DoD's $37.6M Contract with Northrop Grumman for Wired Telecommunications Carriers Services
Contract Overview
Contract Amount: $37,662,156 ($37.7M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Defense
Start Date: 2011-09-29
End Date: 2013-06-30
Contract Duration: 640 days
Daily Burn Rate: $58.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TRAVEL/OTHER DIRECT COSTS
Place of Performance
Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $37.7 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: TRAVEL/OTHER DIRECT COSTS Key points: 1. Significant spending on telecommunications infrastructure. 2. Northrop Grumman is a major defense contractor. 3. Potential for cost overruns in Cost Plus Fixed Fee contracts. 4. Sector is essential for military operations and modernization.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar wired telecommunications contracts is difficult without more specific service details.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within the Cost Plus Fixed Fee structure warrant scrutiny.
Taxpayer Impact: Taxpayer funds are used for essential telecommunications services, with the efficiency dependent on effective cost control and oversight.
Public Impact
Ensures critical communication networks for the Air Force. Supports advanced technological capabilities for national defense. Potential impact on future telecommunications infrastructure investments.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Lack of specific performance metrics makes value assessment difficult.
- Limited information on the competitive landscape for this specific service.
Positive Signals
- Awarded under full and open competition.
- Supports critical Department of Defense operations.
Sector Analysis
This contract falls within the IT and telecommunications sector, crucial for modern defense operations. Spending benchmarks for similar large-scale telecommunications infrastructure projects vary widely based on scope and technology.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the 'sb' field is false. Larger prime contractors like Northrop Grumman may engage small businesses as subcontractors, but this is not detailed here.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs are reasonable and fixed fees are justified. The Department of Defense and Air Force would be responsible for monitoring performance and expenditures.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Fixed Fee structure.
- Limited transparency on specific services and performance metrics.
- Contract duration of over two years requires ongoing monitoring.
- Reliance on a single large contractor for critical infrastructure.
Tags
wired-telecommunications-carriers, department-of-defense, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.7 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. TRAVEL/OTHER DIRECT COSTS
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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $37.7 million.
What is the period of performance?
Start: 2011-09-29. End: 2013-06-30.
What specific telecommunications services are covered under this contract, and how do they align with current Air Force operational needs?
The contract is for 'Wired Telecommunications Carriers' (NAICS 517110). This typically includes services like local and long-distance voice and data transmission, internet access, and private line services. The alignment with current needs would depend on the specific network modernization or operational support requirements of the Air Force at the time of award and throughout the contract period.
How were the fixed fee and estimated costs determined during the full and open competition to ensure fair pricing?
During full and open competition, the government solicits bids from all responsible sources. For a Cost Plus Fixed Fee contract, the 'cost' portion is reimbursed actual allowable costs, while the 'fixed fee' represents the contractor's profit, negotiated upfront. The determination involves detailed cost proposals, technical evaluations, and negotiation to ensure the fee is fair and reasonable for the scope of work and associated risks.
What mechanisms are in place to mitigate cost overruns and ensure efficient delivery of services under this Cost Plus Fixed Fee contract?
Mitigation strategies typically include robust government oversight, regular audits of contractor costs, clear performance metrics, and defined ceilings for allowable costs. The fixed fee itself provides some incentive for efficiency, as the contractor's profit is capped. However, the primary responsibility lies with the contracting officer's representatives (CORs) to monitor performance and expenditures closely.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
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
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 7575 COLSHIRE DRIVE, MCLEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $37,662,156
Exercised Options: $37,662,156
Current Obligation: $37,662,156
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877104D0004
IDV Type: IDC
Timeline
Start Date: 2011-09-29
Current End Date: 2013-06-30
Potential End Date: 2013-06-30 00:00:00
Last Modified: 2021-08-05
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