DoD Awards Northrop Grumman $197.7M for GCCS-J System Engineering Research and Development
Contract Overview
Contract Amount: $197,677,289 ($197.7M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Defense
Start Date: 2013-01-30
End Date: 2017-07-31
Contract Duration: 1,643 days
Daily Burn Rate: $120.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: GCCS-J SYSTEM ENGINEERING IGF::OT::IGF
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $197.7 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: GCCS-J SYSTEM ENGINEERING IGF::OT::IGF Key points: 1. Significant contract value of $197.7 million awarded to a single large contractor. 2. Competition method was 'Full and Open', suggesting a competitive bidding process. 3. Contract duration of over 4 years indicates a long-term need for these services. 4. The NAICS code (541712) points to R&D in physical, engineering, and life sciences.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D contracts is difficult without more specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing mechanisms within the CPFF structure require close monitoring to ensure value for money.
Taxpayer Impact: Taxpayer funds are being used for advanced system engineering and R&D, aiming to improve defense capabilities. The CPFF structure necessitates robust oversight to prevent excessive costs.
Public Impact
Enhances critical defense command and control systems (GCCS-J). Supports ongoing research and development in advanced engineering and physical sciences. Impacts national security by ensuring the effectiveness of military communication and information systems. Long-term contract may indicate sustained investment in defense technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs.
- Lack of specific performance metrics makes it hard to assess value.
- Long contract duration increases risk of scope creep or obsolescence.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical defense infrastructure.
- Experienced contractor with a significant role in defense IT.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on engineering and physical sciences. Defense R&D spending is a significant portion of the federal budget, with IT and system engineering being key components.
Small Business Impact
The contract was awarded to Northrop Grumman Information Technology Inc., a large business. There is no indication of small business participation in this specific award, which is common for large-scale defense R&D contracts.
Oversight & Accountability
The Department of Defense and the Defense Information Systems Agency are responsible for oversight. The CPFF contract type requires diligent monitoring of costs and performance to ensure accountability and prevent waste.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type.
- Long contract duration.
- Potential for cost overruns.
- Lack of detailed performance metrics in provided data.
- No explicit mention of small business subcontracting.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $197.7 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. GCCS-J SYSTEM ENGINEERING IGF::OT::IGF
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 (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $197.7 million.
What is the period of performance?
Start: 2013-01-30. End: 2017-07-31.
What specific R&D advancements are expected from this contract, and how will they translate into tangible improvements for the GCCS-J system?
The contract aims to provide system engineering support for the Global Command and Control System-Joint (GCCS-J). Expected advancements likely involve enhancing the system's capabilities, reliability, and interoperability with other defense platforms. Tangible improvements could include faster data processing, more secure communication channels, and better situational awareness for military commanders, ultimately bolstering operational effectiveness.
Given the CPFF structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure the government receives fair value?
The Cost Plus Fixed Fee (CPFF) structure necessitates robust oversight from the contracting agency. Mechanisms likely include detailed cost tracking, regular performance reviews, and strict adherence to the fixed fee component. The agency must actively manage the contract, scrutinize expenditures, and ensure that all costs incurred are reasonable, allocable, and necessary for the contract's objectives to safeguard taxpayer funds.
How does the long duration of this contract impact the potential for technological obsolescence or the need for future contract modifications?
A long contract duration, such as this 4-year award, presents a risk of technological obsolescence if the underlying technology evolves rapidly. It also increases the likelihood of requiring contract modifications to adapt to changing requirements or incorporate new technological advancements. Proactive contract management and regular reviews are crucial to mitigate these risks and ensure the system remains relevant and effective throughout its lifecycle.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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
Address: 7575 COLSHIRE DR, MCLEAN, 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: $216,897,500
Exercised Options: $214,625,893
Current Obligation: $197,677,289
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102808D2023
IDV Type: IDC
Timeline
Start Date: 2013-01-30
Current End Date: 2017-07-31
Potential End Date: 2017-07-31 00:00:00
Last Modified: 2022-10-25
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