Northrop Grumman awarded $13.2M contract for CISSS services by HHS CDC

Contract Overview

Contract Amount: $13,247,895 ($13.2M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2000-07-24

End Date: 2001-06-29

Contract Duration: 340 days

Daily Burn Rate: $39.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TRW/96-0056/CISSS

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TRW/96-0056/CISSS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. The duration of 340 days indicates a focused, short-term project or service delivery. 4. The contract was awarded by the Centers for Disease Control and Prevention, a key agency within HHS. 5. The specific service area (CISSS) is not detailed, limiting a precise understanding of the value delivered. 6. The contract value of $13.2 million is a significant investment for the specified duration.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the CISSS services provided. However, for a 340-day period, a $13.2 million award suggests a substantial scope of work. The Cost Plus Fixed Fee (CPFF) structure means the government pays the contractor's actual costs plus a fixed fee. While this can be appropriate for research and development or when costs are uncertain, it offers less incentive for cost savings compared to fixed-price contracts. Without comparable contracts for similar CISSS services, it's difficult to definitively assess if the pricing is competitive or represents excellent value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment. A competitive process is expected to drive down prices and encourage innovation as contractors vie for the award. The fact that it was fully competed suggests that the agency sought the best possible solution and price from the market.

Taxpayer Impact: A fully competed contract is generally favorable for taxpayers as it increases the likelihood of obtaining services at a fair market price, maximizing the value of federal dollars spent.

Public Impact

The primary beneficiary is likely the Centers for Disease Control and Prevention (CDC), which receives the CISSS services. The services delivered are related to CISSS, which could encompass a range of IT, data management, or scientific support functions critical to public health. The geographic impact is centered in Georgia, where the contract was awarded. Workforce implications may include employment opportunities for individuals with expertise relevant to CISSS within Northrop Grumman and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored.
Lack of specific details on CISSS services makes it difficult to assess performance metrics and true value.
The contract duration is relatively short, which might indicate a specific project phase rather than long-term support.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
Northrop Grumman is a large, established defense and technology contractor with significant resources.
The contract is managed by the CDC, a reputable agency with a mission critical to public health.

Sector Analysis

The contract falls within the broader Information Technology and professional services sector, specifically supporting a government agency's operational needs. The market for IT and specialized support services to federal agencies is substantial, with numerous large and small businesses competing for these contracts. This award to Northrop Grumman, a major player in the aerospace and defense industry, highlights the significant role large contractors play in providing complex solutions to government entities. Comparable spending benchmarks would depend heavily on the specific nature of CISSS services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and does not specify any small business subcontracting goals (ss: false). This suggests that the primary award went to a large business, Northrop Grumman. While large prime contracts can sometimes lead to subcontracting opportunities for small businesses, the absence of explicit set-aside or subcontracting requirements means there is no guaranteed benefit to the small business ecosystem from this specific award. Further investigation into subcontracting plans would be needed to assess the impact.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and specifically the Centers for Disease Control and Prevention (CDC). As a Cost Plus Fixed Fee contract, rigorous oversight of incurred costs and the contractor's performance against the fixed fee is crucial. Transparency would be enhanced by public reporting of contract performance and expenditures. The specific Inspector General for HHS would have jurisdiction over any investigations into fraud, waste, or abuse related to this contract.

Related Government Programs

HHS IT Services Contracts
CDC Public Health IT Support
Northrop Grumman Government Contracts
Cost Plus Fixed Fee IT Contracts
Federal Information Technology Services

Risk Flags

Cost Plus Fixed Fee contract type requires careful oversight to manage costs.
Lack of specific service details (CISSS) hinders a full value assessment.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. TRW/96-0056/CISSS

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2000-07-24. End: 2001-06-29.

What specific services fall under the CISSS designation for this contract?

The provided data abbreviates the service as 'CISSS' (TRW/96-0056/CISSS) without further elaboration. This acronym likely refers to a specific system, program, or set of services managed by the Centers for Disease Control and Prevention (CDC). Without additional context or documentation, it is impossible to determine the exact nature of these services. They could range from IT infrastructure support, data analysis and management, software development, cybersecurity, or specialized scientific support functions critical to the CDC's mission. Understanding the precise definition of CISSS is essential for a comprehensive assessment of the contract's value, performance, and impact.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not well-defined or involves significant uncertainty, such as research and development or complex IT projects. In a CPFF contract, the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of the actual costs incurred, incentivizing the contractor to control expenses. It also differs from cost-plus-incentive-fee (CPIF) contracts, which offer bonuses or penalties based on performance against targets. For services where performance outcomes are critical and costs are difficult to predict, CPFF can be appropriate, but it requires robust government oversight to manage costs and prevent overruns. If the CISSS services were more clearly defined with predictable outcomes, a fixed-price contract might have offered better value.

What is Northrop Grumman's track record with the CDC and HHS?

Northrop Grumman Systems Corporation is a major aerospace and defense contractor that also provides a wide range of technology and support services to government agencies, including the Department of Health and Human Services (HHS) and its various components like the Centers for Disease Control and Prevention (CDC). While this specific contract (TRW/96-0056/CISSS) was awarded in 2000, Northrop Grumman has a long history of securing and performing on numerous federal contracts. Assessing their overall track record would involve reviewing past performance evaluations, contract awards, and any reported issues or successes across their portfolio with HHS and the CDC. Given their size and experience, they generally possess the capabilities to handle complex government requirements, but individual contract performance can vary.

What were the historical spending patterns for CISSS services prior to this contract?

The provided data only includes details for this specific contract awarded in July 2000. Historical spending patterns for the 'CISSS' services prior to this award are not available within this dataset. To understand historical spending, one would need to access federal procurement databases (like FPDS or USASpending) and search for previous contracts awarded for the same or similar services, potentially under different contract vehicles or by different agencies if the service scope is broader. Analyzing prior spending would help establish a baseline, identify trends, and assess whether the $13.2 million award represents an increase, decrease, or stable level of investment in these services over time.

Are there any known risks associated with the Cost Plus Fixed Fee contract type in the context of public health IT?

Yes, Cost Plus Fixed Fee (CPFF) contracts carry inherent risks, particularly in the context of public health IT. A primary risk is the potential for cost escalation, as the contractor is reimbursed for actual costs. Without stringent oversight and clear performance metrics, costs can exceed initial estimates. This is especially relevant for IT projects where requirements can evolve or unforeseen technical challenges arise. Another risk is reduced incentive for efficiency; while a fixed fee provides profit, the direct link between cost savings and increased profit is weaker than in fixed-price contracts. For public health IT, where mission criticality is high, ensuring cost-effectiveness while maintaining quality and security is paramount. Effective management, detailed cost tracking, and regular performance reviews are essential to mitigate these risks.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 12900 FEDERAL SYSTEMS PARK DR, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,765,943

Exercised Options: $18,765,943

Current Obligation: $13,247,895

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSD200199600056I

IDV Type: IDC

Timeline