GSA awards Northrop Grumman $67.9M for Defense Production Act support services
Contract Overview
Contract Amount: $67,926,312 ($67.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: General Services Administration
Start Date: 2010-02-01
End Date: 2015-03-31
Contract Duration: 1,884 days
Daily Burn Rate: $36.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: STRATEGIC PLANNING, BUSINESS ANALYSIS AND PROGRAM MANAGEMENT SUPPORT SERVICES FOR IMPLEMENTATION OF THE DEFENSE PRODUCTION ACT, TITLE III, PROGRAMS.
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
General Services Administration obligated $67.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: STRATEGIC PLANNING, BUSINESS ANALYSIS AND PROGRAM MANAGEMENT SUPPORT SERVICES FOR IMPLEMENTATION OF THE DEFENSE PRODUCTION ACT, TITLE III, PROGRAMS. Key points: 1. Contract awarded to a large, established defense contractor. 2. Services support critical Defense Production Act programs. 3. Firm Fixed Price contract type may limit cost overruns. 4. Full and open competition was utilized.
Value Assessment
Rating: good
The contract value of $67.9M over 5 years represents a significant investment. Pricing is considered fair given the scope and duration, though specific benchmarks are unavailable without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being used to procure essential support services for national security programs.
Public Impact
Supports critical national security initiatives through the Defense Production Act. Ensures continuity and expertise in program management for vital government functions. Leverages private sector expertise for complex government program implementation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is substantial, requiring ongoing monitoring.
- Reliance on a single contractor for critical support.
Positive Signals
- Awarded via full and open competition.
- Firm Fixed Price contract type.
Sector Analysis
This contract falls under management consulting services, a common area of federal spending. Benchmarks for similar large-scale program management support contracts vary widely based on scope and agency.
Small Business Impact
The contract was not set aside for small businesses, indicating that large prime contractors were expected to compete and perform the majority of the work.
Oversight & Accountability
Oversight is managed by the General Services Administration (GSA) Federal Acquisition Service. The firm fixed price structure provides some cost control, but performance monitoring is crucial.
Related Government Programs
- Administrative Management and General Management Consulting Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for scope creep.
- Contractor performance variability.
- Long-term reliance on a single vendor.
- Adequacy of competition for future needs.
Tags
administrative-management-and-general-ma, general-services-administration, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $67.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. STRATEGIC PLANNING, BUSINESS ANALYSIS AND PROGRAM MANAGEMENT SUPPORT SERVICES FOR IMPLEMENTATION OF THE DEFENSE PRODUCTION ACT, TITLE III, PROGRAMS.
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 $67.9 million.
What is the period of performance?
Start: 2010-02-01. End: 2015-03-31.
What specific metrics are used to evaluate the effectiveness of Northrop Grumman's support services in implementing Defense Production Act programs?
Effectiveness is likely measured through key performance indicators (KPIs) related to program milestones, budget adherence, and successful implementation of DPA objectives. The government would track deliverables, contractor responsiveness, and overall contribution to program goals. Specific metrics would be detailed in the contract's performance work statement.
How does the $67.9M contract value compare to similar program management support contracts for defense initiatives?
Without specific details on the scope and complexity of the DPA programs supported, a direct comparison is difficult. However, $67.9M over five years for strategic planning, business analysis, and program management suggests a substantial and complex undertaking, potentially in line with other large-scale defense support contracts.
What are the primary risks associated with this contract, and how are they mitigated?
Key risks include potential cost overruns (mitigated by FFP), contractor performance issues (mitigated by oversight and KPIs), and reliance on a single entity (mitigated by robust contract management and potential for future competition). Changes in program requirements could also pose a risk.
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: 5TP57100194
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 4807 STONECROFT BLVD, CHANTILLY, VA, 20151
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: $73,950,569
Exercised Options: $73,950,569
Current Obligation: $67,926,312
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F9797H
IDV Type: FSS
Timeline
Start Date: 2010-02-01
Current End Date: 2015-03-31
Potential End Date: 2015-03-31 00:00:00
Last Modified: 2021-12-05
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