Coast Guard Awards Northrop Grumman $29.8M for NAIS Increment 2, Phase 1
Contract Overview
Contract Amount: $29,797,879 ($29.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2008-12-22
End Date: 2016-12-28
Contract Duration: 2,928 days
Daily Burn Rate: $10.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)
Sector: IT
Official Description: REQUEST FOR PROPOSAL HSCG23-08-R-ADA011, NAIS INCREMENT 2, PHASE 1
Place of Performance
Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23602
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $29.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: REQUEST FOR PROPOSAL HSCG23-08-R-ADA011, NAIS INCREMENT 2, PHASE 1 Key points: 1. Contract awarded to a single, large incumbent provider. 2. Significant contract duration of nearly 8 years. 3. High potential for cost overruns given the long timeline. 4. Information Services sector sees substantial government investment.
Value Assessment
Rating: questionable
The award amount of $29.8 million over nearly 8 years suggests a high per-unit cost, especially for information services. Benchmarking is difficult without specific deliverables, but the long duration raises concerns about price escalation and value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the long-term nature and potential for follow-on work could limit future competition.
Taxpayer Impact: Taxpayer funds are committed to a long-term information services project. Value for money will depend on effective project execution and management over the contract's lifespan.
Public Impact
Modernization of critical Coast Guard command and control systems. Impacts operational efficiency and data management for maritime security. Potential for long-term reliance on a single vendor for essential services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration increases risk of cost overruns.
- Potential for vendor lock-in.
- Lack of clear performance metrics in provided data.
- Limited visibility into specific service deliverables.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security functions.
- Incumbent provider likely has institutional knowledge.
Sector Analysis
This contract falls within the 'All Other Information Services' category, a broad sector encompassing IT support, data processing, and information management. Spending in this sector is consistently high across federal agencies for modernization and operational needs.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in the provided data, suggesting limited opportunities for small businesses on this specific award.
Oversight & Accountability
The long duration of this contract necessitates robust oversight from the Department of Homeland Security and the U.S. Coast Guard to ensure performance, manage costs, and mitigate risks. Regular reviews and performance assessments are crucial.
Related Government Programs
- All Other Information Services
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Long contract duration (nearly 8 years).
- Potential for cost overruns.
- Limited visibility into specific deliverables and performance metrics.
- Lack of small business participation indicated.
- Risk of vendor lock-in for critical IT services.
Tags
all-other-information-services, department-of-homeland-security, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $29.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. REQUEST FOR PROPOSAL HSCG23-08-R-ADA011, NAIS INCREMENT 2, PHASE 1
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $29.8 million.
What is the period of performance?
Start: 2008-12-22. End: 2016-12-28.
What specific services and deliverables are included in NAIS Increment 2, Phase 1, and how do they align with current Coast Guard operational needs?
The provided data lacks specifics on the deliverables for NAIS Increment 2, Phase 1. Understanding the exact services, such as software development, system integration, or data analytics, and their alignment with evolving Coast Guard requirements is crucial for assessing value. Without this detail, it's difficult to determine if the $29.8 million investment is strategically sound and addresses current operational gaps effectively.
What mechanisms are in place to manage cost and performance risks over the nearly 8-year contract duration?
Given the extensive contract length, robust risk management strategies are essential. This includes clear performance metrics, phased payments tied to milestones, regular performance reviews, and contingency plans for potential technical challenges or scope changes. The absence of detailed oversight information raises concerns about proactive risk mitigation and ensuring the government receives optimal value throughout the contract's lifecycle.
How will the success and effectiveness of the NAIS Increment 2, Phase 1 be measured and evaluated post-award?
Measuring the effectiveness of this information services contract requires clearly defined Key Performance Indicators (KPIs) and objective evaluation criteria. These should focus on improvements in operational efficiency, data accuracy, system reliability, and user satisfaction within the Coast Guard. Without established metrics and a plan for post-award evaluation, it is challenging to ascertain the true return on investment and the overall success of the program.
Industry Classification
NAICS: Information › Other Information Services › All Other Information Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HSCG23-08-R-ADA011
Offers Received: 6
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 2340 DULLES CORNER BOULEVARD, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $70,153,232
Exercised Options: $29,797,879
Current Obligation: $29,797,879
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-12-22
Current End Date: 2016-12-28
Potential End Date: 2016-12-28 00:00:00
Last Modified: 2025-04-22
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