Northrop Grumman awarded $10.56M contract for custom computer programming services by HHS CDC
Contract Overview
Contract Amount: $10,563,803 ($10.6M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2003-09-15
End Date: 2008-06-30
Contract Duration: 1,750 days
Daily Burn Rate: $6.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: NORTHRUP GRUMMAN 200-2003-03152
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $10.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: NORTHRUP GRUMMAN 200-2003-03152 Key points: 1. Contract awarded for custom computer programming, a critical service for data analysis and system development. 2. The contract duration of 1750 days suggests a long-term project requiring sustained development effort. 3. Awarded under full and open competition, indicating a broad market solicitation. 4. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, balancing flexibility with cost control. 5. The contract was awarded to a single vendor, Northrop Grumman Systems Corporation. 6. The contract's value is substantial, reflecting the complexity and scope of custom programming needs. 7. The contract was awarded by the Centers for Disease Control and Prevention (CDC), a key agency within HHS. 8. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services.
Value Assessment
Rating: fair
The contract value of $10.56 million over approximately 4.8 years averages to about $2.2 million per year. Benchmarking this against similar custom computer programming contracts requires detailed analysis of scope and complexity. However, for a definitive contract of this duration and awarded under full and open competition, the pricing appears within a reasonable range, though a precise value-for-money assessment would necessitate comparison with specific service level agreements and deliverables.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that all responsible sources were permitted to submit a bid. The number of bidders is not specified in the provided data, but the competition type implies a robust solicitation process. This approach is generally expected to foster price discovery and potentially lead to more competitive pricing for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and potentially lowering the overall cost of the services procured.
Public Impact
The Centers for Disease Control and Prevention (CDC) benefits from this contract by acquiring essential custom computer programming services. These services are crucial for developing and maintaining the sophisticated IT systems required for public health data analysis, disease surveillance, and outbreak response. The geographic impact is likely national, supporting CDC's mission across the United States. Workforce implications may include the need for specialized IT professionals within the CDC or reliance on the contractor's skilled workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently, as the contractor is reimbursed for costs incurred.
- The long duration of the contract (1750 days) could present challenges in adapting to rapidly evolving technological landscapes.
- Reliance on a single contractor for custom programming may create vendor lock-in and limit future flexibility.
Positive Signals
- Awarded under full and open competition, which typically drives better value and wider market participation.
- The contract is with a well-established defense and aerospace company, Northrop Grumman, suggesting a high level of technical capability.
- The Cost Plus Fixed Fee structure, while requiring oversight, provides a defined profit margin for the contractor, which can incentivize performance.
Sector Analysis
The IT services sector, specifically custom computer programming, is a significant area of federal spending. This contract falls under the broader category of professional, scientific, and technical services. Federal spending in this area supports a wide range of government functions, from IT modernization to data analytics and cybersecurity. Comparable spending benchmarks would depend on the specific nature of the custom programming, but the overall IT services market is vast, with government contracts forming a substantial portion.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications mandated by small business set-aside requirements. The primary contractor, Northrop Grumman, is a large business, and their subcontracting practices would be governed by general federal acquisition regulations rather than specific small business set-aside goals for this particular award.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the CDC. Accountability measures are inherent in the contract terms, including performance standards and deliverables. Transparency is facilitated through contract databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- HHS IT Modernization Initiatives
- CDC Data Management Systems
- Public Health Informatics Contracts
- Custom Software Development for Government Agencies
- Centers for Disease Control and Prevention IT Support
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Risk of technological obsolescence over the contract's long duration.
- Need for robust oversight to ensure performance and cost control.
Tags
it-services, custom-computer-programming, department-of-health-and-human-services, centers-for-disease-control-and-prevention, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, northrop-grumman, georgia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $10.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. NORTHRUP GRUMMAN 200-2003-03152
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 $10.6 million.
What is the period of performance?
Start: 2003-09-15. End: 2008-06-30.
What is the specific nature of the custom computer programming services being provided under this contract?
The provided data indicates the NAICS code is 541511, which covers Custom Computer Programming Services. This generally includes writing, modifying, testing, and supporting software to meet the needs of a particular customer. For the CDC, these services could range from developing new public health surveillance systems, enhancing existing data analysis platforms, creating custom reporting tools, or integrating disparate data sources to improve disease tracking and response capabilities. Without more specific details on the SOW (Statement of Work), the exact applications remain broad but are fundamentally tied to the CDC's mission of protecting public health.
How does the $10.56 million contract value compare to other custom programming contracts awarded by the CDC or HHS?
A direct comparison of the $10.56 million contract value requires access to a comprehensive database of similar contracts, including their scope, duration, and specific services. However, for a definitive contract spanning nearly five years (1750 days), this value suggests a significant project. Many federal custom programming contracts can range from hundreds of thousands to tens of millions of dollars, depending on complexity and duration. The CDC, being a major public health agency, often requires substantial IT investments. This contract appears to be a mid-to-large size award within the context of federal IT procurements for specialized programming.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?
CPFF contracts, while offering flexibility, carry inherent risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as all allowable costs are reimbursed. If the fixed fee is too high or the oversight is lax, costs can escalate beyond initial expectations. For a contract of this duration (1750 days), there's also the risk of scope creep, where the project's requirements evolve significantly, potentially leading to renegotiations or disputes. Effective management, clear performance metrics, and diligent oversight by the contracting officer's representative (COR) are crucial to mitigate these risks and ensure value for money.
What is Northrop Grumman's track record in providing custom computer programming services to federal agencies, particularly within the health sector?
Northrop Grumman is a large, established defense contractor with extensive experience across various technology domains, including IT services and software development. While their primary focus has historically been defense and aerospace, they have a significant presence in providing IT solutions to civilian agencies, including those in the health sector. Their track record typically involves large-scale system integration, cybersecurity, and complex software engineering. For custom programming specifically within the health sector, their experience would likely involve developing and maintaining systems for health IT, data analytics, and potentially research support, aligning with the needs of agencies like the CDC.
How has federal spending on custom computer programming services (NAICS 541511) trended over the past decade, and where does this contract fit?
Federal spending on custom computer programming services (NAICS 541511) has generally seen a steady increase over the past decade, driven by the government's ongoing need to modernize legacy IT systems, enhance data analytics capabilities, and develop new digital services. Agencies across the board, including HHS, rely heavily on these services. This $10.56 million contract, awarded in 2003 for a period extending to 2008, represents a significant investment for its time. While specific trend data requires detailed analysis, such awards are typical for agencies like the CDC undertaking substantial IT development projects to support their critical public health missions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 2003Q00949
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 12011 SUNSET HILLS RD, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $266,564,565
Exercised Options: $171,819,312
Current Obligation: $10,563,803
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2003-09-15
Current End Date: 2008-06-30
Potential End Date: 2008-06-30 00:00:00
Last Modified: 2023-04-25
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