Northrop Grumman awarded $12.7M for custom computer programming services by HHS CDC

Contract Overview

Contract Amount: $12,700,976 ($12.7M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2006-06-15

End Date: 2007-06-30

Contract Duration: 380 days

Daily Burn Rate: $33.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

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 $12.7 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 Firm Fixed Price, which shifts cost risk to the contractor. 3. Delivery Order awarded under a larger contract vehicle, indicating potential for follow-on work. 4. The contract duration of 380 days suggests a focused, short-to-medium term project. 5. The award amount is relatively modest for a large federal contract, potentially indicating a specific scope. 6. The contractor, Northrop Grumman, is a major defense and aerospace company, suggesting significant capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the underlying contract and the precise services rendered. However, the $12.7 million award for custom computer programming over approximately one year suggests a moderate investment. Comparing it to similar custom programming contracts would require detailed analysis of scope, complexity, and contractor overhead. The firm fixed price nature provides cost certainty for the government, but the ultimate value depends on the quality and effectiveness of the delivered software.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that it was a delivery order suggests it was likely competed as part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar multiple-award vehicle. The number of bidders is not specified, but full and open competition generally promotes price discovery and allows the government to select the best value offer.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services.

Public Impact

The Centers for Disease Control and Prevention (CDC) is the primary beneficiary, receiving custom computer programming services. The services delivered are likely related to data management, analysis, or software development crucial for public health initiatives. The geographic impact is primarily within the United States, supporting federal agency operations. Workforce implications may include specialized IT professionals employed by Northrop Grumman to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed price scope is not well-defined.
Risk of vendor lock-in if the custom software is highly proprietary.
Dependence on a single large contractor for critical IT services.

Positive Signals

Firm fixed price contract shifts cost risk to the contractor.
Awarded through full and open competition, suggesting a competitive market.
Northrop Grumman is a reputable contractor with extensive experience.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511). This is a large and dynamic sector supporting various government functions. Federal spending in IT services, including custom programming, is substantial, often driven by the need for specialized software solutions to manage data, improve efficiency, and support mission-critical operations. Comparable spending benchmarks would depend on the specific nature of the programming required, such as database development, application modernization, or system integration.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, it was not specifically targeted towards small businesses. The prime contractor, Northrop Grumman, is a large corporation. There is no explicit information on subcontracting plans for small businesses within this specific delivery order, though large prime contractors often engage small businesses for specialized tasks under their broader subcontracting programs.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program's technical point of contact within the CDC. As a delivery order under a larger contract, it inherits the oversight mechanisms of that parent contract. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Custom Computer Programming Services
Information Technology Services
Software Development
Federal IT Procurement
Centers for Disease Control and Prevention Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of inadequate performance or quality.
Dependence on contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $12.7 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 $12.7 million.

What is the period of performance?

Start: 2006-06-15. End: 2007-06-30.

What specific custom computer programming services were delivered under this contract?

The provided data indicates the contract was for 'Custom Computer Programming Services' under NAICS code 541511. However, the specific nature of these services is not detailed. Typically, this could encompass a wide range of activities such as developing new software applications, modifying existing software, integrating different software systems, database development, or creating specialized algorithms. Without further documentation, such as the Statement of Work (SOW) or contract line item details, it is impossible to ascertain the precise technical deliverables. These services are crucial for agencies like the CDC to manage public health data, develop analytical tools, or enhance their internal IT infrastructure.

How does the $12.7 million award compare to typical spending for similar custom programming contracts at the CDC?

Comparing this $12.7 million award to typical CDC spending requires context on the scope and duration. This amount, awarded for a 380-day period (approximately one year), suggests a significant but not exceptionally large project for a federal agency. The CDC often engages in large-scale IT projects related to data management, disease surveillance, and research. A single-year project of this magnitude could represent a substantial investment in a specific software development initiative. However, without knowing the complexity, number of users, or criticality of the software being developed, a direct comparison is difficult. The CDC's overall IT budget runs into hundreds of millions, making this a component rather than a dominant expenditure.

What are the key risks associated with this contract for the government?

Key risks for the government include potential scope creep if the requirements are not clearly defined, leading to cost increases beyond the fixed price if change orders are necessary. There's also the risk of the delivered software not meeting performance expectations or requiring extensive post-delivery modifications, which could incur additional costs or delays. Dependence on Northrop Grumman for critical functionality could pose a risk if the contractor faces financial instability or decides to discontinue support. Furthermore, if the custom software is not well-documented or easily transferable, the government might face challenges transitioning to a new system or contractor in the future.

What is Northrop Grumman's track record with federal custom programming contracts?

Northrop Grumman Systems Corporation is a major aerospace and defense technology company with a long history of performing complex IT and software development contracts for the U.S. federal government across various agencies. They have extensive experience in areas like systems integration, cybersecurity, data analytics, and software engineering. While this specific award is for $12.7 million, the company routinely handles much larger contracts. Their track record generally indicates a capacity to deliver sophisticated technical solutions. However, like any large contractor, performance can vary by specific project, team, and agency requirements. Reviewing past performance evaluations and contract histories would provide a more granular understanding of their specific success rates in custom programming.

What does the 'Delivery Order' designation imply about this contract?

The 'Delivery Order' (aw: DELIVERY ORDER) designation signifies that this award is a task order issued under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that a broader contract was previously established, likely through a competitive process, allowing the government to issue multiple delivery orders for specific services or products up to a certain ceiling amount. This approach provides flexibility for the agency to procure services as needed without having to conduct a full, separate procurement for each individual requirement. It streamlines the acquisition process for recurring or project-based needs.

How does the 'Firm Fixed Price' contract type affect cost management?

The 'Firm Fixed Price' (pt: FIRM FIXED PRICE) contract type is advantageous for cost management as it places the primary responsibility for cost overruns on the contractor, Northrop Grumman. The agreed-upon price is fixed, regardless of the contractor's actual costs incurred in performing the work. This provides the government with cost certainty and predictability. However, it also means the contractor must accurately estimate all costs, including labor, materials, and overhead, and build in a contingency. If the contractor underestimates costs, their profit margin will decrease. Conversely, if they manage costs effectively, their profit will increase. This structure incentivizes the contractor to control costs and perform efficiently.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $22,432,779

Exercised Options: $19,615,607

Current Obligation: $12,700,976

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSD200200403409I

IDV Type: IDC

Timeline