DLA IT Support Services Contract Awarded to Northrop Grumman for $35.7M
Contract Overview
Contract Amount: $35,688,237 ($35.7M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: General Services Administration
Start Date: 2008-04-28
End Date: 2013-04-30
Contract Duration: 1,828 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IT SUPPORT SERVICES FOR DLA COLUMBUS
Place of Performance
Location: COLUMBUS, FRANKLIN County, OHIO, 43216
State: Ohio Government Spending
Plain-Language Summary
General Services Administration obligated $35.7 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: IT SUPPORT SERVICES FOR DLA COLUMBUS Key points: 1. Contract value of $35.7 million over 5 years. 2. Awarded to Northrop Grumman Information Technology Inc. 3. Procured via Full and Open Competition. 4. Significant IT support services for DLA Columbus.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure can lead to cost overruns if not managed closely. Benchmarking against similar IT support contracts is difficult without detailed scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under Full and Open Competition, suggesting a competitive bidding process. However, the Time and Materials (T&M) pricing type may limit price discovery and incentivize increased labor hours.
Taxpayer Impact: Taxpayers may face higher costs due to the T&M pricing, which lacks a fixed ceiling and can escalate with labor hours billed.
Public Impact
Ensures critical IT infrastructure and support for the Defense Logistics Agency (DLA) operations in Columbus, Ohio. Supports military readiness and logistical efficiency through reliable technology services. Potential for cost inefficiencies due to Time and Materials contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to cost overruns.
- Lack of detailed scope of work for benchmarking.
- No small business participation noted.
Positive Signals
- Full and Open Competition ensures a competitive process.
- Supports critical DLA mission functions.
Sector Analysis
This contract falls within the Information Technology sector, specifically IT support services. Spending benchmarks for similar DLA IT support contracts vary widely based on scope and duration, but $35.7M over five years represents a moderate investment.
Small Business Impact
The data indicates no small business participation in this contract. Efforts should be made to ensure future IT support contracts include opportunities for small businesses to compete and contribute.
Oversight & Accountability
Oversight of the Time and Materials contract is crucial to ensure efficient use of funds and prevent cost creep. Regular performance reviews and audits are necessary to maintain accountability.
Related Government Programs
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of small business participation.
- Limited price certainty over the contract's life.
- Need for robust oversight to manage T&M costs.
Tags
general-services-administration, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $35.7 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. IT SUPPORT SERVICES FOR DLA COLUMBUS
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 $35.7 million.
What is the period of performance?
Start: 2008-04-28. End: 2013-04-30.
What specific IT support services were included in this contract, and how do they align with DLA's mission requirements?
The contract provided IT support services for DLA Columbus. While the exact services are not detailed, they likely encompass network management, help desk support, system maintenance, and potentially cybersecurity functions essential for DLA's logistical operations and supply chain management.
How effectively did the Full and Open Competition process ensure competitive pricing given the Time and Materials contract type?
While Full and Open Competition is a strong indicator of a competitive process, the Time and Materials (T&M) pricing structure inherently limits price certainty. The competition likely focused on technical approach and past performance, but the T&M nature means the final cost is driven by hours worked, potentially reducing the long-term price advantage gained from initial competition.
What is the projected taxpayer impact of this contract, considering its duration and pricing structure?
The projected taxpayer impact is moderate, with a total value of $35.7 million over approximately five years. However, the Time and Materials pricing introduces a risk of cost escalation beyond initial projections, potentially increasing the final taxpayer burden if labor hours are not efficiently managed or if scope creep occurs.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: R3083622
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 7575 COLSHIRE DR, MCLEAN, VA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $39,617,392
Exercised Options: $39,617,369
Current Obligation: $35,688,237
Parent Contract
Parent Award PIID: GS09K99BHD0009
IDV Type: GWAC
Timeline
Start Date: 2008-04-28
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2014-05-22
More Contracts from Northrop Grumman Information Technology Inc
- Federal Contract — $442.4M (Department of Defense)
- Services--Dko Concept of Operations — $441.3M (Department of Defense)
- 200510!500520!2100!w912su!aca, Nrcc - Mission Division !W911S004C0006 !A!N! !Y! !p00006!20050707!20050930!064679264!064679264!016435559!n!northrop Grumman Information T!2411 Dulles Corner Park !herndon !va!20171!23950!103!20!fort Leavenworth !leavenworth !kansas !+000019492204!n!n!000000000000!r499!other Professional Services !S1 !services !000 !* !541519!E! !3! ! !B! ! !20200930!B! ! !A! !a!u!r!2!002!b! !C!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !W55C6Q!0001! ! — $431.7M (Department of Defense)
- Gccs-J System Engineering Igf::ot::igf — $197.7M (Department of Defense)
- Migrated Data Value Unknown — $103.0M (Department of Defense)
View all Northrop Grumman Information Technology Inc federal contracts →
Other General Services Administration Contracts
- Software Life Cycle Development — $1.4B (Science Applications International Corporation)
- Task Order (TO) 47qfca21f0018 IS Hereby Awarded to Booz Allen Hamilton, Inc. (BAH) to Provide Enterprise Level Data to the Ousd(c), and ITS Strategic Partners (I.E., DOD Fourth Estate, DOD Departments, and IC Community) — $1.4B (Booz Allen Hamilton Inc)
- Federal Contract — $1.2B (Booz Allen Hamilton Inc)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (Science Applications International Corporation)
- Task Order Award — $1.1B (Booz Allen Hamilton Inc)