DoD's $228.7M Northrop Grumman O&M Contract: Engineering Services Lacked Competition
Contract Overview
Contract Amount: $228,732,558 ($228.7M)
Contractor: Northrop Grumman Technical Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-04-08
End Date: 2014-07-22
Contract Duration: 1,566 days
Daily Burn Rate: $146.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: OPERATION AND MAINTENTANCE SERVICES
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $228.7 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: OPERATION AND MAINTENTANCE SERVICES Key points: 1. Significant spending on engineering services for operations and maintenance. 2. Sole-source award to Northrop Grumman Technical Services, Inc. raises competition concerns. 3. Contract duration of over 4 years suggests long-term reliance. 4. High value indicates substantial taxpayer investment in this service area.
Value Assessment
Rating: questionable
The contract's value of $228.7 million over approximately 4 years for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar services procured competitively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a contract of this magnitude means taxpayers may have overpaid for the engineering services provided.
Public Impact
Taxpayers funded a large contract for essential operations and maintenance engineering. The absence of competition raises questions about the efficiency and cost-effectiveness of this procurement. Long-term contracts like this can lock in providers, potentially hindering innovation and cost reduction.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Long contract duration
- Lack of small business participation
Positive Signals
- Essential service provision
- Established contractor relationship
Sector Analysis
This contract falls under engineering services, a critical sector for government operations and maintenance. Benchmarks for similar large-scale engineering service contracts are difficult to establish without competitive data, but the value suggests a significant program.
Small Business Impact
The data indicates that small business participation was not a factor in this contract, as it was awarded to a large corporation and the 'sb' field is false.
Oversight & Accountability
The sole-source nature of this contract warrants scrutiny regarding the justification for not seeking competitive bids. Oversight should focus on ensuring the necessity of this approach and the reasonableness of costs.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Potential for cost overruns
- Limited transparency
- No small business consideration
Tags
engineering-services, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $228.7 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. OPERATION AND MAINTENTANCE SERVICES
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN TECHNICAL SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $228.7 million.
What is the period of performance?
Start: 2010-04-08. End: 2014-07-22.
What was the specific justification for awarding this significant engineering services contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without further documentation, it's impossible to determine the precise reason. However, such justifications are often scrutinized to ensure they are valid and not simply a means to avoid competitive processes.
How does the cost of this contract compare to industry benchmarks for similar engineering services, given its sole-source nature?
Direct comparison to industry benchmarks is challenging due to the sole-source award. Competitive contracts allow for market-driven pricing. For sole-source contracts, agencies often rely on cost analysis and historical data, but the absence of competition inherently limits the ability to confirm true cost-effectiveness against market alternatives.
What measures were in place to ensure the effectiveness and quality of services provided under this non-competed contract?
Effectiveness and quality are typically ensured through detailed performance work statements, service level agreements, and rigorous inspection and acceptance processes. Contract officers and technical monitors are responsible for overseeing contractor performance and ensuring deliverables meet requirements, regardless of the procurement method.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6339410R5006
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $237,892,502
Exercised Options: $237,892,502
Current Obligation: $228,732,558
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2010-04-08
Current End Date: 2014-07-22
Potential End Date: 2014-07-22 00:00:00
Last Modified: 2023-06-29
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