DoD Awards $47.2M to Northrop Grumman for Facilities Support Services to Sustain Operations

Contract Overview

Contract Amount: $47,252,507 ($47.3M)

Contractor: Northrop Grumman Technical Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-05-10

End Date: 2015-08-16

Contract Duration: 463 days

Daily Burn Rate: $102.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF LRC BASOPS BRIDGE CONTRACT TO SUSTAIN OPERATIONS SO THE EAGLE PROCUREMENT CAN BE COMPLETED.

Place of Performance

Location: FORT POLK, VERNON County, LOUISIANA, 71459

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $47.3 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC. for work described as: IGF::CT::IGF LRC BASOPS BRIDGE CONTRACT TO SUSTAIN OPERATIONS SO THE EAGLE PROCUREMENT CAN BE COMPLETED. Key points: 1. Contract awarded to a single, large business, raising questions about small business participation. 2. The contract's purpose is to bridge operations while a larger procurement is completed. 3. A firm-fixed-price contract type suggests a defined scope and cost structure. 4. The duration of the contract (463 days) indicates a short-to-medium term need.

Value Assessment

Rating: fair

The contract value of $47.2M for facilities support services over approximately 15 months appears high without specific performance metrics or benchmarks. Further analysis is needed to compare this to similar contracts for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competition is absent.

Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for services that could potentially be procured at a lower cost through a competitive process.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The reliance on a single contractor for essential operational support raises concerns about long-term strategic sourcing. The contract's duration suggests a temporary solution, but the significant award amount warrants scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Facilities Support Services (NAICS 561210) encompass a broad range of services. The spending benchmark for this sector varies widely based on the specific services provided and the scale of operations. This contract's value is substantial for a bridge contract.

Small Business Impact

The contract was awarded to Northrop Grumman Technical Services, Inc., a large business. There is no indication of small business subcontracting goals or participation in this award, which is a missed opportunity for small business engagement.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the contractor is delivering services effectively and at a reasonable cost. Accountability for performance and spending is crucial given the lack of competition.

Related Government Programs

Risk Flags

Tags

facilities-support-services, department-of-defense, la, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.3 million to NORTHROP GRUMMAN TECHNICAL SERVICES, INC.. IGF::CT::IGF LRC BASOPS BRIDGE CONTRACT TO SUSTAIN OPERATIONS SO THE EAGLE PROCUREMENT CAN BE COMPLETED.

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN TECHNICAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $47.3 million.

What is the period of performance?

Start: 2014-05-10. End: 2015-08-16.

What specific facilities support services are included in this $47.2M contract, and how do they align with the needs of the Eagle procurement?

The contract details are limited, but it's described as 'LRC BASOPS BRIDGE CONTRACT TO SUSTAIN OPERATIONS SO THE EAGLE PROCUREMENT CAN BE COMPLETED.' This suggests the services are critical for maintaining ongoing operations during the transition to a new, larger procurement vehicle known as Eagle. Specific services likely include maintenance, logistics, and base operations support, but a detailed breakdown is not provided in the summary data.

What is the justification for awarding this significant contract on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically stems from unique capabilities, urgent needs, or the unavailability of other sources. For this contract, the urgency to sustain operations while the Eagle procurement is finalized might be the primary driver. However, without a competitive process, ensuring fair pricing relies heavily on government negotiation, cost analysis, and potentially referencing historical pricing or industry benchmarks, which are not detailed here.

What is the projected cost savings or efficiency gain anticipated from completing the Eagle procurement, and how does this bridge contract impact that timeline?

The data provided does not offer insights into projected cost savings or efficiency gains from the Eagle procurement. This bridge contract's primary function is to prevent operational disruption, implying that its cost is a necessary expenditure to maintain continuity. The impact on the Eagle procurement timeline is also not specified, but the contract's duration suggests it's intended to cover the period until Eagle is fully operational.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 2411 DULLES CORNER PARK STE 800, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,667,911

Exercised Options: $47,667,911

Current Obligation: $47,252,507

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2014-05-10

Current End Date: 2015-08-16

Potential End Date: 2015-08-16 00:00:00

Last Modified: 2025-04-21

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