HHS awarded Northrop Grumman $11M for custom programming, with a significant portion for Georgia
Contract Overview
Contract Amount: $10,986,253 ($11.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2002-09-21
End Date: 2003-11-30
Contract Duration: 435 days
Daily Burn Rate: $25.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: MULTIPLE CONTRACT TYPES
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30329
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $11.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MULTIPLE CONTRACT TYPES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract was relatively short, indicating a specific project or phase. 4. The award was a delivery order, suggesting it was part of a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 6. The contract was awarded to a large, established defense and aerospace contractor.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more detailed scope information. However, the total award of over $10.9 million for custom computer programming services over approximately 14 months suggests a substantial investment. Comparing it to similar custom programming contracts would require access to a broader dataset of government IT procurements. The Cost Plus Fixed Fee structure introduces inherent risk in cost control, potentially impacting overall value for money if not meticulously overseen.
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 a bid. This typically fosters a competitive environment, which can lead to better pricing and innovation. The number of bidders is not specified, but the designation implies a robust competition was intended and likely occurred, providing the government with multiple options to evaluate.
Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through competitive pressure and ensuring the government receives the best value available in the market.
Public Impact
The Centers for Disease Control and Prevention (CDC) likely benefited from enhanced custom computer programming services. The services delivered were related to custom software development, potentially for data analysis or system enhancement. A significant portion of the contract value was associated with the state of Georgia. The contract supported IT professionals and developers involved in custom programming.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fee, requiring stringent oversight.
- Lack of specific details on the scope of work makes it difficult to assess if the final product met all requirements effectively.
- The short duration might indicate a project that was completed, but without further information, it's hard to gauge long-term impact or success.
Positive Signals
- Awarded through full and open competition, suggesting a fair and competitive process.
- The contractor, Northrop Grumman, is a large and experienced entity in government contracting.
- The contract was a delivery order, implying it was part of a pre-established, potentially competitive, contract vehicle.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. The market for such services is vast and highly competitive, with numerous companies offering specialized development. Government spending in this area is substantial, driven by the need for tailored software solutions to manage data, improve operations, and enhance citizen services. Benchmarks for custom programming can vary widely based on complexity, duration, and required expertise.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Given the prime contractor is Northrop Grumman, a large corporation, the potential for small business participation would likely be through subcontracting opportunities if they were mandated or pursued by the prime. Without specific subcontracting plans or goals, the direct impact on the small business ecosystem is unclear.
Oversight & Accountability
Oversight for this contract would typically 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 and performance monitoring would be crucial to ensure costs remain reasonable and deliverables are met. Transparency would depend on the agency's reporting practices and the availability of contract details post-award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Custom Computer Programming Services
- IT Services
- Software Development
- Health IT
Risk Flags
- Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
- Lack of detailed scope of work makes performance assessment difficult.
- No specific performance metrics (KPIs) were identified in the data.
Tags
it-services, custom-computer-programming, northrop-grumman-systems-corporation, department-of-health-and-human-services, centers-for-disease-control-and-prevention, cost-plus-fixed-fee, full-and-open-competition, delivery-order, georgia, naics-541511, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $11.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. MULTIPLE CONTRACT TYPES
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 $11.0 million.
What is the period of performance?
Start: 2002-09-21. End: 2003-11-30.
What was the specific scope of work for these custom computer programming services?
The provided data indicates the NAICS code is 541511 (Custom Computer Programming Services) and the contract was awarded to Northrop Grumman Systems Corporation by the Department of Health and Human Services (HHS) for Centers for Disease Control and Prevention (CDC) needs. However, the specific scope of work, such as the type of software developed, the systems it was intended to support, or the specific problems it aimed to solve, is not detailed in the provided information. Understanding the scope is crucial for evaluating the contract's necessity, effectiveness, and value for money. Without this, it's difficult to determine if the $10.9 million investment yielded the intended outcomes or if the services were truly custom and unique.
How did the final cost compare to the initial estimates or projections for this contract?
The contract type is Cost Plus Fixed Fee (CPFF), which means the contractor is reimbursed for allowable costs plus a fixed fee representing profit. The provided data does not include initial cost estimates or projections, nor does it detail the final incurred costs versus the awarded amount. For a CPFF contract, it is essential to track actual costs against the estimated costs to ensure the fixed fee remains appropriate and that the overall project stays within budget expectations. Without this comparison, assessing cost control and potential overruns is not possible from the given data.
What was the performance history of Northrop Grumman Systems Corporation on similar contracts with HHS or CDC?
The provided data identifies Northrop Grumman Systems Corporation as the contractor but does not include information on their past performance on similar contracts with HHS or the CDC. A thorough assessment would require reviewing past performance evaluations, any documented issues, or successes on previous custom programming or IT service contracts awarded by these agencies. Northrop Grumman is a large, established defense and aerospace company with extensive government contracting experience, suggesting a general capability. However, specific performance metrics related to this type of service and agency are needed for a precise evaluation of their track record.
Were there any specific performance metrics or key performance indicators (KPIs) defined for this contract?
The available data does not specify any performance metrics or Key Performance Indicators (KPIs) that were established for this contract. For custom computer programming services, KPIs are vital for measuring the success and quality of the delivered software or services. Examples could include system uptime, bug resolution rates, user satisfaction, or adherence to project timelines. Without defined KPIs, it is challenging to objectively assess whether the contractor met the government's expectations and delivered the required value. The effectiveness of the contract's outcome remains largely unquantified.
How does the $10.9 million award compare to average spending on custom computer programming services by the CDC in the early 2000s?
The award of approximately $10.9 million for custom computer programming services by the CDC between 2002 and 2003 represents a significant investment for that period. To benchmark this, one would need to analyze historical CDC IT spending data and compare it to the average contract values for similar NAICS codes (541511) during that timeframe. Factors like inflation, the complexity of the projects undertaken, and the overall IT budget of the CDC would influence this comparison. Without access to broader historical spending data for the CDC's IT procurements in the early 2000s, it's difficult to definitively state whether this contract was high, low, or average relative to its peers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 12900 FEDERAL SYSTEMS PARK DR, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $59,185,594
Exercised Options: $59,185,594
Current Obligation: $10,986,253
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSD200200200555I
IDV Type: IDC
Timeline
Start Date: 2002-09-21
Current End Date: 2003-11-30
Potential End Date: 2003-11-30 00:00:00
Last Modified: 2023-02-15
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