DoD awards Northrop Grumman $442M for Custom Computer Programming Services
Contract Overview
Contract Amount: $442,404,121 ($442.4M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Defense
Start Date: 2002-09-12
End Date: 2014-12-31
Contract Duration: 4,493 days
Daily Burn Rate: $98.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $442.4 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: Key points: 1. Significant contract value of over $442 million awarded to a single large business. 2. The contract spans over 12 years, indicating a long-term need for these services. 3. Competition method was 'Full and Open', suggesting a potentially competitive bidding process. 4. The sector is IT services, a common area for substantial government spending.
Value Assessment
Rating: fair
The contract value is substantial, but without specific per-unit cost data or benchmarks for similar custom programming services, a precise value assessment is difficult. The long duration suggests potential for cost escalation if not managed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the broadest range of potential bidders and can lead to better price discovery. However, the long duration and specific nature of custom programming may limit the number of truly competitive bids.
Taxpayer Impact: The long-term nature of this contract means taxpayers are committed to a significant expenditure over more than a decade. Effective management and oversight are crucial to ensure value for money.
Public Impact
Taxpayers are committed to over $442 million for IT services over 12 years. The contract supports custom computer programming, essential for modern defense operations. Long-term contracts can provide stability but also carry risks of cost overruns and technological obsolescence.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (12+ years)
- High total contract value
- Sole large business awardee
Positive Signals
- Full and open competition
- Firm fixed price contract type
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Government spending in this area is consistently high, driven by the need for specialized software development and maintenance for various agency functions.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The long duration of this contract necessitates robust oversight from the Defense Contract Management Agency to ensure performance, adherence to specifications, and cost control. Regular reviews and performance metrics are essential for accountability.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long-term commitment of taxpayer funds
- Potential for technological obsolescence over 12 years
- Risk of cost escalation if contract terms are not strictly managed
- Limited visibility into specific services and their future relevance
Tags
custom-computer-programming-services, department-of-defense, va, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $442.4 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 Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $442.4 million.
What is the period of performance?
Start: 2002-09-12. End: 2014-12-31.
What specific custom computer programming services are being provided, and how do they align with current and future Department of Defense technological needs?
The contract specifies 'Custom Computer Programming Services' (NAICS 541511). While the exact nature of the programming is not detailed, it likely supports specific defense systems or operational requirements. The long duration suggests these services are considered critical and enduring. However, without further details on the specific applications, it's difficult to assess their alignment with future technological needs, posing a risk of obsolescence or the need for costly modifications.
Given the 12-year duration and firm fixed price, what mechanisms are in place to manage potential scope creep or unforeseen technological advancements that could impact cost-effectiveness?
A firm fixed price contract aims to cap costs, but a 12-year duration presents challenges. Mechanisms likely include detailed statements of work, change order procedures, and regular performance reviews. However, significant technological shifts or evolving defense requirements could still necessitate contract modifications, potentially increasing costs or requiring renegotiation. The effectiveness of these controls over such a long period is a key risk factor.
How was the benchmark pricing established for this 'Full and Open Competition' to ensure the $442 million award represents fair market value over the contract's lifespan?
During a full and open competition, the agency would typically establish a baseline estimate based on market research, historical data, and independent cost estimates. Bidders then submit proposals, and the contract is awarded to the best value offer. For a contract of this magnitude and duration, ensuring the initial pricing is competitive and that mechanisms exist to manage price adjustments due to inflation or market changes over 12 years is crucial for taxpayer value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 7575 COLSHIRE DR, MC LEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-09-12
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2015-08-17
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