HHS CDC Awards $16.4M Custom Computer Programming Services Contract to Northrop Grumman
Contract Overview
Contract Amount: $16,392,166 ($16.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2004-07-01
End Date: 2005-06-30
Contract Duration: 364 days
Daily Burn Rate: $45.0K/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 $16.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MULTIPLE CONTRACT TYPES Key points: 1. Contract awarded to a large, established defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. Spending is within the IT services sector, a common area for federal procurement.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure carries inherent risk for cost control. Benchmarking against similar custom programming services contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. However, the Cost Plus Fixed Fee award type may limit the effectiveness of competition in controlling final costs.
Taxpayer Impact: Taxpayer funds are utilized for custom computer programming services. The cost-plus nature of the contract warrants close monitoring to ensure value for money.
Public Impact
Public health initiatives supported by custom software development. Potential for improved data management and analysis within the CDC. Investment in IT infrastructure for critical government functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Large prime contractor may subcontract
- Limited visibility into specific programming tasks
Positive Signals
- Full and open competition
- Supports critical public health agency
- Clear period of performance
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Federal spending in this area is substantial, supporting various agency operations and modernization efforts.
Small Business Impact
The data indicates the prime contractor is Northrop Grumman Systems Corporation, a large business. There is no explicit information on small business participation or subcontracting goals within this award.
Oversight & Accountability
Oversight would typically involve regular reporting from the contractor on costs and progress, as well as review by the contracting officer and program managers at the CDC to ensure deliverables meet requirements.
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 structure
- Potential for cost overruns
- Lack of detailed service description
- Large prime contractor
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 $16.4 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 $16.4 million.
What is the period of performance?
Start: 2004-07-01. End: 2005-06-30.
What specific programming services were rendered and how did they align with the CDC's mission?
The contract was for custom computer programming services (NAICS 541511). While the specific services are not detailed, they likely supported the CDC's public health mission, potentially involving data analysis, system development, or software maintenance critical for disease surveillance, research, or operational efficiency.
What were the primary risks associated with the Cost Plus Fixed Fee contract type for this procurement?
The primary risk of a Cost Plus Fixed Fee (CPFF) contract is that the government pays the actual costs incurred by the contractor plus a predetermined fixed fee. This can incentivize the contractor to incur higher costs, as their fee remains constant, potentially leading to budget overruns if not managed diligently through robust oversight and clear performance metrics.
How effective was the full and open competition in achieving a competitive price for these services?
While full and open competition is designed to maximize competition and achieve fair and reasonable prices, the CPFF structure can mitigate some of its cost-saving benefits. The ultimate effectiveness depends on the number and quality of bids received, the clarity of the statement of work, and the government's ability to negotiate and manage the contract's cost components effectively.
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: $197,187,960
Exercised Options: $197,187,960
Current Obligation: $16,392,166
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: 2005-06-30
Potential End Date: 2005-06-30 00:00:00
Last Modified: 2022-12-30
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