GSA's $28M Northrop Grumman Contract for Equipment Repair Data Migration Support Services
Contract Overview
Contract Amount: $28,079,837 ($28.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: General Services Administration
Start Date: 2012-08-18
End Date: 2016-11-04
Contract Duration: 1,539 days
Daily Burn Rate: $18.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: EQUIPMENT REPAIR SYSTEMS DATA MIGRATION PREPARATION SUPPORT SERVICES FOLLOW ON
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
General Services Administration obligated $28.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: EQUIPMENT REPAIR SYSTEMS DATA MIGRATION PREPARATION SUPPORT SERVICES FOLLOW ON Key points: 1. Contract awarded to Northrop Grumman Systems Corporation for $28.1M. 2. Services fall under Process, Physical Distribution, and Logistics Consulting. 3. Full and open competition was utilized. 4. Contract duration was 1539 days. 5. No small business participation noted.
Value Assessment
Rating: fair
The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. The duration of nearly four years suggests a potentially complex or ongoing need for these services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a broad search for qualified vendors. However, the Time and Materials pricing structure may limit price discovery and potentially lead to higher costs compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds were used for consulting services related to data migration and equipment repair support. The Time and Materials nature of the contract warrants careful oversight to ensure cost-effectiveness.
Public Impact
Ensures continuity of essential equipment repair systems. Supports modernization efforts through data migration. Potential for improved operational efficiency in logistics. Government reliance on a single contractor for a significant period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can inflate costs.
- Lack of small business participation.
- Long contract duration without clear cost controls.
Positive Signals
- Full and open competition utilized.
- Services support critical infrastructure.
- Awarded by GSA, a central procurement agency.
Sector Analysis
This contract falls within the professional services sector, specifically logistics consulting. Benchmarks for similar data migration and support services can vary widely based on complexity and duration, but a $28M spend over four years suggests a substantial undertaking.
Small Business Impact
The contract data indicates no small business participation. This suggests that the prime contractor, Northrop Grumman, likely performed all work or subcontracted to large businesses, missing opportunities to engage smaller, specialized firms.
Oversight & Accountability
The use of Time and Materials pricing necessitates robust oversight from the General Services Administration to monitor hours, rates, and the necessity of services to prevent cost creep and ensure value for taxpayer money.
Related Government Programs
- Process, Physical Distribution, and Logistics Consulting Services
- 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.
- Long contract duration without explicit cost control measures.
- Risk of vendor lock-in.
- Need for robust government oversight.
Tags
process-physical-distribution-and-logist, general-services-administration, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $28.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. EQUIPMENT REPAIR SYSTEMS DATA MIGRATION PREPARATION SUPPORT SERVICES FOLLOW ON
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 $28.1 million.
What is the period of performance?
Start: 2012-08-18. End: 2016-11-04.
What was the specific nature of the 'equipment repair systems data migration preparation' and how did the Time and Materials contract structure ensure cost-effectiveness for this complex task?
The data migration likely involved transferring critical information from legacy systems to newer platforms to support equipment repair operations. The Time and Materials (T&M) structure, while offering flexibility, requires stringent oversight. Agencies must meticulously track labor hours, verify the necessity of each task, and ensure billing rates are fair. Without this diligence, T&M contracts can exceed initial estimates significantly, potentially leading to poor value for the government.
Given the full and open competition, why did this substantial contract not include provisions for small business subcontracting, and what is the potential impact on innovation and competition?
The absence of small business participation might stem from the prime contractor's established relationships or the perceived complexity of the work, leading them to rely on their own resources or other large firms. This oversight misses opportunities to leverage the agility and specialized expertise of small businesses, potentially limiting innovation and reducing the competitive landscape for future similar contracts.
With a contract duration of 1539 days (over 4 years), what mechanisms were in place to ensure the services remained relevant and effective, and to prevent vendor lock-in or scope creep?
Long-term contracts require built-in flexibility and regular performance reviews. Mechanisms like phased delivery, clear performance metrics, and periodic re-evaluation of needs are crucial. The government should have had provisions for contract modifications or termination if the services became obsolete or less effective. Preventing vendor lock-in involves ensuring clear deliverables and potentially encouraging knowledge transfer to government personnel.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics 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: ID05120102
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
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: $47,267,322
Exercised Options: $36,302,704
Current Obligation: $28,079,837
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS10F0162L
IDV Type: FSS
Timeline
Start Date: 2012-08-18
Current End Date: 2016-11-04
Potential End Date: 2016-11-04 00:00:00
Last Modified: 2025-01-17
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