Advanced Technology Support Program

ATSPATSP provides rapid access to Northrop Grumman advanced technologies and engineering services to improve the operational readiness of fielded systems. ATSP utilizes a contracting approach that can shorten the procurement cycle to as little as 4-6 weeks.


ATSP - ATSP - Administrative Information


Contractual Engineering Task (CET). Specific user requirements are defined in contractual engineering tasks which are issued as delivery orders against the basic ATSP2 contract. The contractor must submit a proposal based on the CET, which is then evaluated for price reasonableness and appropriate action is taken prior to delivery order award.

Technical Point of Contact (POC): The funding agency (the "customer") provides a technical POC who directly manages the contractor’s technical activity. The Technical POC establishes CET requirements and evaluates contractor proposals, authorizes all changes/modifications to delivery order task descriptions, and approves all contractor deliverables.

Purchasing Activity: Defense MicroElectronics Activity, McClellan, CA. The DMEA is the overall manager for the contract and provides a Procuring Contracting Officer.

Procuring Contracting Officer (PCO): DMEA’s PCO provides contractual direction to the contractor. The PCO performs functions in accordance with FAR 42.302(b) unless delegated to DCMC’s Administrative Contracting Officer. The PCO issues delivery orders, reviews and approves all changes to delivery orders, approves any additional travel not specifically stated in the contractor’s proposal and/or resulting delivery order, and authorizes the use of government furnished equipment (GFE).

Contract Administration Activity: Defense Contract Management Command (DCMC). The DCMC provides an Administrative Contracting Officer.

Administrative Contracting Officer (ACO):  DCMC’s ACO performs functions in accordance with FAR 42.302(a) with the exception of 4, 40, 41, 44, 45, 46, 62, and 64, which are retained by the DMEA procuring office. The ACO organizes and conducts a Post Award Orientation Conference, approves contractor-acquired property, reviews and approves progress payments and vouchers, performs contract surveillance as required, and performs contract closeout.

Project Engineer:  DMEA’s Project Engineer evaluates proposals, reviews contractor requests for GFE and requests for contractor-acquired property, tracks all deliverables and signs off on DD Form 250’s, attends Technical Interchange Meetings, modifies CETs if required and upon direction by customer’s Technical POC, coordinates funding with customer, performs contract surveillance as required.


ATSP - Contractor's Ordering Address


Northrop Grumman Aerospace Systems

  • ATSP2 Contracts & Administration
    Attention:  Phyllis Hundt
    MS:  M5/1262
    One Space Park Drive
    Redondo Beach, CA 90278

    E-Mail:  phyllis.hundt@ngc.com
  • Telephone and fax numbers that can be used by ordering agencies to obtain technical and/or ordering assistance:
    Phone: (310) 814-2784  (David Thornhill, ATSP Program Manager)
    Phone: (310) 814-1973  (Phyllis Hundt, Admin/Contracts)
    Fax:     (310) 814-7524  (ATSP Program Office)

ATSP - Delivery Orders


Minimum and Maximum Values

  • Minimum Delivery Order: = $5,000 

Per FAR 52.216-19 (Order Limitations) the Government is not obligated to purchase and the Contractor is not obligated to furnish supplies or services in an amount less than $5,000.

  • Maximum Delivery Order: < $875,000,0001 

Per FAR 52.216-19 (Order Limitations) the Contractor is not obligated to honor any order for a single item in excess of $100,000,000.

The maximum Delivery Order value is the ATSP2 ceiling limit reduced by the total value of all contracts previously awarded under ATSP2.


ATSP - Ordering Procedures


You and your agency:

  • Request support via email or letter to DMEA
  • Define tasks (Contractual Engineering Task - CET)
  • Provide funding (MIPR or other appropriate document)
  • Review proposal; provide technical evaluation
  • Manage technical performance of tasks

DMEA:

  • Coordinates with you and Northrop Grumman Space Technology
  • Finalizes CET; prepares procurement package
  • Issues request for proposal (RFP)
  • Coordinates overall proposal technical evaluation
  • Negotiates and issues Delivery Order
  • Provides contractor oversight during task performance
  • Provides contract administration service

Material, labor hours and other direct costs, such as travel, are negotiated prior to the issuance of any Delivery Order.

  1. Fair Opportunity To Be Considered

If a CPFF, FFP, or T&M Delivery Order is to be issued and the proposal exceeds $500,000, the Contractor is required to certify, IAW 10 U.S.C. 2306a, that any cost or pricing data submitted is current, complete, and accurate. If a CPFF, FFP, or T&M Delivery Order is to be issued and the proposal is less than $500,000, no certification procedures are required.

Since the Contractor’s CPFF and FFP rates have been pre-negotiated and are covered by a certification set forth in the basic contract, no further certification of these rates is required.

Each time a proposal is submitted for work under the ATSP2 contract, the Contractor must certify whether or not it has delivered or is obligated to deliver to the Government under a contract or subcontract, the same or substantially the same technical data requested. If so, the contract or subcontract and place of delivery must be disclosed to the PCO in writing.

The following procedures are for all pricing arrangements:

Each ATSP2 Prime Contractor is provided a fair opportunity to be considered in accordance with FAR 16.504(a)(4)(iv) and 16.505(b)(1). The Contracting Officer has broad discretion in the selection of a Contractor (or Contractors) for each Delivery Order award and uses such criteria as the ability of an awardee to provide the level of quality required based on unique or specialized knowledge in the area under consideration; achievement of socio-economic goals; previous performance under earlier, similar, or related tasking; capacity to handle additional effort; marketing effort; cost; and/or other factors deemed relevant to the award of a Delivery Order. The DMEA Deputy Director is charged with the responsibility to ensure that all awardees are afforded a fair opportunity to be considered for award and has been designated the task order contract ombudsman. Written comments are to be addressed as follows:

ATSP2 Task Order Contract Ombudsman
Deputy Director
Defense Microelectronics Activity
4234 54th Street
McClellan, CA 95692-2100

  1. Identification of Government Furnished Property

Government furnished property will be cited on individual Delivery Orders.

  1. Organizational Conflict of Interest

The Contractor may gain access to proprietary information of other Companies during contract performance. To prevent conflicting roles that may bias the Contractor’s judgment or objectivity, or to preclude the Contractor from obtaining an unfair competitive advantage in concurrent or future acquisitions, the Contractor is required to:

  1. Protect other company’s proprietary information from unauthorized use or disclosure for as long as it is considered proprietary by the other company,
  2. Refrain from using the proprietary information for any purpose other than that for which it was furnished,
  3. Enter Company-to-Company agreements as necessary to comply, and
  4. Furnish copies of these agreements to the Contracting Officer for information purposes.

The above restrictions are included in all subcontracts, teaming arrangements, and other agreements calling for performance of work related to this contract, unless excused in writing by the Contracting Officer.

These agreements are not intended to protect information that is available to the Government or to the Contractor from other sources and furnished voluntarily without restriction.

The following descriptions or definitions apply:

  1. “Proprietary Information” means all information designated as proprietary in accordance with law and regulation, and held in confidence or disclosed under restriction to prevent uncontrolled distribution. Examples include limited or restricted data, trade secrets, computer software, classified information, and sensitive financial information that may appear in cost and pricing data.
  2. “Contractor” means the business entity receiving the award of this contract, its parents, affiliates, divisions, and subsidiaries.

Associate Contractor Agreements may be required on an “as needed” basis.

  1. Contract Security Classification Specification, DE Form 254 (IAW FAR 4.04)

Measures required to protect classified information, equipment, and facilities will be cited on individual Delivery Orders via an attached DD Form 254.

  1. Year 2000 (Y2K) Compliance

The Contractor warrants that any hardware or firmware (as those terms are generally defined) or a computer database, computer software, computer program(s), or commercial computer software (as those terms are defined in DFARS 252.227-7013 and 252.227-7014), products developed or delivered under this contract shall be able to correctly process date/time and date/time related data into and between the year 1999 and beyond January 1, 2000, including leap year calculations, to the extent that other products, used in combination with the product being acquired, properly exchanges date/time data with it. Processing dates and date related data include, but are not limited to, correctly calculating, comparing, and sequencing the date and date related data and are transparent to the user. Software products, individually and in combination, must successfully transition into the year 2000 with the correct system date, without human intervention, including leap year calculations. Software products, individually and in combination, must also provide correct results when moving forward or backward in time across the year 2000.


ATSP - Period of Performance


The ordering period for ATSP2 Delivery Orders is 84 months (7 years: Sep 1999 through Sep 2006).

Performance of tasks will be as specified on DD Form 1155 orders. In accordance with FAR 52.216-18 and 52.216-22, orders will be carried to completion provided sufficient funds are available and performance does not normally exceed 24 months beyond the ordering period (i.e., period of performance can extend through Sep 2008).

In the event completion of the order cannot be accomplished within the established time period, the order may be extended to a time and at terms agreeable to both parties.


ATPS - Pricing Arrangements


ATSP2 offers three pricing arrangements:

  • Cost Plus Fixed Fee (CPFF)
  • Firm Fixed Price (FFP)
  • Time & Materials (T&M)


The ordering period is through September 2006.

The performance period is through September 2008.

For the purpose of estimating a dollar value, Delivery Orders are priced in accordance with the pre-negotiated contract bid rates for the three pricing arrangements. A single Delivery Order contract may contain one, two, or all three of these pricing arrangements. Payment is made on the basis of actual costs incurred.

Any of the Contractor’s bid rates may be updated any time the ACO and the Contractor agree such an update is necessary to reasonably align the rates in the contract to the Contractor’s actual billing rates. Updated rates are added to the basic contract via modification and are utilized for new tasks. Rates utilized for existing tasks are not renegotiated.

The Contractor may re-propose existing labor rates that have been superceded by corporate restructuring, mergers and acquisitions and are no longer compliant with Cost Accounting Standards. Affected rates are submitted via an auditable rate package to the ACO. The ACO has been delegated the authority to maintain labor rates throughout the basic contract performance period.

  1. Cost Plus Fixed Fee (CPFF) Delivery Orders
  • Fee Percentage:      9.4%    (Pre-negotiated)

Applicable to all years in the contract period. In each CPFF Delivery Order, the fee is established as a firm fixed dollar amount rather than as a percentage. The Contractor is required to submit a proposal with an estimated price.

CPFF rates are loaded to include all indirect rates except for fee. At the time the order is placed, these rates are used to establish the estimated cost of the order. The total estimated cost (labor, material, indirect costs) is multiplied by the fee (profit percentage) to determine the fixed fee – total estimated cost times fixed fee percentage = fixed fee. The basic contract’s pre-negotiated fee percentage applies to all CPFF Delivery Orders awarded under the ATSP2 contract vehicle, and is in full compliance with CPFF fee limits established by Title 10 United States Code, Section 2306.

All Delivery Orders issued using the CPFF pricing arrangement are designated completion form IAW FAR 16.306(d)(1), unless otherwise stated in the individual Delivery Order. Per FAR 16.306(d)(3), a preference is made for the completion form when specific milestones can be adequately defined. Milestones reflect performance and must be accomplished within the period of performance for each Delivery Order issued.

  1. Firm Fixed Price (FFP) Delivery Orders
  • Profit Percentage – to be negotiated on each FFP Delivery Order

In each FFP Delivery Order, the profit is negotiated as a firm fixed dollar amount. The Contractor is required to submit a FFP proposal. Material, labor hours and other direct costs are negotiated prior to the issuance of a Delivery Order.

FFP rates are loaded to include all indirect rates except for profit. At the time the order is placed, these rates are used to establish the cost of the order. The total estimated cost (labor, material, indirect costs) of a Delivery Order is multiplied by the profit percentage negotiated for that Delivery Order to determine the firm fixed price for the order – total cost times negotiated profit percentage = fixed profit.

  1. Time & Material (T&M) Delivery Orders
  • Profit Percentage – negotiated on each T&M Delivery Order

In each T&M Delivery Order, the profit is negotiated as a firm fixed dollar amount. The Contractor is required to submit a proposal with an estimated price.

The T&M Delivery Order is priced in accordance with labor rates proposed in response to each Contractual Engineering Task (CET, i.e., statement of work) solicited to establish a ceiling price. The proposed rates are fully loaded to include all indirect rates plus profit.

At the time the T&M order is placed, these rates are used to establish a ceiling amount for the order.


ATSP - Time of Delivery


  • The delivery schedule is specified in each Delivery Order
  • F.O.B. point is negotiated with the ordering agency on each Delivery Order