Northrop Grumman awarded $19.4M for Bureau of Consular Affairs IT services, spanning over four years

Contract Overview

Contract Amount: $19,409,785 ($19.4M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of State

Start Date: 2008-06-17

End Date: 2012-12-07

Contract Duration: 1,634 days

Daily Burn Rate: $11.9K/day

Sector: IT

Official Description: SASI TO-3, C&A FOR BUREAU OF CONSULAR AFFAIRS

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $19.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SASI TO-3, C&A FOR BUREAU OF CONSULAR AFFAIRS Key points: 1. Contract value appears reasonable for the duration and scope of custom computer programming services. 2. Limited competition dynamics may have influenced final pricing. 3. Contract duration and BPA call structure present moderate execution risks. 4. Services provided are critical for consular affairs operations. 5. This contract falls within the IT services sector, specifically custom programming. 6. Spending aligns with typical IT modernization efforts in government agencies.

Value Assessment

Rating: good

The contract value of approximately $19.4 million over 1634 days (roughly 4.5 years) suggests an average annual spend of around $4.3 million. This figure seems within a reasonable range for complex IT services provided to a federal agency of this size. Benchmarking against similar custom computer programming contracts for federal agencies of comparable scope and complexity would provide a more precise value-for-money assessment. However, without direct comparisons of specific service deliverables and performance metrics, it's challenging to definitively state if this represents excellent or fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was issued as a BPA Call against an existing Blanket Purchase Agreement (BPA). While BPAs can streamline procurement, the specific competition level for this call is described as 'limited.' This suggests that not all potential offerors on the BPA were solicited, or that the solicitation was restricted to a subset of vendors. A limited competition environment typically leads to less robust price discovery compared to full and open competition, potentially resulting in higher prices.

Taxpayer Impact: Limited competition means taxpayers may not have benefited from the most competitive pricing achievable through a broader solicitation process. This could translate to a less efficient use of federal funds.

Public Impact

Citizens and foreign nationals benefit from improved consular services facilitated by the underlying IT systems. The contract supports the development and maintenance of custom computer programming for the Bureau of Consular Affairs. Geographic impact is national, supporting the State Department's global mission. Workforce implications include the need for skilled IT professionals to develop and maintain these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have led to suboptimal pricing.
Contract duration could introduce risks related to technology obsolescence or changing requirements.
Reliance on a single BPA call structure might limit flexibility in adapting to new technological solutions.

Positive Signals

Northrop Grumman is a large, established defense and technology contractor with significant experience.
The contract supports critical functions of the Bureau of Consular Affairs, indicating essential service delivery.
The BPA call mechanism, while limited, can offer some efficiency in task order execution.

Sector Analysis

The Information Technology sector, particularly custom computer programming services (NAICS 541511), is a significant area of federal spending. Agencies rely heavily on IT for operations, data management, and service delivery. This contract fits within the broader trend of government investment in modernizing IT infrastructure and developing specialized software solutions to meet evolving mission requirements. Comparable spending benchmarks for custom IT development within federal agencies often run into millions of dollars annually, depending on complexity and scale.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. Given the prime contractor is Northrop Grumman, a large corporation, it is unlikely that significant subcontracting opportunities for small businesses were mandated under this specific award, unless specified within the BPA call itself. The absence of set-aside information suggests this contract was not primarily aimed at fostering small business participation.

Oversight & Accountability

Oversight for this contract would fall under the Department of State's contracting and program management offices. As a BPA Call, the underlying BPA likely has its own oversight framework. Transparency is generally facilitated through contract databases like FPDS. Accountability measures would be tied to performance metrics and deliverables outlined in the BPA call. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Department of State IT Modernization Programs
Bureau of Consular Affairs Systems Development
Custom Software Development Contracts
Blanket Purchase Agreements (BPAs)

Risk Flags

Limited competition
Long contract duration
Potential for technology obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $19.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SASI TO-3, C&A FOR BUREAU OF CONSULAR AFFAIRS

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2008-06-17. End: 2012-12-07.

What is Northrop Grumman's track record with the Department of State for similar IT services?

Northrop Grumman Systems Corporation has a substantial history of contracting with the Department of State and other federal agencies for a wide range of IT and defense-related services. Their portfolio includes complex system integration, software development, cybersecurity, and IT infrastructure support. For the Department of State specifically, Northrop Grumman has been involved in various projects, often related to large-scale IT modernization and operational support. While this specific contract focuses on custom computer programming for the Bureau of Consular Affairs, the company's extensive experience in delivering complex technological solutions suggests a strong capability to meet the requirements. However, a detailed review of past performance ratings, any past disputes, or contract modifications on similar State Department contracts would be necessary for a comprehensive assessment.

How does the $19.4 million contract value compare to other custom computer programming services procured by the Department of State?

The $19.4 million contract value, spread over approximately 4.5 years, represents an average annual expenditure of roughly $4.3 million for custom computer programming services. This amount is significant but not extraordinary within the context of large federal agencies like the Department of State, which often require substantial investments in IT to support global operations. To provide a precise comparison, one would need to analyze the scope, complexity, and duration of other custom programming contracts awarded by the State Department. Contracts for similar services can range from a few million to tens of billions of dollars annually across the federal government. This contract appears to be a mid-to-large size award for a specific functional area within the Bureau of Consular Affairs.

What are the primary risks associated with a 'limited' competition contract of this nature?

A 'limited' competition contract, as indicated for this BPA Call, carries several inherent risks. Primarily, it can lead to suboptimal pricing because the government does not benefit from the full spectrum of market competition. This lack of robust competition may result in higher costs for taxpayers. Furthermore, limited competition can stifle innovation, as fewer vendors are incentivized to propose novel or cost-saving solutions. There's also a risk that the chosen vendor might not be the absolute best fit for the requirement if other highly capable vendors were not solicited. From an oversight perspective, it can be more challenging to justify the award decision and ensure fair market value was obtained compared to a full and open competition.

How effective are BPA calls in ensuring value for money compared to other contract vehicles?

Blanket Purchase Agreements (BPAs) are designed to streamline the procurement process for recurring needs, offering convenience and potential cost savings through pre-negotiated terms. A BPA Call is a specific order placed against an existing BPA. When a BPA is established through full and open competition, subsequent calls can represent good value. However, the effectiveness in ensuring value for money heavily depends on how the BPA itself was competed and how the individual calls are managed. If the BPA was competed broadly, calls can be efficient. If the BPA or the call itself involves limited competition, the value proposition diminishes, potentially leading to higher prices than could be achieved through other vehicles like GSA Schedules or direct solicitations. Transparency and robust oversight during the call process are crucial for maximizing value.

What is the historical spending trend for custom computer programming services at the Bureau of Consular Affairs?

Analyzing historical spending trends for custom computer programming services at the Bureau of Consular Affairs (BCA) is crucial for understanding the context of this $19.4 million award. While the provided data only details this single contract, a comprehensive analysis would involve examining all IT service procurements by the BCA over several fiscal years. This would reveal patterns in spending levels, types of services procured (e.g., development, maintenance, integration), and the primary contractors involved. Significant year-over-year increases or decreases in spending could indicate shifts in strategic priorities, funding availability, or the lifecycle stage of major IT systems. Understanding these trends helps in assessing whether the current contract award is consistent with past investments or represents a new strategic direction or a significant increase in IT expenditure for the BCA.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 7575 COLSHIRE DR, MC LEAN, 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: $24,661,909

Exercised Options: $19,524,754

Current Obligation: $19,409,785

Parent Contract

Parent Award PIID: SAQMMA07A0007

IDV Type: BPA

Timeline