems.
The contract was awarded by GSA, which typically has robust procurement processes.

Sector Analysis

Information Technology (IT) services represent a significant portion of federal spending. This contract for automated information system support falls within the IT services sector, which encompasses a wide range of activities from software development and maintenance to network infrastructure and cybersecurity. Federal agencies rely heavily on IT to manage operations, process data, and communicate. Spending in this sector is often driven by modernization efforts, system upgrades, and the need for specialized technical expertise.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor like Northrop Grumman suggests that the primary focus was on acquiring specialized IT services, and opportunities for small businesses may have been limited unless they were part of Northrop Grumman's supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers within the General Services Administration and the program managers within the Defense Logistics Agency. As a sole-source award, there might be heightened scrutiny to ensure the necessity and justification for not pursuing a competitive bid. Transparency would be facilitated through contract databases like FPDS, though detailed performance metrics are often internal.

Related Government Programs

Defense Logistics Agency IT Support Contracts
General Services Administration IT Schedule Contracts
Northrop Grumman Federal Contracts
Automated Information System Support

Risk Flags

Sole-source award requires strong justification.
Time and Materials contract type necessitates vigilant oversight to control costs.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $11.3 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. AUTOMATED INFORMATION SYSTEM SERVICES SUPPORT FOR DEFENSE LOGISTICS AGENCY

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2007-11-30. End: 2008-11-30.

What specific automated information system services were provided under this contract?

The contract data indicates 'AUTOMATED INFORMATION SYSTEM SERVICES SUPPORT' for the Defense Logistics Agency (DLA). While the specific services are not detailed in the provided summary, this typically encompasses a broad range of IT support functions. These could include help desk support, network administration, system maintenance and upgrades, software development and testing, database management, cybersecurity operations, and IT infrastructure management. Given the DLA's role in managing the global supply chain for the Department of Defense, the IT systems supported are likely critical for logistics, inventory management, transportation, and financial operations. The 'Time and Materials' contract type suggests that the scope might have been less defined upfront, allowing for flexibility in addressing evolving IT needs and unforeseen issues that arose during the contract period.

How does the $11.2 million contract value compare to similar IT support contracts for defense agencies?

Comparing the $11.2 million contract value requires context regarding the duration and scope of services. For a one-year contract, this amount is substantial but not extraordinary for supporting a major defense agency like the DLA. Large federal agencies often award multi-year, multi-million dollar contracts for comprehensive IT support. For instance, similar contracts for system integration, network operations, or cybersecurity services can range from tens to hundreds of millions of dollars over several years. The 'Time and Materials' nature of this contract means the final cost is dependent on the hours worked and materials used, making direct comparison to fixed-price contracts challenging. However, it suggests a significant level of IT support was required for the DLA's operations during that period.

What are the primary risks associated with a sole-source 'Time and Materials' contract of this nature?

A sole-source 'Time and Materials' (T&M) contract presents several key risks. Firstly, the sole-source nature means the government did not benefit from competitive bidding, potentially leading to a higher price than if multiple vendors had competed. This lack of competition can also limit the government's access to innovative solutions. Secondly, the T&M pricing model, by its definition, bases payment on the actual labor hours expended and the cost of materials used. This structure carries an inherent risk of cost escalation if the contractor's efficiency is low, if the scope of work expands without adequate controls, or if labor rates are not carefully negotiated and monitored. Without strong government oversight and well-defined task orders, T&M contracts can become significantly more expensive than initially anticipated.

What was Northrop Grumman's track record with the Defense Logistics Agency or similar agencies prior to this award?

Northrop Grumman Information Technology Inc. (now part of Northrop Grumman Corporation) has a long history of providing IT and defense-related services to various U.S. government agencies, including the Department of Defense and its components like the Defense Logistics Agency. Prior to this specific $11.2 million contract awarded in late 2007, Northrop Grumman held numerous contracts for IT support, system integration, and logistics management. Their extensive experience and established presence within the defense sector suggest a known capability and a potentially existing relationship with the DLA, which could have influenced the sole-source decision. Agencies often rely on incumbent contractors with proven performance records for critical systems support to ensure continuity and minimize disruption.

How does this contract fit into the broader context of federal IT spending for defense logistics?

This $11.2 million contract represents a component of the substantial federal IT spending dedicated to defense logistics. The Defense Logistics Agency is a critical entity responsible for ensuring that military services have the necessary supplies and services. Its operations rely heavily on complex, integrated information systems for inventory management, transportation, procurement, and financial tracking. Federal IT spending in this area is driven by the need for secure, reliable, and efficient systems that can support global military operations. Contracts like this one, focused on 'Automated Information System Services Support,' are essential for maintaining and upgrading these vital systems, ensuring that the DLA can effectively fulfill its mission. This spending aligns with the government's ongoing investment in modernizing defense infrastructure and enhancing operational capabilities through technology.

Contractor Details

Parent Company: Titan II Inc. (UEI: 016435559)

Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,282,514

Exercised Options: $11,282,514

Current Obligation: $11,282,514

Parent Contract

Parent Award PIID: GS09K99BHD0009

IDV Type: GWAC

Timeline