Negotiation of Contract Termination with the State of Tennessee

Client Type: Public Company

We represented Northrup Grumman in its negotiations with the State of Tennessee to terminate a contract for development and implementation of a computer system to determine eligibility for Tennessee’s Medicaid program known as TennCare. The contract was awarded to Northrop Grumman in December 2012. Northrop Grumman’s proposed and contract price for the project was $35,700,000, roughly 60% of the amount of the next lowest proposal in the competitive procurement. In 2015, following a third-party assessment to review the status of the project, TennCare announced that it and Northrup Grumman had mutually agreed to terminate the contract and that it would move forward with the process to select a new vendor.

Northrop Grumman (NYSE: NOC) is a leading global security company providing innovative systems, products and solutions to government and commercial customers worldwide.

We represented Northrup Grumman in its negotiations with the State of Tennessee to terminate a contract for development and implementation of a computer system to determine eligibility for Tennessee’s Medicaid program known as TennCare. The contract was awarded to Northrop Grumman in December 2012. Northrop Grumman’s proposed and contract price for the project was $35,700,000, roughly 60% of the amount of the next lowest proposal in the competitive procurement. In 2015, following a third-party assessment to review the status of the project, TennCare announced that it and Northrup Grumman had mutually agreed to terminate the contract and that it would move forward with the process to select a new vendor.

Northrop Grumman (NYSE: NOC) is a leading global security company providing innovative systems, products and solutions to government and commercial customers worldwide.