Northrop Grumman protests lost $2.6B contract award

Company disagrees with GSA decision to recompete the award it won in November

Northrop Grumman Corp. wants answers to General Services Administration's decision to take back a $2.6 billion IT contract it had awarded to the company, the company said today.

“Northrop Grumman has been unable to confirm the basis for the U.S. General Services Administration’s extraordinary decision to cancel the award to Northrop Grumman and has asked the U.S. Government Accountability Office to review the GSA’s actions,” Mark Root, spokesman for the company, said.


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Northrop Grumman filed a protest to GAO in late November after GSA took away a 10-year, $2.6 billion contract the company had won because GSA was concerned aboutfairness. The company won the award in September to develop the IT infrastructure for the Homeland Security Department’s new campus. GSA will build the campus for DHS at the former St. Elizabeths Hospital in southeast Washington.

After picking the company, GSA withdrew its award to Northrop Grumman, after other contractors filed protests against the award.

GSA found its best option was a new solicitation for the work “to allow for re-solicitation and to expediently and effectively resolve any and all issues raised in the protests,” Sara Merriam, GSA’s press secretary, said in a statement.

“After reviewing the protests filed in response to the St. Elizabeths' IT award, GSA decided that the best course of action was to re-solicit the requirements,” she said.

GSA decided to cancel the awarded contract and is already preparing a new solicitation to be issued soon, which will include any updated requirements. GSA has also assigned a new procurement team, including a new contracting officer and a new technical evaluation board chairman, for this new procurement, Merriam said.

The do-over won’t impede GSA’s objective of building the IT infrastructure in parallel with the construction project.

“On time and on budget completion of this project for DHS is of paramount importance to GSA, and this re-procurement is not expected to negatively impact the project’s schedule or funding,” Merriam said.

A Government Accountability Office decision on Nortrhop Grumman's protest is due March 2.

About the Author

Matthew Weigelt is a freelance journalist who writes about acquisition and procurement.

Reader Comments

Tue, Dec 14, 2010 Needy Worker

Northrop Grumman won - fair and square.

The Protests' cases are frivolous and were intended to steal a small portion of the work. What it did in reality was to screwe up everything and have the jobs that could have helped thousands of unemployed folks locally (at Christmas time), go unfilled.

Shame on Lockheed Martin, General Dynamics and the other losers.

Fri, Dec 10, 2010

IS it frivolous to have due process? Seems everyone is quick to protest now and the companies that won are left with little explanation at times. The awardee must sit in the wings with sometimes significant cost of money impact while it is resolved in order to make sure they have the right employees to start up.

Wed, Dec 8, 2010 Observer V

if the delay won't impact the overall campus project, the schedule must have been heavily padded to begin with. as GSA won't reveal what the problem is, we need to assume the likelihood of bureaucratic bungling and sloth, with no accountability for the mismanagement. the agency remains one that customer agencies try to avoid, and contractors hate to deal with it. both have to deal with it, but it is not because it is a talented, businesslike oranization.

Wed, Dec 8, 2010 Frank Matt Tucson, AZ

Oh do not worry a bit, Northrop Grumman Corp has very deep pockets and cadre of lawyers that will grind out the answer/solution they want! Oh yes, Northrop Grumman Corp executives will also call upon select congressmen and senators who will make sure Northrop gets what they want in the end.

Wed, Dec 8, 2010

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