Northrop Grumman awarded $13.8M for custom computer programming services by CDC
Contract Overview
Contract Amount: $13,796,042 ($13.8M)
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: $31.7K/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 $13.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MULTIPLE CONTRACT TYPES Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract type is Cost Plus Fixed Fee, which can shift risk to the government. 3. Delivery order issued under a larger contract vehicle, indicating potential for follow-on work. 4. The duration of 435 days suggests a focused, short-term project. 5. The award amount is moderate for custom programming services in the federal sector.
Value Assessment
Rating: fair
The contract value of $13.8 million for custom computer programming services appears moderate. Benchmarking against similar contracts is challenging without more specific details on the scope of work. However, the Cost Plus Fixed Fee (CPFF) contract type, while common, can lead to higher costs for the government if not managed carefully, as it reimburses costs plus a fixed fee. The absence of a specific Price Cost Breakdown (PCB) makes a detailed value assessment difficult.
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 specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and innovation. The CDC's use of full and open competition suggests they sought the best value from the market.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and increasing the likelihood of obtaining the best value for public funds.
Public Impact
The Centers for Disease Control and Prevention (CDC) benefits from enhanced custom computer programming capabilities. Services delivered likely support critical public health information systems or data analysis. The geographic impact is centered in Georgia, where the contractor is located. Workforce implications include employment for skilled IT professionals at Northrop Grumman.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type may incentivize cost overruns.
- Limited transparency on specific performance metrics and deliverables.
- Potential for scope creep in custom development projects.
Positive Signals
- Awarded through full and open competition, indicating market validation.
- Northrop Grumman is a large, established defense and technology contractor.
- Contract duration suggests a defined project scope.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The federal IT market is vast, with agencies constantly seeking specialized software development to support their missions. Comparable spending benchmarks for custom programming can vary widely based on complexity, but this award is within a typical range for a significant project. The CDC's reliance on IT for data management and analysis makes this a crucial area of spending.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contractor, Northrop Grumman may have subcontracting opportunities for small businesses, but this is not explicitly detailed in the provided information. The absence of a small business set-aside suggests the primary focus was on obtaining specialized capabilities from a large, experienced provider.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the CDC. Performance monitoring, deliverable acceptance, and financial oversight are standard accountability measures. Transparency is often facilitated through contract databases like FPDS, though detailed performance reports are usually internal. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.
Related Government Programs
- CDC IT Modernization Programs
- Public Health Informatics Contracts
- Custom Software Development Services
- Northrop Grumman Federal Contracts
Risk Flags
- Cost Plus Fixed Fee contract type
- Lack of specific performance metrics in summary data
- Potential for cost overruns inherent in CPFF contracts
Tags
it, health-and-human-services, centers-for-disease-control-and-prevention, custom-computer-programming-services, northrop-grumman-systems-corporation, delivery-order, cost-plus-fixed-fee, full-and-open-competition, georgia, moderate-value
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $13.8 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 $13.8 million.
What is the period of performance?
Start: 2002-09-21. End: 2003-11-30.
What is the specific nature of the custom computer programming services provided under this contract?
The provided data indicates the contract is for 'Custom Computer Programming Services' (NAICS 541511) awarded to Northrop Grumman Systems Corporation by the Centers for Disease Control and Prevention (CDC). However, the specific nature of these services is not detailed. Typically, such contracts involve the design, development, modification, and testing of software tailored to unique government requirements. This could range from developing new public health data management systems, enhancing existing analytical tools, creating specialized reporting applications, or integrating disparate IT systems to improve data flow and analysis for public health initiatives.
How does the $13.8 million award compare to other custom programming contracts awarded by the CDC or similar agencies?
The $13.8 million award for custom computer programming services is a moderate-sized contract within the federal IT landscape. Without specific details on the scope and complexity, direct comparisons are difficult. However, federal agencies like the CDC frequently award contracts in the tens to hundreds of millions of dollars for large-scale IT development and modernization efforts. Smaller, more focused custom programming tasks might range from a few hundred thousand to a few million dollars. This $13.8 million award suggests a significant, but not massive, project, likely involving specialized development over a defined period, such as the 435-day duration indicated.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type used for this award?
The Cost Plus Fixed Fee (CPFF) contract type, used for this $13.8 million award, presents specific risks to the government. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. The primary risk is that the contractor has less incentive to control costs compared to fixed-price contracts, as their profit (the fee) is fixed regardless of the final cost. If costs escalate, the government bears the burden. Effective oversight, stringent cost monitoring, and clear definition of allowable costs are crucial to mitigate these risks and ensure value for money.
What is Northrop Grumman's track record with the CDC and in providing custom computer programming services?
Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in IT services, including custom software development. While this specific contract data doesn't detail their past performance with the CDC, large contractors like Northrop Grumman often hold numerous contracts across various federal agencies. Their track record generally includes large-scale system integration, software development, and IT support for complex government operations. For the CDC, this could involve work on disease surveillance systems, data analytics platforms, or health information exchange technologies. A deeper dive into contract history databases would reveal the extent and nature of their prior work with the CDC and their performance ratings on those contracts.
What does the contract duration of 435 days imply about the project's scope and complexity?
A contract duration of 435 days (approximately 14.5 months) for custom computer programming services suggests a project of moderate scope and complexity. It is long enough to accommodate significant development cycles, including requirements gathering, design, coding, testing, and initial deployment, but not so long as to indicate a multi-year, enterprise-wide system overhaul. This duration implies a focused effort, possibly for a specific module, application enhancement, or the development of a new, targeted system. It allows for iterative development and feedback loops, which are common in custom software projects, while also providing a defined timeframe for completion and cost control.
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: $54,228,515
Exercised Options: $54,228,515
Current Obligation: $13,796,042
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: 2023-02-26
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