HHS awarded $12.7M for CISSS services to Northrop Grumman, with a 98-day duration

Contract Overview

Contract Amount: $12,731,641 ($12.7M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2001-06-30

End Date: 2001-10-06

Contract Duration: 98 days

Daily Burn Rate: $129.9K/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 $12.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: TRW/96-0056/CISSS Key points: 1. The contract's value appears reasonable given the short performance period and the specialized nature of IT services. 2. Full and open competition was utilized, suggesting a competitive bidding process that should have yielded fair pricing. 3. The contract type (Cost Plus Fixed Fee) can introduce cost-overrun risks if not closely monitored. 4. Performance context is limited due to the short duration, making long-term impact assessment difficult. 5. This contract falls within the IT services sector, supporting critical public health infrastructure. 6. The awardee, Northrop Grumman, is a large, established defense and aerospace contractor with significant IT capabilities.

Value Assessment

Rating: good

Benchmarking this specific contract is challenging due to its short duration and specialized nature. However, the total award amount of $12.7 million for a 98-day period suggests a significant daily expenditure. Without more detailed scope of work and performance metrics, a precise value-for-money assessment is difficult. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, requires diligent oversight to ensure costs remain aligned with the fixed fee and overall project goals. Compared to similar IT support contracts, the pricing appears within a plausible range for complex systems integration and support, assuming the scope was substantial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The number of bidders is not specified in the provided data, but the use of full and open competition generally leads to more robust price discovery and a higher likelihood of selecting the most advantageous offer for the government.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to the pressure of multiple bidders vying for the contract.

Public Impact

The primary beneficiaries are likely the Centers for Disease Control and Prevention (CDC) and the Department of Health and Human Services (HHS), receiving critical IT support services. The services delivered likely involve the maintenance, enhancement, or support of the CISSS (likely a health information system or data management platform). The geographic impact is primarily within the operational scope of the CDC, likely centered in Georgia where the contract is noted as being performed. Workforce implications could include specialized IT professionals employed by Northrop Grumman to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to scope creep and increased costs if not managed tightly.
The short duration limits the ability to fully assess long-term performance and contractor reliability.
Lack of specific details on the CISSS system makes it hard to gauge the criticality and complexity of the support provided.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive selection process.
The awardee, Northrop Grumman, is a large, reputable company with extensive experience in government contracting and IT services.
The contract supports a critical federal agency (HHS/CDC), indicating alignment with public health objectives.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on systems support and integration for a federal health agency. The IT services market is vast, encompassing software development, hardware maintenance, cloud services, and cybersecurity. Federal spending in this area is substantial, driven by the need to modernize legacy systems, enhance data analytics capabilities, and ensure secure information management. Comparable spending benchmarks for IT support contracts can vary widely based on scope, duration, and complexity, but contracts in the millions of dollars for specialized support are common.

Small Business Impact

The data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss) noted for this contract. This suggests that the contract was not specifically targeted towards small businesses. Consequently, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The primary contractor, Northrop Grumman, is a large corporation, and while they may engage small businesses in their broader operations, this specific award does not appear to have a small business focus.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC). As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the agreed-upon fixed fee and ensure cost reasonableness. Accountability measures would be tied to the contract's performance work statement and delivery schedules. Transparency is generally facilitated through federal contract databases like FPDS, where basic award information is publicly available. The Inspector General for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

HHS IT Modernization Initiatives
CDC Public Health Data Systems
Federal Health Information Exchange Programs
Governmentwide IT Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Short contract duration limits long-term performance assessment.
Lack of specific service details hinders in-depth value analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.7 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 $12.7 million.

What is the period of performance?

Start: 2001-06-30. End: 2001-10-06.

What specific services did Northrop Grumman provide under contract TRW/96-0056/CISSS?

The provided data does not detail the specific services rendered under contract TRW/96-0056/CISSS. However, given the awardee (Northrop Grumman Systems Corporation), the agency (HHS/CDC), and the contract type (Cost Plus Fixed Fee), it is highly probable that the services involved complex information technology support. This could include system development, integration, maintenance, data management, or specialized IT consulting related to the CISSS (likely a critical information system for the CDC). The short duration of 98 days suggests a focused task or a bridge contract rather than a long-term development project. Further details would require accessing the contract's statement of work or performance reports.

How does the $12.7 million award compare to similar IT support contracts for federal health agencies?

Comparing the $12.7 million award for a 98-day period requires context regarding the scope and complexity of the services. On a daily basis, this contract represents approximately $129,590 per day ($12.7M / 98 days). This rate is substantial and indicative of highly specialized IT support, potentially involving critical infrastructure or complex data systems. Federal IT support contracts can range from tens of thousands to hundreds of millions of dollars annually. For a short-term, specialized engagement supporting an agency like the CDC, this award amount appears significant but not necessarily out of line, especially if it involved emergency support, critical system upgrades, or specialized expertise not readily available elsewhere. Benchmarking requires detailed comparison of service scope, deliverables, and performance periods.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract like this one?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract revolve around cost control and potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While the fee is fixed, the total cost is not. This can incentivize contractors to incur higher costs if they believe it leads to a larger overall payment (cost + fixed fee), especially if oversight is lax. For the government, the risk is paying more than necessary if costs escalate beyond initial projections. Effective management requires stringent monitoring of allowable costs, clear definition of the scope of work, and robust negotiation of the fixed fee to ensure it adequately compensates the contractor for the effort without excessive profit margins. The short duration here might mitigate some long-term cost escalation risks but emphasizes the need for diligent oversight during the performance period.

What does the 'full and open competition' designation imply for the value and quality of services received?

The designation of 'full and open competition' implies that the government solicited proposals from all interested and capable sources, providing a level playing field for potential bidders. This process is designed to maximize competition, which theoretically leads to the best value for the government. Value is achieved through competitive pricing, where multiple companies vie to offer the most attractive combination of cost and technical merit. Quality is also expected to be higher as contractors strive to differentiate themselves and secure future work. While the data doesn't specify the number of bidders, the process itself suggests that the selected contractor, Northrop Grumman, offered terms deemed most advantageous compared to other potential providers, thereby enhancing the likelihood of receiving good value and quality services.

Given Northrop Grumman's background, what is their likely capability in delivering IT services for the CDC?

Northrop Grumman Systems Corporation is a major global aerospace and defense technology company with extensive capabilities in information technology, cybersecurity, and systems integration. They have a long history of supporting complex government programs, including those for defense, intelligence, and civilian agencies. Their experience likely includes managing large-scale IT infrastructure, developing and maintaining sophisticated software systems, and handling sensitive data. For the CDC, a federal health agency reliant on robust IT infrastructure for disease surveillance, data analysis, and public health communication, Northrop Grumman's established expertise and resources suggest a strong capability to deliver the required IT services effectively and reliably, even for specialized public health applications.

What is the significance of the contract being performed in Georgia (SN: GEORGIA)?

The notation 'SN: GEORGIA' indicates that the primary place of performance for this contract was Georgia. For the Centers for Disease Control and Prevention (CDC), which is headquartered in Atlanta, Georgia, this suggests that the contract work was likely performed in close proximity to the agency's main facilities. This geographic alignment can facilitate collaboration, oversight, and communication between the government personnel and the contractor's team. It may also indicate that the services provided were directly related to CDC operations based in Georgia, such as supporting specific IT systems or projects managed from their headquarters or regional offices within the state.

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: $16,038,685

Exercised Options: $16,038,685

Current Obligation: $12,731,641

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSD200199600056I

IDV Type: IDC

Timeline