DoD's $74.6M Incremental Funding for Wired Telecommunications Carriers Awarded to Northrop Grumman
Contract Overview
Contract Amount: $74,608,983 ($74.6M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Defense
Start Date: 2008-02-14
End Date: 2014-09-30
Contract Duration: 2,420 days
Daily Burn Rate: $30.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: LABOR HOURS
Sector: IT
Official Description: INCREMENTAL FUNDING FOR CLIN 0004
Place of Performance
Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731
Plain-Language Summary
Department of Defense obligated $74.6 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: INCREMENTAL FUNDING FOR CLIN 0004 Key points: 1. Significant funding allocated to a single large contractor. 2. Contract duration spans over 6 years, indicating long-term service needs. 3. The award is for Wired Telecommunications Carriers, a critical infrastructure sector. 4. Potential for cost overruns given the incremental funding approach.
Value Assessment
Rating: fair
The contract value of $74.6M over 6 years suggests a substantial investment. Benchmarking against similar large-scale telecommunications contracts is difficult without more granular data on services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the incremental funding nature might obscure the total price discovery over the contract's life.
Taxpayer Impact: Taxpayer funds are being utilized for essential telecommunications infrastructure, with the expectation of competitive pricing driving value.
Public Impact
Ensures continued operation of critical wired telecommunications infrastructure for the Air Force. Supports national security by maintaining robust communication networks. Potential impact on smaller businesses in the telecommunications sector if they were not prime contractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Incremental funding can lead to budget uncertainty and potential cost creep.
- Long contract duration may not reflect evolving technological needs.
- Lack of specific service details makes comprehensive value assessment challenging.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Addresses a clear need for telecommunications services within the Department of Defense.
Sector Analysis
This contract falls within the IT sector, specifically Wired Telecommunications Carriers. Spending in this area is crucial for government operations, but can be subject to rapid technological change and high infrastructure costs.
Small Business Impact
The contract data does not indicate any specific set-aside for small businesses. As a large prime contract, it's possible that small businesses could be involved as subcontractors, but this is not explicitly stated.
Oversight & Accountability
The incremental funding approach requires careful oversight to ensure funds are used efficiently and effectively throughout the contract's duration. Regular reviews by the Department of the Air Force are essential.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to incremental funding.
- Risk of technological obsolescence over the contract's long duration.
- Lack of transparency on specific services procured.
- Limited insight into subcontractor utilization, potentially excluding small businesses.
Tags
wired-telecommunications-carriers, department-of-defense, ma, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.6 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. INCREMENTAL FUNDING FOR CLIN 0004
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 $74.6 million.
What is the period of performance?
Start: 2008-02-14. End: 2014-09-30.
What specific telecommunications services are being procured under this contract, and how do they align with current Air Force operational requirements?
The contract is for Wired Telecommunications Carriers, a broad category. Without specific details on the services (e.g., bandwidth, network infrastructure, maintenance), it's difficult to assess precise alignment with current Air Force needs. This information is crucial for understanding the true value and necessity of the funding.
How does the incremental funding strategy impact the overall cost-effectiveness and risk of this long-term contract?
Incremental funding can introduce risks such as cost creep and budget uncertainty if not managed tightly. While it allows for phased payments, it can obscure the total contract cost and potentially lead to less competitive pricing over time compared to a fully funded contract awarded upfront.
What mechanisms are in place to ensure the government receives competitive pricing and value for money throughout the contract's extended duration?
Given the full and open competition award, initial pricing should be competitive. However, ongoing oversight and potential contract renegotiations or modifications will be key to ensuring continued value. The agency must monitor market rates and contractor performance 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: 3
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 7575 COLSHIRE DRIVE, MCLEAN, VA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $80,089,475
Exercised Options: $80,088,038
Current Obligation: $74,608,983
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877104D0004
IDV Type: IDC
Timeline
Start Date: 2008-02-14
Current End Date: 2014-09-30
Potential End Date: 2014-09-30 00:00:00
Last Modified: 2014-11-21
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