Northrop Grumman awarded $31.4M for GSOC Services, highlighting custom programming needs

Contract Overview

Contract Amount: $31,404,427 ($31.4M)

Contractor: Northrop Grumman Information Technology Inc

Awarding Agency: Department of the Treasury

Start Date: 2009-03-02

End Date: 2014-12-31

Contract Duration: 2,130 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GOVERNMENT SECURITY OPERATIONS CENTER (GSOC) SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $31.4 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: GOVERNMENT SECURITY OPERATIONS CENTER (GSOC) SERVICES Key points: 1. Contract value represents a significant investment in critical government security infrastructure. 2. The firm fixed-price structure aims to control costs and ensure predictable spending. 3. A single award suggests a focused approach to meeting specific operational requirements. 4. The duration of the contract indicates a long-term need for these specialized services. 5. Custom computer programming services are essential for maintaining advanced security operations. 6. The contract's performance period spans over five years, demonstrating sustained demand.

Value Assessment

Rating: good

The contract value of $31.4 million over approximately five years for GSOC services appears reasonable given the specialized nature of custom computer programming and security operations. Benchmarking against similar large-scale security service contracts is challenging without more granular data on service scope and performance metrics. However, the firm fixed-price contract type suggests an effort to manage costs effectively. The absence of multiple options or modifications in the provided data implies a stable requirement that was met within the initial award parameters.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 16 bids suggests a competitive marketplace for these specialized GSOC services. A robust bidding process typically leads to better price discovery and potentially more favorable terms for the government. The government's ability to select from a wide pool of qualified contractors underscores the competitive nature of this procurement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value for its investment. It also promotes innovation as contractors vie to offer superior solutions.

Public Impact

The primary beneficiaries are federal agencies relying on the Government Security Operations Center (GSOC) for threat detection and response. Services delivered include advanced cybersecurity monitoring, incident response, and threat intelligence. The geographic impact is centered in the District of Columbia, where the Bureau of the Fiscal Service is located. The contract supports a workforce skilled in cybersecurity, network operations, and custom software development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if custom solutions are highly proprietary.
Reliance on a single contractor for critical security operations could pose a risk if performance degrades.
The long contract duration might limit opportunities to adopt newer, more cost-effective technologies if not managed proactively.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Firm fixed-price contract type helps manage cost certainty.
The contract duration suggests a stable and ongoing need for these critical services.
Northrop Grumman is a large, established defense and technology contractor with significant experience.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming (NAICS 541511). The market for cybersecurity and security operations center services is substantial and growing, driven by increasing cyber threats. This contract represents a significant portion of spending for specialized security operations, likely benchmarking against other large federal IT service contracts. The demand for such services is consistent across various government agencies requiring robust digital defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large contract awarded to a major prime contractor, the primary focus is likely on the prime's capabilities. However, large prime contractors often engage small businesses for specialized support services, so subcontracting opportunities may exist, though they are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of the Fiscal Service, with contract officers and program managers monitoring performance against the statement of work. The firm fixed-price nature provides a degree of cost oversight. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General involvement would be triggered by specific allegations of fraud, waste, or abuse.

Related Government Programs

Federal Cybersecurity Programs
IT Services Procurement
Custom Software Development Contracts
Government Security Operations Centers
Information Technology Support Services

Risk Flags

Long-term contract duration
Reliance on a single vendor for critical security functions
Potential for technology obsolescence if not managed proactively

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $31.4 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. GOVERNMENT SECURITY OPERATIONS CENTER (GSOC) SERVICES

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 the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $31.4 million.

What is the period of performance?

Start: 2009-03-02. End: 2014-12-31.

What is the specific scope of 'Government Security Operations Center (GSOC) Services' provided under this contract?

The 'Government Security Operations Center (GSOC) Services' under this contract likely encompass a range of critical functions aimed at protecting federal information systems and data. This typically includes 24/7 monitoring of networks and systems for security threats, intrusion detection and prevention, incident response and management, vulnerability assessment, and threat intelligence analysis. Given the 'Custom Computer Programming Services' (NAICS 541511) classification, the services may also involve the development, integration, and maintenance of specialized software tools and platforms used to support these security operations. This could include custom dashboards, automated alert systems, and data analytics tools tailored to the specific needs of the Bureau of the Fiscal Service.

How does the $31.4 million contract value compare to similar GSOC service contracts awarded by the government?

Comparing the $31.4 million contract value requires context regarding the duration and scope of services. This contract, awarded in 2009 and ending in 2014, represents an average annual spend of approximately $6.3 million. GSOC services are highly specialized and critical, often involving significant personnel, technology, and expertise. Larger agencies or those with more complex threat landscapes may award contracts in the tens or hundreds of millions of dollars annually. For its time and duration, this award appears to be a substantial investment, reflecting the importance of securing critical financial infrastructure. Benchmarking would ideally involve comparing it to other contracts for similar-sized agencies or those with comparable security requirements.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are not detailed in the provided summary data. However, for GSOC services, typical KPIs would likely include metrics related to threat detection time (e.g., mean time to detect - MTTD), incident response time (e.g., mean time to respond - MTTR), the number of security incidents detected and resolved, system availability, and the accuracy of threat assessments. SLAs would define the expected performance levels for these metrics, often with associated penalties for non-compliance or incentives for exceeding targets. The firm fixed-price nature of the contract suggests that performance expectations would be clearly defined in the contract's statement of work.

What is Northrop Grumman's track record in providing similar cybersecurity and security operations services to the federal government?

Northrop Grumman Information Technology Inc. (now part of Northrop Grumman Corporation) has a long and extensive track record of providing IT and cybersecurity services to the federal government. They are a major defense contractor with significant expertise in areas such as command and control, intelligence, surveillance, reconnaissance, and cybersecurity solutions. Their portfolio includes developing and operating large-scale security operations centers, providing threat detection and response capabilities, and managing complex IT infrastructures for various government agencies, including defense, intelligence, and civilian departments. Their experience suggests a strong capability to fulfill the requirements of this GSOC services contract.

Were there any significant contract modifications or overruns associated with this contract?

The provided summary data does not indicate any significant contract modifications or overruns. The contract was awarded for a specific period (March 2009 to December 2014) with a total value of $31.4 million. The absence of reported modifications or changes in the summary suggests that the contract was likely executed largely as planned within its original scope and budget. However, a deeper review of the contract's history within federal procurement databases would be necessary to confirm the absence of any minor modifications or adjustments that might not be captured in a high-level summary.

What is the strategic importance of this GSOC contract for the Bureau of the Fiscal Service?

The strategic importance of this GSOC contract for the Bureau of the Fiscal Service (BFS) is paramount, given BFS's role in managing the nation's finances and treasury systems. A robust GSOC ensures the confidentiality, integrity, and availability of sensitive financial data and critical infrastructure. By outsourcing these specialized security operations to a contractor like Northrop Grumman, BFS can leverage advanced technologies and expertise to defend against sophisticated cyber threats targeting financial systems. This allows BFS to focus on its core mission of managing federal finances, knowing that its digital assets are under continuous, expert surveillance and protection, thereby safeguarding national economic stability.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 7575 COLSHIRE DRIVE, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $31,866,288

Exercised Options: $31,866,203

Current Obligation: $31,404,427

Parent Contract

Parent Award PIID: W91QUZ07D0005

IDV Type: IDC

Timeline