HHS CDC Awards $26.6M for Custom Computer Programming Services to Northrop Grumman

Contract Overview

Contract Amount: $26,608,579 ($26.6M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2004-07-01

End Date: 2007-03-08

Contract Duration: 980 days

Daily Burn Rate: $27.2K/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 $26.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MULTIPLE CONTRACT TYPES Key points: 1. Significant contract value of $26.6 million awarded. 2. Northrop Grumman Systems Corporation is the primary contractor. 3. Full and open competition was utilized. 4. Contract covers custom computer programming services.

Value Assessment

Rating: good

The contract was awarded under a Cost Plus Fixed Fee (CPFF) pricing structure. While CPFF can offer flexibility, it requires careful monitoring to ensure cost efficiency compared to fixed-price contracts for similar custom programming services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust process for discovering the best value and price. This method generally leads to more competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for service providers.

Public Impact

Supports critical public health functions through IT services. Ensures availability of specialized programming expertise for CDC. Potential for long-term IT infrastructure development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee pricing requires diligent oversight to manage costs effectively.
  • Contract duration of nearly three years necessitates ongoing performance monitoring.

Positive Signals

  • Full and open competition indicates a competitive bidding process.
  • Award to a large, established contractor like Northrop Grumman suggests reliability.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming. Spending in this area is crucial for government agencies to maintain and upgrade their digital infrastructure and services.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor is a large corporation. There is no information on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract was awarded under a 'GA' (Georgia) state code, suggesting potential state-level oversight or involvement. Further review of specific oversight mechanisms for CPFF contracts is recommended.

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 pricing can lead to cost overruns if not managed strictly.
  • Lack of detailed performance metrics in the provided data.
  • No information on small business participation or subcontracting.
  • Potential for scope creep in custom programming contracts.

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 $26.6 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 $26.6 million.

What is the period of performance?

Start: 2004-07-01. End: 2007-03-08.

What was the final cost compared to the initial estimate for this Cost Plus Fixed Fee contract?

The provided data does not include the final cost or a comparison to initial estimates for this Cost Plus Fixed Fee contract. To assess value, a review of the contract's final expenditure against its ceiling and the delivered outcomes would be necessary. Understanding the fixed fee component is also crucial for evaluating contractor profit margins.

Were there any performance issues or contract modifications during the contract's lifecycle?

The data does not detail performance issues or modifications. For a comprehensive risk assessment, it would be important to examine contract performance reports, any issued change orders, and the reasons behind them. Significant modifications could indicate scope creep or unforeseen challenges impacting cost and schedule.

How did the pricing from Northrop Grumman compare to other bids received during the full and open competition?

The data does not provide details on other bids received. To assess the effectiveness of the competition and the pricing, a comparison of Northrop Grumman's bid against the proposals of other qualified bidders would be required. This would help determine if the chosen price was indeed competitive and represented good value.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP 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: $219,190,326

Exercised Options: $219,190,326

Current Obligation: $26,608,579

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: 2007-03-08

Potential End Date: 2007-03-08 00:00:00

Last Modified: 2023-01-10

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