DoD's $57.1M Custom Computer Programming Contract with Northrop Grumman: Analysis of Value and Competition
Contract Overview
Contract Amount: $57,105,890 ($57.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2006-09-29
End Date: 2012-03-28
Contract Duration: 2,007 days
Daily Burn Rate: $28.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: END-TO-END ANALYSIS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310
Plain-Language Summary
Department of Defense obligated $57.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: END-TO-END ANALYSIS Key points: 1. Contract awarded to a single, large defense contractor, raising questions about potential price inflation. 2. The contract's duration and value suggest a significant, long-term IT service requirement for the Army. 3. Lack of small business participation noted, potentially limiting broader economic impact. 4. Analysis focuses on value for money, competitive landscape, and taxpayer impact for this IT service.
Value Assessment
Rating: fair
The contract value of $57.1 million over its period of performance is substantial. Without specific benchmarks for similar custom computer programming services, it's difficult to definitively assess value. However, the firm fixed-price structure provides some cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the award to a single entity, Northrop Grumman, warrants further investigation into the competitive process and whether it truly yielded the best possible price.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently. However, the final price and value derived from this specific contract will determine the ultimate taxpayer impact.
Public Impact
Taxpayers funded a significant IT services contract for the Department of the Army. The contract supported custom computer programming, likely critical to military operations. The award to a large corporation may have limited opportunities for smaller, innovative businesses.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price inflation due to single awardee.
- Limited small business participation.
- Lack of specific performance metrics for value assessment.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract provides cost certainty.
- Long-term contract indicates a sustained need.
Sector Analysis
This contract falls within the IT sector, specifically custom computer programming services. Spending in this area is crucial for modern defense operations. Benchmarks for similar large-scale IT service contracts are often proprietary or vary widely based on complexity and duration.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of subcontracting with small businesses. This suggests a missed opportunity to leverage the innovation and agility of the small business sector within this significant IT procurement.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for federal contracts would apply, including contract close-out procedures and potential audits to ensure compliance and proper use of funds.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns if scope creep occurred.
- Dependence on a single contractor for critical IT services.
- Lack of transparency on specific performance metrics.
- Limited opportunities for small business innovation.
Tags
custom-computer-programming-services, department-of-defense, dc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. END-TO-END ANALYSIS
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $57.1 million.
What is the period of performance?
Start: 2006-09-29. End: 2012-03-28.
What was the competitive landscape like for this specific custom computer programming service, and did the full and open competition result in a price significantly below other potential bids?
While awarded under full and open competition, the specific details of the bidding process and the number of competing proposals are not provided. A thorough review would involve examining the bid protest history and comparing the final awarded price against independent cost estimates or market research data to confirm optimal price discovery and taxpayer value.
What were the key performance indicators (KPIs) for this contract, and how effectively did Northrop Grumman meet them to ensure the government received adequate value for the $57.1 million spent?
The provided data does not include specific KPIs or performance evaluation reports for this contract. Assessing the true value requires examining deliverables, system performance, and user satisfaction against the contract's objectives. Without this information, it's challenging to definitively state whether the government received optimal value for the investment.
Given the duration and value, what was the strategic importance of these custom computer programming services to the Department of the Army, and how did this contract contribute to mission effectivene
The substantial investment suggests these services were critical to the Army's operational or administrative functions, likely involving complex software development or integration. The effectiveness would be measured by the system's reliability, security, and its contribution to achieving specific military objectives or improving internal processes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W74V8H06R0046
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 12011 SUNSET HILLS ROAD, RESTON, VA, 11
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $78,983,855
Exercised Options: $78,070,181
Current Obligation: $57,105,890
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-09-29
Current End Date: 2012-03-28
Potential End Date: 2012-03-28 00:00:00
Last Modified: 2012-09-30
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