Northrop Grumman awarded $13M+ for custom computer programming services by HHS CDC
Contract Overview
Contract Amount: $12,959,120 ($13.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2003-09-16
End Date: 2004-11-30
Contract Duration: 441 days
Daily Burn Rate: $29.4K/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 $13.0 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 incentivize cost overruns. 3. The contract duration was 441 days, indicating a medium-term project. 4. The award was made to a large, established defense contractor, Northrop Grumman. 5. The specific NAICS code (541511) points to custom computer programming services. 6. The contract was a delivery order, implying it was part of a larger contract vehicle.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more detailed service descriptions and performance metrics. The Cost Plus Fixed Fee (CPFF) contract type, while common, carries inherent risks of cost escalation if not managed tightly. Comparing this to similar custom programming contracts would require access to a broader dataset of pricing and scope. The total award amount of over $13 million for a 441-day period suggests a significant investment in IT services.
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 method generally promotes a competitive environment, which can lead to better pricing and service offerings for the government. The open nature of the competition suggests that the agency sought the best value proposition available in the market.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government explored multiple options to secure the best deal for these custom computer programming services.
Public Impact
The Centers for Disease Control and Prevention (CDC) benefits from enhanced custom computer programming capabilities. These services likely support critical public health IT infrastructure and data management. The geographic impact is primarily within Georgia, where the contract was managed. The workforce implications involve skilled IT professionals contributing to public health initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can lead to higher costs if not managed effectively.
- Lack of specific performance metrics makes it difficult to assess true value for money.
- The award to a large, established contractor may limit opportunities for smaller, specialized firms.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- The contract supports critical IT functions for the CDC, a vital public health agency.
- The fixed fee component of the CPFF contract provides some cost certainty.
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 large and small businesses offering specialized expertise. The CDC's need for these services aligns with the broader trend of government agencies investing in IT modernization and custom software development to meet evolving operational demands and improve service delivery.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large award to a major contractor, it is unlikely that significant subcontracting opportunities for small businesses were mandated, though not explicitly ruled out. This contract's structure may not have prioritized direct small business participation.
Oversight & Accountability
Oversight for this contract would typically fall under the Centers for Disease Control and Prevention's contracting officers and program managers. The Department of Health and Human Services also has an Office of Inspector General (OIG) that provides audit and investigative oversight for federal programs. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal.
Related Government Programs
- Custom Computer Programming Services
- Information Technology Services
- Health IT Contracts
- Federal IT Modernization
Risk Flags
- Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
- Limited information on specific performance metrics and outcomes.
- Potential for contractor to prioritize profit over efficiency due to CPFF structure.
Tags
it-services, custom-computer-programming, northrop-grumman, department-of-health-and-human-services, centers-for-disease-control-and-prevention, georgia, full-and-open-competition, delivery-order, cost-plus-fixed-fee, large-contractor, health-it
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $13.0 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 $13.0 million.
What is the period of performance?
Start: 2003-09-16. End: 2004-11-30.
What was the specific nature of the custom computer programming services provided under this contract?
The provided data indicates the contract (NAICS 541511) was for 'Custom Computer Programming Services.' However, the specific nature of these services is not detailed. Typically, this could encompass software development, system integration, database management, application maintenance, or the creation of specialized algorithms. Given the agency is the CDC, these services likely supported public health data systems, disease surveillance platforms, or internal IT infrastructure critical for the agency's mission. Further details would be found in the contract's statement of work.
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for similar IT services?
Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or is expected to evolve. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but carries a higher risk of cost overruns for the government if costs exceed estimates. It is generally considered less advantageous for the government than FFP when requirements are well-defined. Other arrangements like Time and Materials (T&M) or Cost Plus Incentive Fee (CPIF) also exist, each with different risk and flexibility profiles.
What is the typical track record of Northrop Grumman Systems Corporation in delivering custom computer programming services to federal agencies?
Northrop Grumman Systems Corporation is a major defense contractor with extensive experience across various federal agencies, including health and civilian sectors. While primarily known for defense systems, they also possess significant IT capabilities. Their track record in custom computer programming is generally robust, characterized by large-scale, complex projects. However, like any large contractor, they have been involved in contracts that faced scrutiny regarding cost, schedule, or performance. A detailed assessment would require analyzing specific past performance reviews and contract outcomes relevant to IT services.
What does the 'Delivery Order' (aw: DELIVERY ORDER) designation imply about this contract?
The 'Delivery Order' designation signifies that this contract was likely issued under an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. Instead of a single, large contract, agencies often use IDIQs to procure a range of services or supplies over time through individual task orders or delivery orders. This allows for flexibility and streamlined procurement. Therefore, this $13M award represents one specific order placed against a potentially larger, pre-established contract framework.
How does the contract's duration (441 days) compare to the average duration for similar custom programming contracts?
A duration of 441 days, approximately 14.5 months, is a moderate length for a custom computer programming project. Shorter projects might range from a few months for specific enhancements, while very large system overhauls or long-term support contracts could extend for several years. This duration suggests a project of substantial scope but not necessarily a multi-year, enterprise-wide system development effort. Benchmarking against similar NAICS 541511 contracts awarded by HHS or other agencies would provide a more precise comparison.
What are the potential risks associated with a Cost Plus Fixed Fee contract for the government?
The primary risk for the government with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. Since the contractor is reimbursed for actual costs incurred, there is less incentive to control expenses compared to a Firm-Fixed-Price contract. If the initial cost estimates are inaccurate or if unforeseen issues arise, the total cost to the government can significantly exceed the original budget. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are crucial to mitigate these risks and ensure value for money.
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: $78,304,464
Exercised Options: $78,304,464
Current Obligation: $12,959,120
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSD200200200555I
IDV Type: IDC
Timeline
Start Date: 2003-09-16
Current End Date: 2004-11-30
Potential End Date: 2004-11-30 00:00:00
Last Modified: 2023-02-26
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