DoD's Defense Travel System contract awarded to Northrop Grumman for $31.7M, highlighting wired telecommunications carrier services
Contract Overview
Contract Amount: $31,732,222 ($31.7M)
Contractor: Northrop Grumman Information Technology Inc
Awarding Agency: Department of Defense
Start Date: 2012-09-05
End Date: 2013-09-30
Contract Duration: 390 days
Daily Burn Rate: $81.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: DEFENSE TRAVEL SYSTEM (DTS)
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $31.7 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: DEFENSE TRAVEL SYSTEM (DTS) Key points: 1. The contract value of $31.7 million for the Defense Travel System (DTS) indicates a significant investment in travel management technology. 2. Competition dynamics for this contract were characterized by 'full and open competition', suggesting a robust bidding process. 3. The award to Northrop Grumman Information Technology Inc. positions them as a key provider for essential defense travel infrastructure. 4. Performance context is tied to the Defense Logistics Agency, indicating a focus on operational efficiency and support for military personnel. 5. The sector positioning within 'Wired Telecommunications Carriers' points to the underlying network and communication infrastructure supporting DTS. 6. The contract duration of 390 days suggests a medium-term operational requirement for the travel system.
Value Assessment
Rating: fair
Benchmarking the value of this $31.7 million contract is challenging without specific performance metrics or detailed service breakdowns. However, the cost-plus-fixed-fee (CPFF) contract type suggests that while the contractor has an incentive to control costs, the government bears the risk of cost overruns. Comparing this to similar large-scale IT service contracts within the Department of Defense would provide a clearer picture of value for money. The provided data does not include enough detail to definitively assess if the pricing was competitive or if the value delivered was excellent.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition', indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bidders typically leads to more aggressive pricing and a wider range of innovative solutions, potentially resulting in better value for the government.
Taxpayer Impact: A competitive bidding process, even with two bidders, generally benefits taxpayers by encouraging more favorable pricing and service offerings compared to sole-source or limited competition scenarios.
Public Impact
Military personnel and civilian employees across the Department of Defense benefit from a streamlined and efficient travel booking and reimbursement process. The contract supports the delivery of critical IT infrastructure and services for the Defense Travel System, a vital operational tool. The geographic impact is nationwide, supporting DoD personnel traveling for official duties across various bases and locations. Workforce implications include the IT professionals at Northrop Grumman responsible for maintaining and potentially enhancing the DTS platform, as well as the end-users within the DoD who rely on the system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The CPFF contract type can lead to cost overruns if not managed diligently by the contracting agency.
- Limited competition (two bidders) may not have driven the most aggressive pricing or innovative solutions.
- The specific performance metrics and quality assurance measures are not detailed, making it difficult to assess contractor performance comprehensively.
Positive Signals
- Awarded under full and open competition, indicating a fair and accessible bidding process.
- The contract supports a critical system (DTS) that enhances operational efficiency for the DoD.
- Northrop Grumman is a large, established defense contractor with significant experience in IT services.
Sector Analysis
The Defense Travel System (DTS) operates within the broader IT services sector, specifically focusing on telecommunications and software solutions for government operations. The wired telecommunications carriers' industry (NAICS 517110) encompasses companies that provide telecommunications services over wired networks. This contract likely involves the underlying network infrastructure and connectivity required for the DTS platform to function reliably for users across the Department of Defense. Comparable spending benchmarks for large-scale government IT service contracts can range from tens to hundreds of millions of dollars annually, depending on the scope and complexity.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the prime contractor, Northrop Grumman Information Technology Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific prime contract award is likely minimal, though Northrop Grumman may engage small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Defense Logistics Agency (DLA) and potentially the Department of Defense's Inspector General. Mechanisms would include contract performance reviews, audits, and adherence to the terms and conditions of the Cost Plus Fixed Fee agreement. Transparency is generally maintained through contract award databases and reporting requirements, though detailed operational performance data may be less publicly accessible.
Related Government Programs
- Defense Travel Management Office (DTMO)
- General Services Administration (GSA) Travel Services
- Department of Defense IT Modernization Programs
- Government Travel Card Program
Risk Flags
- Cost-Plus-Fixed-Fee contract type carries inherent cost overrun risks.
- Limited competition (two bidders) may not have resulted in optimal pricing.
- Lack of detailed performance metrics in the provided data hinders a full value assessment.
Tags
defense, it-services, travel-management, wired-telecommunications-carriers, northrop-grumman, department-of-defense, defense-logistics-agency, full-and-open-competition, cost-plus-fixed-fee, virginia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.7 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. DEFENSE TRAVEL SYSTEM (DTS)
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $31.7 million.
What is the period of performance?
Start: 2012-09-05. End: 2013-09-30.
What is the historical spending trend for the Defense Travel System (DTS) under Northrop Grumman Information Technology Inc.?
Analyzing historical spending for the Defense Travel System (DTS) under Northrop Grumman requires accessing contract award data over multiple years. The provided data point of $31.7 million represents a single award with a specific start and end date (September 5, 2012, to September 30, 2013). To understand spending trends, one would need to aggregate all contract actions awarded to Northrop Grumman (and potentially other contractors) for DTS services over a longer period. This would involve searching contract databases for all related awards, summing their values, and observing any increases or decreases in annual spending. Factors influencing trends could include system upgrades, user base expansion, changes in travel policies, or shifts in contracting strategies. Without this broader historical data, it's impossible to determine if the $31.7 million award represents a typical, increased, or decreased level of spending for DTS.
How does the per-unit cost of managing a travel itinerary through DTS compare to industry benchmarks for commercial travel management solutions?
Determining the per-unit cost of managing a travel itinerary through DTS and comparing it to industry benchmarks is complex with the provided data. The contract value of $31.7 million is a total award amount, not broken down by the number of itineraries managed or the specific services rendered per itinerary. To perform such a comparison, one would need data on the total number of travel itineraries processed or managed under this contract during its period of performance. Additionally, commercial travel management benchmarks vary significantly based on the provider, the level of service, and the volume of business. A typical benchmark might be a few dollars per itinerary or a percentage of the total travel spend. Without the volume of itineraries managed and a clear understanding of the specific services included in the $31.7 million, a direct per-unit cost comparison to commercial benchmarks is not feasible.
What are the key performance indicators (KPIs) used to evaluate Northrop Grumman's performance on this DTS contract, and how did they perform against these metrics?
The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate Northrop Grumman's performance on the Defense Travel System (DTS) contract. Typically, for IT service contracts like this, KPIs might include system uptime and availability, response times for user support, data security compliance, processing speed for travel authorizations and vouchers, and user satisfaction rates. To assess performance, one would need access to the contract's Service Level Agreements (SLAs) and any performance reports generated during the contract period. Without this information, it's impossible to determine if Northrop Grumman met or exceeded performance expectations. The 'fair' rating in the 'va' section suggests a lack of definitive positive performance indicators in the available data.
What is the risk profile associated with Northrop Grumman Information Technology Inc. as a contractor for critical defense systems like DTS?
Northrop Grumman Information Technology Inc. is a subsidiary of a major defense contractor, Northrop Grumman Corporation, which generally implies a lower risk profile due to their established reputation, extensive experience, and robust internal compliance and quality control systems. However, specific risks can still exist. These might include potential cybersecurity vulnerabilities inherent in any large IT system, the risk of cost overruns associated with Cost Plus Fixed Fee (CPFF) contracts if not managed tightly, and the potential for service disruptions. The 'wi' section highlights potential concerns such as cost overruns and the limited competition. A comprehensive risk assessment would involve reviewing past performance records, financial stability, and any history of security incidents or contract disputes related to Northrop Grumman's IT services.
How has the transition from this contract to subsequent DTS contracts impacted service delivery and costs for the Department of Defense?
Information regarding the transition from this specific $31.7 million contract (ending September 30, 2013) to subsequent Defense Travel System (DTS) contracts is not provided in the data. To analyze the impact, one would need to identify the successor contract(s), the awarded contractor(s), and the contract values and terms. A smooth transition typically involves knowledge transfer, minimal disruption to end-users, and continued or improved service levels at comparable or reduced costs. A problematic transition could lead to service interruptions, increased costs due to inefficiencies, or a decline in user satisfaction. Examining the contract history following September 2013 would be necessary to evaluate the impact on service delivery and costs.
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: 2
Pricing Type: COST PLUS FIXED FEE (U)
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: $104,349,911
Exercised Options: $31,732,222
Current Obligation: $31,732,222
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877104D0004
IDV Type: IDC
Timeline
Start Date: 2012-09-05
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2014-03-09
More Contracts from Northrop Grumman Information Technology Inc
- Federal Contract — $442.4M (Department of Defense)
- Services--Dko Concept of Operations — $441.3M (Department of Defense)
- 200510!500520!2100!w912su!aca, Nrcc - Mission Division !W911S004C0006 !A!N! !Y! !p00006!20050707!20050930!064679264!064679264!016435559!n!northrop Grumman Information T!2411 Dulles Corner Park !herndon !va!20171!23950!103!20!fort Leavenworth !leavenworth !kansas !+000019492204!n!n!000000000000!r499!other Professional Services !S1 !services !000 !* !541519!E! !3! ! !B! ! !20200930!B! ! !A! !a!u!r!2!002!b! !C!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !W55C6Q!0001! ! — $431.7M (Department of Defense)
- Gccs-J System Engineering Igf::ot::igf — $197.7M (Department of Defense)
- Migrated Data Value Unknown — $103.0M (Department of Defense)
View all Northrop Grumman Information Technology Inc federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)