Northrop Grumman's $198M USAID contract for data communications shows competitive sourcing but long duration
Contract Overview
Contract Amount: $198,109,676 ($198.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of State
Start Date: 2007-02-06
End Date: 2018-09-23
Contract Duration: 4,247 days
Daily Burn Rate: $46.6K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: ENM GLOBAL DATA COMMUNICATIONS CAPABILITIES UNDER USAID PRIME 3.2
Place of Performance
Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $198.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: ENM GLOBAL DATA COMMUNICATIONS CAPABILITIES UNDER USAID PRIME 3.2 Key points: 1. Significant contract value of $198.1 million awarded to Northrop Grumman. 2. Contract type is 'Competitive Delivery Order', indicating some level of competition. 3. Long contract duration (2007-2018) raises questions about adaptability and potential for cost overruns. 4. NAICS code 541511 points to custom computer programming services, a key IT sector.
Value Assessment
Rating: fair
The contract's total value is substantial. Without specific per-unit cost data or benchmarks for similar custom programming services over such a long period, assessing its value for money is challenging. The time and materials pricing model can also lead to cost uncertainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was awarded as a 'Competitive Delivery Order', suggesting that multiple vendors were considered. However, the specifics of the competition, such as the number of bidders and the evaluation criteria, are not detailed. This method aims for price discovery but can be influenced by the specific requirements and market conditions at the time of award.
Taxpayer Impact: The competitive nature of the award suggests an effort to secure reasonable pricing, but the long duration and time-and-materials structure may have impacted the ultimate cost-effectiveness for taxpayers.
Public Impact
Ensures critical data communication capabilities for USAID operations. Supports technological infrastructure for international development programs. Long-term commitment may reflect the complexity and ongoing need for these services. Potential for outdated technology if not managed proactively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (11+ years)
- Time and Materials pricing model
- Lack of specific competition details
- Potential for technology obsolescence
Positive Signals
- Awarded under a competitive process
- Supports critical USAID mission functions
- Established vendor with experience
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is crucial for government modernization and operational efficiency. Benchmarks for similar long-term, complex IT service contracts vary widely based on scope and technology.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation or subcontracting in the provided data, suggesting limited direct impact on small businesses for this prime contract.
Oversight & Accountability
The long duration of the contract necessitates robust oversight from the Department of State to ensure performance, manage costs, and adapt to evolving technological needs. Accountability for meeting USAID's data communication requirements is paramount.
Related Government Programs
- Custom Computer Programming Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Long contract duration may lead to inefficiencies.
- Time and Materials pricing can inflate costs.
- Risk of technology obsolescence.
- Limited transparency on competition details.
- Potential for cost overruns due to extended period.
Tags
custom-computer-programming-services, department-of-state, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $198.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. ENM GLOBAL DATA COMMUNICATIONS CAPABILITIES UNDER USAID PRIME 3.2
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 $198.1 million.
What is the period of performance?
Start: 2007-02-06. End: 2018-09-23.
What was the specific competitive landscape for this delivery order, and how did it influence pricing?
The data indicates a 'Competitive Delivery Order', suggesting multiple proposals were evaluated. However, without details on the number of bidders or the specific evaluation criteria, it's difficult to ascertain the extent of competition and its precise impact on price discovery. The time and materials structure also complicates a direct comparison of pricing efficiency.
Given the 11-year duration, what mechanisms were in place to mitigate risks associated with technology obsolescence and cost escalation?
The long contract term inherently carries risks of technology becoming outdated and costs escalating. Effective mitigation would require strong contract management, including regular reviews, potential for contract modifications to incorporate new technologies, and careful monitoring of labor rates and material costs under the time and materials model.
How effectively did this contract support USAID's evolving data communication needs over its extended period?
The contract's longevity suggests a sustained need for the services provided. However, assessing its effectiveness requires evaluating whether the delivered capabilities kept pace with USAID's changing operational requirements and technological advancements throughout the contract's lifecycle, which is not detailed in the provided data.
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
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: SAQMPD07Q0006
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
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: $747,377,464
Exercised Options: $199,771,353
Current Obligation: $198,109,676
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4506G
IDV Type: FSS
Timeline
Start Date: 2007-02-06
Current End Date: 2018-09-23
Potential End Date: 2018-09-23 00:00:00
Last Modified: 2018-10-30
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