Northrop Grumman awarded $88M contract for Defense Manpower Data Center support, highlighting IT services
Contract Overview
Contract Amount: $88,182,591 ($88.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of the Interior
Start Date: 2010-09-13
End Date: 2015-09-12
Contract Duration: 1,825 days
Daily Burn Rate: $48.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 21
Pricing Type: LABOR HOURS
Sector: IT
Official Description: INFORMATION ANALYSIS SUPPORT FOR THE DEFENSE MANPOWER DATA CENTER
Place of Performance
Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955
Plain-Language Summary
Department of the Interior obligated $88.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: INFORMATION ANALYSIS SUPPORT FOR THE DEFENSE MANPOWER DATA CENTER Key points: 1. Contract value of $88.2 million over five years indicates significant investment in IT support. 2. Full and open competition suggests a robust bidding process, potentially leading to better pricing. 3. The contract's duration of 1825 days (5 years) allows for sustained support and knowledge retention. 4. Services fall under Computer Systems Design, a critical sector for defense operations. 5. The award to a large, established contractor like Northrop Grumman suggests a focus on reliability and experience. 6. The contract's primary performance location is California, a hub for defense and technology industries.
Value Assessment
Rating: good
The contract value of $88.2 million over five years for IT support services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT support contracts for defense agencies would provide a more precise value-for-money assessment. The pricing structure, likely based on labor hours, needs careful monitoring to ensure efficiency and prevent cost overruns. Without specific per-unit cost data, a definitive value assessment is challenging, but the overall investment aligns with the complexity of managing defense manpower data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 21 bids suggests a highly competitive environment. This level of competition is generally favorable for the government, as it encourages multiple contractors to offer their best pricing and technical solutions to win the award. The wide range of bidders likely contributed to price discovery and ensured the government received competitive offers.
Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down the overall cost of the services provided and ensured the government secured a high-quality solution at a competitive price.
Public Impact
The primary beneficiary is the Defense Manpower Data Center (DMDC), which receives essential IT support. Services delivered include computer systems design and related support, crucial for managing defense personnel data. The geographic impact is concentrated in California, where the contractor will likely perform most of the work. Workforce implications include the potential for skilled IT professionals to be employed by Northrop Grumman or its subcontractors to fulfill this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if specific proprietary systems are developed or heavily relied upon.
- Risk of cost escalation if labor hour rates are not effectively managed over the contract's five-year term.
- Dependence on a single large contractor could limit flexibility in adapting to future technological shifts.
Positive Signals
- Award to an experienced contractor like Northrop Grumman suggests a high likelihood of successful service delivery.
- Full and open competition indicates a thorough vetting process and competitive pricing.
- The long-term nature of the contract allows for deep integration and understanding of DMDC's specific needs.
Sector Analysis
The IT services sector, particularly within defense, is characterized by high demand for specialized skills in data management, cybersecurity, and systems integration. This contract for computer systems design services fits within the broader market for IT support to government agencies, which is a significant portion of federal IT spending. Comparable spending benchmarks for similar large-scale IT support contracts can vary widely based on scope, but an $88 million, five-year award suggests a substantial and complex requirement.
Small Business Impact
This contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Northrop Grumman is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors, depending on the specific requirements and subcontracting plans outlined in the proposal. The extent of small business participation will depend on Northrop Grumman's subcontracting strategy and the availability of qualified small business vendors for specialized IT services.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Interior, overseeing the services provided to the Defense Manpower Data Center. Accountability measures would be embedded in the contract's performance work statement, with regular reviews and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Defense Manpower Data Center Operations
- Department of Defense IT Support Services
- Federal IT Services Contracts
- Computer Systems Design Services
Risk Flags
- Potential for cost overruns due to labor-hour contract type.
- Risk of vendor lock-in with proprietary solutions.
- Dependence on contractor performance for critical data management functions.
Tags
it-services, computer-systems-design, defense-manpower-data-center, northrop-grumman-systems-corporation, department-of-the-interior, full-and-open-competition, labor-hours, california, large-contract, it-support, defense-sector
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $88.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. INFORMATION ANALYSIS SUPPORT FOR THE DEFENSE MANPOWER DATA CENTER
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $88.2 million.
What is the period of performance?
Start: 2010-09-13. End: 2015-09-12.
What is Northrop Grumman's track record with similar large-scale IT support contracts for federal agencies, particularly within the Department of Defense?
Northrop Grumman has a long and extensive history of providing complex IT and systems integration services to various U.S. federal agencies, including a significant presence within the Department of Defense. They have been involved in numerous large-scale contracts encompassing areas such as enterprise resource planning, cybersecurity, data analytics, and command and control systems. Their experience often includes managing large teams, complex technical challenges, and stringent security requirements. For instance, they have held contracts related to personnel management systems, logistics, and intelligence support. This specific contract with the Defense Manpower Data Center leverages their established capabilities in managing critical data infrastructure and providing reliable IT support, aligning with their broader portfolio of defense-related IT services.
How does the $88.2 million contract value compare to other IT support contracts for similar defense data management functions?
The $88.2 million contract value over five years, averaging approximately $17.6 million annually, positions this as a substantial, but not exceptionally large, IT support contract within the defense sector. Comparable contracts for managing large, sensitive databases and providing associated IT infrastructure and design services can range from tens of millions to hundreds of millions of dollars annually, depending on the complexity, scope, and number of users. For example, contracts supporting other major defense data repositories or enterprise IT modernization efforts often exceed this value. The full and open competition with 21 bidders suggests that the market has numerous providers capable of handling such requirements, and the awarded price reflects a competitive market rate for these specialized services.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential cost overruns due to the labor-hour pricing model, technical obsolescence of systems over the five-year period, and contractor performance issues. Cost overruns can be mitigated through robust contract oversight, detailed performance metrics, and regular financial reviews by the government. Technical obsolescence is managed by requiring the contractor to propose and implement modern solutions and by building flexibility into the contract for technology refreshes. Contractor performance is monitored through established performance standards, service level agreements, and potential penalties for non-compliance. The use of a large, experienced contractor like Northrop Grumman also mitigates some performance risks due to their established processes and resources.
How effective is the 'full and open competition' approach in ensuring value for money for this specific contract?
The 'full and open competition' approach is generally highly effective in ensuring value for money, especially for a contract of this magnitude and duration. By allowing all responsible sources to bid, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative technical solutions. The fact that 21 bids were received indicates a robust competitive landscape, which typically drives down prices and encourages contractors to offer their best value proposition to win the award. This process allows for a thorough comparison of technical approaches and costs, enabling the government to select the offer that provides the optimal balance of performance and price for the required IT support services.
What are the historical spending patterns for IT support services at the Defense Manpower Data Center or similar entities?
Historical spending patterns for IT support at entities like the Defense Manpower Data Center (DMDC) typically show a consistent and significant investment in maintaining and upgrading complex data management systems. Federal agencies, especially those within the Department of Defense, allocate substantial budgets to IT infrastructure, cybersecurity, and data services to ensure operational readiness and data integrity. Spending often increases during periods of system modernization or when new data requirements emerge. Analyzing past contracts awarded to the DMDC or comparable defense data centers would reveal trends in contract values, service types (e.g., system design, maintenance, cybersecurity), and contractor choices, providing context for the current $88.2 million award.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N10PS18451/C2750
Offers Received: 21
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $88,182,591
Exercised Options: $88,182,591
Current Obligation: $88,182,591
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 263010066
IDV Type: IDC
Timeline
Start Date: 2010-09-13
Current End Date: 2015-09-12
Potential End Date: 2015-09-12 00:00:00
Last Modified: 2016-06-14
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