HHS awards $58.3M for Custom Computer Programming Services to Northrop Grumman via Full and Open Competition

Contract Overview

Contract Amount: $58,297,603 ($58.3M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2006-07-01

End Date: 2011-11-04

Contract Duration: 1,952 days

Daily Burn Rate: $29.9K/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 $58.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MULTIPLE CONTRACT TYPES Key points: 1. Significant contract value of $58.3 million awarded. 2. Northrop Grumman Systems Corporation is the primary contractor. 3. Contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. Services fall under Custom Computer Programming, a key IT sector.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee structure can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar custom programming services is difficult without specific task details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee award type may still allow for costs to exceed initial expectations.

Taxpayer Impact: Taxpayer funds are utilized for custom programming services, with the efficiency dependent on effective cost control and delivery of required services.

Public Impact

Public health initiatives supported by custom software development. Investment in IT infrastructure for disease control and prevention. Potential for improved data management and analysis in public health.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee structure
  • Long contract duration (1952 days)

Positive Signals

  • Full and open competition
  • Awarded by a major federal agency (HHS)

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming. Federal spending in this area is substantial, supporting agency operations and modernization efforts.

Small Business Impact

The data indicates this contract was not awarded to small businesses, suggesting a focus on large prime contractors for this specific requirement.

Oversight & Accountability

Oversight would focus on the management of the Cost Plus Fixed Fee structure to ensure costs remain reasonable and that the delivered services meet the CDC's needs effectively.

Related Government Programs

  • Custom Computer Programming Services
  • Department of Health and Human Services Contracting
  • Centers for Disease Control and Prevention Programs

Risk Flags

  • Potential for cost overruns due to CPFF structure
  • Lack of specific service details limits value assessment
  • Long contract duration may indicate complexity or potential for scope creep
  • No small business participation noted

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 $58.3 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 $58.3 million.

What is the period of performance?

Start: 2006-07-01. End: 2011-11-04.

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

The provided data does not specify the exact nature of the custom computer programming services. This information is crucial for assessing the value and effectiveness of the contract, as it could range from developing new public health databases to enhancing existing disease surveillance software.

How were cost ceilings and profit margins managed under the Cost Plus Fixed Fee structure?

Effective management of cost ceilings and profit margins is critical for Cost Plus Fixed Fee contracts to prevent excessive spending. Detailed oversight reports and regular audits would be necessary to ensure the contractor operated within agreed-upon financial parameters and that the fixed fee remained appropriate for the work performed.

What was the impact of this contract on the CDC's ability to perform its mission?

The contract's impact on the CDC's mission is likely positive, assuming the custom programming services successfully enhanced disease surveillance, data analysis, or public health communication capabilities. Without specific details on the deliverables, a definitive assessment of mission impact is challenging.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom 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: 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: $1,229,464,071

Exercised Options: $1,218,055,503

Current Obligation: $58,297,603

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: 2006-07-01

Current End Date: 2011-11-04

Potential End Date: 2011-11-04 00:00:00

Last Modified: 2023-01-10

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