HHS CDC Awards Northrop Grumman $14.5M for Custom Computer Programming Services
Contract Overview
Contract Amount: $14,498,091 ($14.5M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2006-09-01
End Date: 2010-10-06
Contract Duration: 1,496 days
Daily Burn Rate: $9.7K/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 $14.5 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MULTIPLE CONTRACT TYPES Key points: 1. Contract awarded to a single large business, Northrop Grumman. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration was significant at 1496 days. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.
Value Assessment
Rating: fair
The contract value of $14.5 million over approximately four years for custom programming services appears moderate. Benchmarking against similar contracts for complex IT services is necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value through market forces.
Public Impact
Ensured continued development and maintenance of critical health IT systems. Supported public health initiatives through advanced data processing and software solutions. Potential for long-term reliance on a single vendor for specialized IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long contract duration may not reflect current technological needs.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Supported critical public health functions.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming. Spending in this area is substantial across government, with benchmarks varying widely based on complexity and service level.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the awardee is a large corporation. Further analysis would be needed to determine if small business participation was considered or achieved.
Oversight & Accountability
The use of full and open competition suggests a structured procurement process. However, oversight of the Cost Plus Fixed Fee structure is crucial to manage costs effectively and ensure accountability.
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 contract type.
- Long contract duration.
- Potential for cost overruns.
- Lack of small business participation.
- Limited insight into competitive intensity.
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 $14.5 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 $14.5 million.
What is the period of performance?
Start: 2006-09-01. End: 2010-10-06.
What was the specific scope of work for the custom computer programming services, and how did it align with the agency's evolving needs over the contract period?
The provided data does not detail the specific scope of work. Understanding the precise services rendered is crucial for evaluating the contract's effectiveness and value. Without this information, it's difficult to assess if the programming services directly addressed the CDC's evolving technological requirements or if the project scope remained static despite advancements in the field.
How effectively did the Cost Plus Fixed Fee structure manage costs and incentivize performance given the 1496-day duration?
Cost Plus Fixed Fee contracts can be challenging to manage, especially over extended periods. While the fixed fee provides some cost certainty, the 'cost plus' element can incentivize contractors to incur higher costs to increase the base for the fee. Effective oversight, detailed cost tracking, and clear performance metrics are essential to mitigate risks of cost overruns and ensure value for money.
What was the competitive landscape during the full and open competition, and did the final award represent a significant cost saving compared to initial estimates?
While the contract was awarded under full and open competition, the provided data does not reveal the number of bidders or the details of the bidding process. Therefore, it's impossible to assess the intensity of the competition or whether the final award represented a significant cost saving. Further investigation into the solicitation documents and bid results would be necessary.
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: $458,613,345
Exercised Options: $450,034,919
Current Obligation: $14,498,091
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSD200200403409I
IDV Type: IDC
Timeline
Start Date: 2006-09-01
Current End Date: 2010-10-06
Potential End Date: 2010-10-06 00:00:00
Last Modified: 2022-12-22
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