DHS awards $18.4M for custom computer programming, raising questions about value and competition

Contract Overview

Contract Amount: $18,392,117 ($18.4M)

Contractor: Northrop Grumman Information Technology Inc

Awarding Agency: Department of Homeland Security

Start Date: 2005-11-09

End Date: 2005-07-04

Pricing Type: NOT REPORTED

Sector: IT

Plain-Language Summary

Department of Homeland Security obligated $18.4 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: Key points: 1. Contract value of $18.4M for programming services warrants scrutiny for cost-effectiveness. 2. Limited competition dynamics may have impacted pricing and overall value for taxpayers. 3. Absence of specific performance metrics or risk indicators requires further investigation. 4. Contract awarded to a single entity suggests potential for price inflation. 5. The nature of custom programming services can obscure true value and efficiency. 6. Benchmarking against similar contracts is crucial to assess fair pricing.

Value Assessment

Rating: questionable

The contract's value of $18.4 million for custom computer programming services lacks sufficient detail for a robust value assessment. Without clear performance metrics or comparison points, it's difficult to determine if this represents a fair price for the services rendered. Benchmarking against similar custom programming contracts within the federal government or private sector would be necessary to ascertain if the pricing is competitive and if the government is receiving good value for its investment. The lack of transparency in pricing structure further complicates this assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not explicitly detailed in the provided data. If this was a sole-source or limited competition award, it could indicate a lack of market research or a specific need that only one contractor could fulfill. This scenario often leads to higher prices and reduced innovation. Conversely, if it was competed broadly and only one bid was received, it might suggest market limitations or issues with the solicitation process. Further information on the procurement method is needed to understand the implications.

Taxpayer Impact: A lack of robust competition can mean taxpayers pay more than necessary for services. It also limits opportunities for new or smaller businesses to compete for government work.

Public Impact

The primary beneficiary is the contractor, NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC, which receives significant revenue. The services delivered are custom computer programming, likely supporting specific operational needs of U.S. Immigration and Customs Enforcement. The geographic impact is primarily within the scope of ICE operations, potentially supporting federal law enforcement and immigration functions. Workforce implications may include the utilization of specialized IT professionals employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to gauge effectiveness.
Limited competition data raises concerns about price discovery and potential overpayment.
The broad nature of 'custom computer programming' can mask inefficiencies.
Contract duration and specific deliverables are not clearly defined, increasing risk.
Absence of small business subcontracting data limits visibility into broader economic impact.

Positive Signals

Award to a large, established IT firm suggests potential for reliable service delivery.
The contract supports critical functions within U.S. Immigration and Customs Enforcement.
The existence of a contract indicates a recognized need for these IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The federal IT market is vast, with significant spending allocated annually to software development, system integration, and IT support. Custom programming is essential for agencies requiring tailored solutions not met by off-the-shelf software. Benchmarking this contract's value against the average cost of similar custom programming projects within the federal government, which can range widely based on complexity and duration, is important for assessing its fiscal responsibility.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it offer details on subcontracting opportunities. If this was not competed with small businesses in mind, it represents a missed opportunity to engage the small business sector. The absence of subcontracting plans means there is no clear mechanism to ensure small businesses benefit from this large contract, potentially limiting their access to federal dollars and growth.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. Standard federal contracting procedures would typically involve contract officers, program managers, and potentially an Inspector General's office to ensure compliance and performance. However, without specific information on reporting requirements, performance reviews, or audit rights, the extent of oversight and accountability remains unclear. Transparency would be enhanced by public access to performance reports and any associated audits.

Related Government Programs

Custom Computer Programming Services
IT Services
Software Development
Department of Homeland Security IT Contracts
Immigration and Customs Enforcement Technology

Risk Flags

Lack of competition data
Unclear performance metrics
Limited value assessment details
Potential for cost overruns
Insufficient small business participation visibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.4 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2005-11-09. End: 2005-07-04.

What specific custom computer programming services were delivered under this contract?

The provided data classifies this contract under NAICS code 541511 for 'Custom Computer Programming Services.' However, it does not specify the exact nature of these services. This could range from developing new software applications, modifying existing systems, database programming, to providing specialized IT consulting for software solutions. Without further details from the contract's statement of work or performance reports, it is impossible to ascertain the precise technical tasks undertaken. Understanding the specific deliverables is crucial for evaluating the contract's necessity, effectiveness, and value for money.

How does the $18.4 million contract value compare to similar custom programming contracts awarded by DHS or other agencies?

Benchmarking the $18.4 million contract value requires access to a broader dataset of federal IT contracts, specifically those for custom computer programming services (NAICS 541511) awarded around the same period (2005). Factors such as contract duration, complexity of requirements, and the specific technologies involved significantly influence pricing. Generally, large-scale custom development projects can easily reach millions of dollars. However, without comparative data on the scope and deliverables of similar contracts, it's challenging to definitively state whether $18.4 million represents a competitive price or an outlier. A thorough analysis would involve comparing hourly rates, project milestones, and overall project outcomes against peer contracts.

What were the key performance indicators (KPIs) and how was contractor performance measured?

The provided data does not include information on Key Performance Indicators (KPIs) or the specific methods used to measure the performance of NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC under this contract. In federal contracting, well-defined KPIs are essential for ensuring that services meet agency needs and that the contractor is held accountable. Typical KPIs for custom programming might include adherence to project timelines, code quality standards, successful integration of software, user satisfaction, and bug resolution rates. The absence of this information suggests a potential gap in contract oversight and performance management, making it difficult to assess the effectiveness and efficiency of the services provided.

What is the track record of NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC with federal IT contracts, particularly with DHS?

NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC is a large and established government contractor with a significant history of securing federal IT contracts across various agencies, including the Department of Homeland Security (DHS). While the provided data focuses on a single contract, the company's broader track record generally indicates experience in complex IT solutions. However, the success and value of past performance can vary significantly between contracts. A comprehensive assessment would require reviewing multiple contracts awarded to this entity, examining their performance ratings, any past performance issues or disputes, and their overall contribution to agency missions. This specific contract's value and duration suggest a substantial engagement.

Were there any identified risks associated with this contract, and how were they mitigated?

The provided data does not explicitly list any identified risks associated with this contract or detail the mitigation strategies employed. Federal contracts, especially for complex IT services, inherently carry risks such as cost overruns, schedule delays, technical challenges, and performance shortfalls. Effective contract management involves proactively identifying these risks and developing plans to address them. Without specific risk registers or mitigation plans documented, it is difficult to assess the level of risk management applied to this particular procurement. Standard mitigation might include phased delivery, rigorous testing protocols, and clear change control processes.

What is the historical spending trend for custom computer programming services at U.S. Immigration and Customs Enforcement?

The provided data snippet focuses on a single contract awarded in 2005. To understand the historical spending trend for custom computer programming services at U.S. Immigration and Customs Enforcement (ICE), a comprehensive analysis of ICE's contract data over multiple fiscal years would be necessary. This would involve querying federal procurement databases (like FPDS or USASpending) for all contracts awarded under NAICS code 541511 (and potentially related IT service codes) to ICE. Analyzing this data would reveal patterns in spending levels, identify major contractors, and show whether spending on custom programming has increased, decreased, or remained stable over time, indicating evolving IT needs or strategic shifts within ICE.

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

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

Parent Contract

Parent Award PIID: HSCEOP05A00001

IDV Type: BPA

Timeline