HHS awards $19.8M for Custom Computer Programming Services to Northrop Grumman under full and open competition
Contract Overview
Contract Amount: $19,808,956 ($19.8M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2004-07-01
End Date: 2008-09-30
Contract Duration: 1,552 days
Daily Burn Rate: $12.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
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 $19.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MULTIPLE CONTRACT TYPES Key points: 1. Significant contract value of $19.8 million awarded. 2. Northrop Grumman Systems Corporation is the sole awardee. 3. Contract falls under Custom Computer Programming Services (NAICS 541511). 4. Awarded via Delivery Order under multiple contract types.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking is difficult without specific task details, but the overall value suggests a substantial project.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, it was a Delivery Order, suggesting it might be part of a larger, pre-existing contract vehicle.
Taxpayer Impact: Taxpayer funds were used in a competitive process, aiming for best value. The Cost Plus Fixed Fee structure requires diligent oversight to ensure cost efficiency.
Public Impact
Supports critical public health functions through IT services. Award to a major defense and aerospace contractor highlights IT capabilities. Long contract duration (over 4 years) suggests ongoing service needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Delivery Order structure may obscure true total contract value.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Awarded through full and open competition.
- Contract supports essential government functions.
- Awardee is a well-established corporation.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming. Spending in this area is substantial across government, with benchmarks varying widely based on service complexity and duration.
Small Business Impact
The awardee, Northrop Grumman Systems Corporation, is a large business. There is no indication of small business participation in this specific award, which is common for large prime contracts.
Oversight & Accountability
The use of a Cost Plus Fixed Fee contract type necessitates robust oversight from the Centers for Disease Control and Prevention to manage costs and ensure performance aligns with objectives.
Related Government Programs
- Custom Computer Programming Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Delivery Order awarded.
- Lack of detailed performance metrics.
- Potential for cost overruns.
Tags
custom-computer-programming-services, department-of-health-and-human-services, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $19.8 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 $19.8 million.
What is the period of performance?
Start: 2004-07-01. End: 2008-09-30.
What specific programming services were rendered, and how did they contribute to the CDC's mission?
The contract was for Custom Computer Programming Services (NAICS 541511). While specific details are not provided, such services typically involve developing, testing, and maintaining software applications. These could range from data management systems for public health surveillance to internal operational software, directly supporting the CDC's mission of protecting public health through disease control and prevention.
What were the key factors considered during the full and open competition that led to this award?
During a full and open competition, agencies evaluate proposals based on criteria outlined in the solicitation. For custom computer programming, these typically include technical approach, past performance, management capability, and price. The agency would have assessed which offer, including Northrop Grumman's, best met these requirements to achieve the government's objectives for the project.
How effectively was the Cost Plus Fixed Fee structure managed to ensure taxpayer value?
The effectiveness of Cost Plus Fixed Fee (CPFF) management hinges on stringent oversight. The CDC would need to closely monitor incurred costs, ensure they are reasonable and allocable, and verify that the fixed fee accurately reflects the contractor's effort and risk. Without detailed performance and cost reports, it's difficult to definitively assess the value achieved, but CPFF contracts inherently carry a higher risk of cost overruns if not meticulously managed.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
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: $444,979,505
Exercised Options: $422,238,557
Current Obligation: $19,808,956
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSD200200403409I
IDV Type: IDC
Timeline
Start Date: 2004-07-01
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2023-01-11
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