Northrop Grumman received over $26.7M for IT helpdesk support from GSA

Contract Overview

Contract Amount: $26,752,036 ($26.8M)

Contractor: Northrop Grumman Information Technology Inc

Awarding Agency: General Services Administration

Start Date: 2003-10-29

End Date: 2005-03-31

Contract Duration: 519 days

Daily Burn Rate: $51.5K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SUPPORT FOR THE HELDESK

Place of Performance

Location: VIRGINIA

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $26.8 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: SUPPORT FOR THE HELDESK Key points: 1. Contract awarded on a non-competitive basis, raising questions about price discovery. 2. The contract duration of 519 days suggests a need for ongoing support services. 3. Awarded under a Time and Materials pricing structure, which can increase costs if not managed carefully. 4. The NAICS code 541511 indicates custom computer programming services, but the description is 'SUPPORT FOR THE HELDESK'. 5. The small business flag is false, indicating the prime contractor is not a small business. 6. The contract was awarded by the General Services Administration (GSA), a common contracting agency.

Value Assessment

Rating: questionable

The contract's value of over $26.7 million for IT helpdesk support over approximately 1.5 years warrants scrutiny. Without a competitive bidding process, it is difficult to benchmark the value for money. The Time and Materials (T&M) pricing structure, while flexible, can lead to cost overruns if not closely monitored. Comparing this to similar IT support contracts, especially those awarded competitively, would be essential to determine if the pricing is fair and reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order. This means that the agency did not solicit offers from multiple potential contractors. The lack of competition limits the agency's ability to explore different solutions and potentially secure more favorable pricing. It also suggests that there may have been specific circumstances or justifications for awarding the contract directly to Northrop Grumman Information Technology Inc.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from the cost savings that can arise from a competitive bidding process, potentially leading to a higher overall cost for the services.

Public Impact

Federal employees and potentially other government personnel benefit from IT helpdesk support. The services delivered are crucial for maintaining the operational efficiency of IT systems. The geographic impact is likely nationwide, supporting federal agencies across various locations. The contract supports the IT workforce within Northrop Grumman and potentially indirectly supports federal IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potential savings.
Time and Materials contract type carries inherent risk of cost escalation.
Discrepancy between NAICS code description and service description requires clarification.
Lack of transparency in the procurement process due to sole-source award.

Positive Signals

Contract addresses a critical need for IT support within the federal government.
Northrop Grumman is a large, established contractor with significant experience in IT services.
The contract was awarded by GSA, which typically has robust procurement processes.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT support services. The market for IT support and custom computer programming is substantial within the federal government, with agencies consistently requiring these services to maintain their complex systems. Benchmarking this contract's value would involve comparing it to other IT support contracts awarded by GSA or other agencies, considering factors like service scope, duration, and pricing models.

Small Business Impact

The contract indicates that small business participation was not a primary consideration, as the 'sb' flag is false and the award was non-competitive. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the primary contractor, Northrop Grumman, is expected to perform the majority of the work, with limited direct benefit to the small business ecosystem through this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA) contracting officers and program managers. Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the non-competitive nature of the award, but contract award data is generally made public through federal procurement databases.

Related Government Programs

IT Helpdesk Services
Custom Computer Programming Services
General Services Administration Contracts
Northrop Grumman IT Contracts

Risk Flags

Non-competitive award
Time and Materials pricing
Potential scope mismatch (NAICS vs. description)

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $26.8 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. SUPPORT FOR THE HELDESK

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 $26.8 million.

What is the period of performance?

Start: 2003-10-29. End: 2005-03-31.

What specific IT helpdesk services were provided under this contract?

The contract description states 'SUPPORT FOR THE HELDESK' and is categorized under NAICS code 541511 (Custom Computer Programming Services). While the NAICS code suggests custom programming, the service description points to IT support. This likely encompasses a range of services such as incident resolution, user support, troubleshooting, and potentially basic system maintenance for federal IT infrastructure. The exact scope would be detailed in the contract's statement of work, which is not provided here but would typically outline the specific technologies supported, service level agreements (SLAs), and operating hours.

Why was this contract awarded on a non-competitive basis?

The data indicates this was a 'NON-COMPETITIVE DELIVERY ORDER'. Agencies typically award contracts non-competitively under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source can satisfy the agency's needs (e.g., unique capabilities, urgent needs, or follow-on work to a sole-source prime contract). Without further documentation, the precise justification for this sole-source award to Northrop Grumman Information Technology Inc. remains unclear but would have been documented by the GSA at the time of award.

What are the implications of the Time and Materials (T&M) pricing structure for this contract?

A Time and Materials (T&M) pricing structure means the government pays the contractor for the actual labor hours expended at specified hourly rates, plus the cost of materials used. For taxpayers, T&M contracts carry a higher risk of cost escalation compared to fixed-price contracts, as the total cost is not predetermined. Effective management, close monitoring of hours, and robust oversight are crucial to control costs and ensure value for money. The government must ensure that the T&M contract includes appropriate ceilings and that the contractor's effort is efficient and necessary.

How does the contract's duration and value compare to similar IT support contracts?

The contract spanned approximately 1.5 years (519 days) with a value exceeding $26.7 million. This translates to an average monthly burn rate of roughly $1.7 million. Without access to a comprehensive database of comparable federal IT support contracts, a precise benchmark is difficult. However, for a non-competitive T&M contract of this duration and value, it suggests a significant scope of support, potentially involving a large number of users or complex systems. A competitive analysis would be needed to determine if this rate is aligned with market prices for similar services.

What is the significance of the NAICS code 541511 in relation to the service description?

The North American Industry Classification System (NAICS) code 541511 is defined as 'Custom Computer Programming Services'. This typically involves designing, developing, and implementing software solutions tailored to a client's specific needs. However, the contract description is 'SUPPORT FOR THE HELDESK'. This discrepancy could mean that the helpdesk services provided involve custom-developed tools or scripts, or that the classification was broadly applied. It is also possible that the helpdesk function is integrated with or supports custom-developed applications, leading to this classification.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

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

Address: 2411 DULLES CORNER PARK #, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $27,211,998

Exercised Options: $27,211,998

Current Obligation: $26,752,036

Parent Contract

Parent Award PIID: GS35F4506G

IDV Type: FSS

Timeline