DHS Awards $37.4M Custom Computer Programming Services Contract to Northrop Grumman

Contract Overview

Contract Amount: $37,385,922 ($37.4M)

Contractor: Northrop Grumman Information Technology Inc

Awarding Agency: Department of Homeland Security

Start Date: 2006-02-01

End Date: 2006-09-12

Contract Duration: 223 days

Daily Burn Rate: $167.7K/day

Competition Type: NOT COMPETED

Pricing Type: NOT REPORTED

Sector: IT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $37.4 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: Key points: 1. Significant award value of $37.4 million for programming services. 2. Contract awarded to a large, established defense contractor. 3. Lack of competition raises potential value and efficiency concerns. 4. Spending concentrated in IT services sector.

Value Assessment

Rating: questionable

The award value of $37.4 million for custom computer programming services is substantial. Without competitive bidding, it is difficult to assess if this price represents fair market value compared to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited competition approach, likely through a Blanket Purchase Agreement (BPA). This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition suggests potential for overspending, impacting taxpayer value.

Public Impact

Taxpayers may not have received the best possible price due to the absence of competitive bidding. The award to a single large contractor could limit opportunities for smaller, specialized firms. Transparency in pricing and service delivery is reduced without a competitive process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
Limited transparency

Positive Signals

Award to established contractor
Clear service category

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming. Spending in this area is consistently high across federal agencies, but competitive sourcing is crucial for cost-effectiveness.

Small Business Impact

The contract was not awarded to a small business, and the lack of competition further limits potential opportunities for small businesses in this procurement.

Oversight & Accountability

The limited competition and lack of reported details on the BPA's justification warrant further oversight to ensure fair pricing and effective service delivery.

Related Government Programs

Custom Computer Programming Services
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Lack of competitive bidding
Potential for non-competitive pricing
Limited transparency in award justification
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37.4 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 $37.4 million.

What is the period of performance?

Start: 2006-02-01. End: 2006-09-12.

What was the justification for limiting competition on this $37.4 million contract?

The justification for limiting competition on this $37.4 million contract is not provided in the data. Typically, limited competition is used when only one source can fulfill the requirement, or in specific circumstances like follow-on work. Without this information, it's impossible to assess if the government received the best value or if alternative sources were overlooked.

How does the lack of competition impact the risk of cost overruns?

The lack of competition significantly increases the risk of cost overruns. Without competing bids, the contractor has less incentive to offer the most competitive price. This can lead to inflated costs and potentially inefficient resource allocation, as the government lacks a benchmark to ensure it is paying a fair market rate for the services.

What is the potential effectiveness of custom computer programming services procured without competition?

The effectiveness of custom computer programming services procured without competition can be variable. While the awardee, Northrop Grumman, is a large and experienced contractor, the absence of competition means there's no external validation of their proposed solution's efficiency or cost-effectiveness compared to potential alternatives. The government relies solely on the contractor's capabilities and internal oversight.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: NOT REPORTED (NO)

Evaluated Preference: NONE

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