HHS awards $10.4M for Custom Computer Programming Services to Northrop Grumman via Full and Open Competition
Contract Overview
Contract Amount: $10,439,699 ($10.4M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2006-08-01
End Date: 2011-08-31
Contract Duration: 1,856 days
Daily Burn Rate: $5.6K/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 $10.4 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MULTIPLE CONTRACT TYPES Key points: 1. Spending of $10.4M over 5 years on custom programming. 2. Northrop Grumman Systems Corporation is the sole awardee. 3. Contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. The sector is IT services, specifically custom computer programming.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar custom programming contracts is difficult without more detailed cost breakdowns.
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 structure may still allow costs to exceed initial expectations.
Taxpayer Impact: Taxpayer funds were used in a competitive process, but the CPFF structure warrants close monitoring to ensure cost efficiency.
Public Impact
CDC's reliance on custom programming highlights the need for specialized IT support. The long contract duration (5 years) suggests a significant, ongoing need for these services. Award to a large corporation like Northrop Grumman may limit opportunities for smaller, specialized firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration
Positive Signals
- Full and open competition
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is common for government agencies requiring tailored software solutions.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication that small businesses were involved as subcontractors or prime contractors in this specific award.
Oversight & Accountability
The use of Full and Open Competition is a positive oversight mechanism. However, the Cost Plus Fixed Fee structure necessitates diligent oversight to control costs and ensure value.
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 transparency in detailed cost breakdowns
- Limited visibility into small business participation
- Long contract duration may indicate a lack of agile development or market shifts
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 $10.4 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 $10.4 million.
What is the period of performance?
Start: 2006-08-01. End: 2011-08-31.
What was the rationale for choosing a Cost Plus Fixed Fee contract type over other pricing structures for custom programming services?
The rationale for a Cost Plus Fixed Fee (CPFF) contract often stems from situations where the scope of work is not precisely defined, or the costs are difficult to estimate accurately upfront. For custom programming, this can be due to evolving requirements or the innovative nature of the development. CPFF allows the contractor to be reimbursed for allowable costs plus a fixed fee representing profit, providing flexibility but requiring robust government oversight to manage costs effectively and prevent scope creep.
How does the $10.4M award compare to typical spending on custom computer programming services by agencies like the CDC?
Without specific benchmarks for CDC's custom programming needs, a direct comparison is challenging. However, $10.4M over five years averages approximately $2.08M annually. This figure is within a reasonable range for complex IT development projects requiring specialized expertise, especially when considering the scale and potential criticality of CDC's mission-related software needs. Further analysis would require comparing to similar agency procurements for comparable services.
What are the key performance indicators (KPIs) being tracked to ensure the effectiveness and value of these custom computer programming services?
Effective oversight of custom programming contracts typically involves tracking KPIs such as adherence to project timelines, successful completion of milestones, quality of deliverables (e.g., bug rates, performance metrics), user satisfaction, and alignment with original project objectives. For a CPFF contract, monitoring the actual costs incurred against the estimated costs and the fixed fee is also crucial to ensure financial accountability and prevent cost overruns beyond what was initially anticipated.
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: 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: $994,326,350
Exercised Options: $994,326,350
Current Obligation: $10,439,699
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: 2006-08-01
Current End Date: 2011-08-31
Potential End Date: 2011-08-31 00:00:00
Last Modified: 2022-12-21
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