HHS Spends $65.9M on Custom Computer Programming Services with Northrop Grumman, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $65,885,490 ($65.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2006-09-01
End Date: 2013-06-30
Contract Duration: 2,494 days
Daily Burn Rate: $26.4K/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 $65.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MULTIPLE CONTRACT TYPES Key points: 1. Significant spending on custom computer programming services highlights reliance on specialized IT solutions. 2. Northrop Grumman Systems Corporation is a major contractor in this domain. 3. Full and open competition suggests a potentially competitive bidding process. 4. The contract duration of over 6 years indicates a long-term need for these services.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar custom programming contracts is difficult without more granular data on the specific services provided.
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 can lead to more competitive pricing.
Taxpayer Impact: The use of full and open competition is a positive sign for taxpayer value, as it aims to secure the best possible price through a competitive process.
Public Impact
Public health initiatives may be supported by the custom software developed under this contract. The significant investment in IT services reflects the growing importance of technology in government operations. Transparency in government IT spending is crucial for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can be prone to cost escalation.
- Lack of specific service details makes detailed value assessment challenging.
Positive Signals
- Awarded through full and open competition.
- Long-term contract suggests sustained need and potential for stable service delivery.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming. Government spending on IT services, particularly custom development, is substantial and critical for modernizing operations and supporting agency missions.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded under a General Services Administration (GSA) schedule, which typically involves pre-negotiated terms and conditions, potentially streamlining oversight. However, the Cost Plus Fixed Fee structure requires diligent monitoring of costs and performance.
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 (over 6 years).
- Limited detail on specific services provided.
- Potential for cost overruns without stringent oversight.
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 $65.9 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 $65.9 million.
What is the period of performance?
Start: 2006-09-01. End: 2013-06-30.
What specific custom computer programming services were rendered, and how did they directly contribute to the CDC's mission?
The provided data lacks specifics on the exact nature of the custom computer programming services. To assess value, one would need to understand if these services involved developing new public health data management systems, enhancing existing analytical tools, or creating specialized software for disease surveillance. The direct contribution to the CDC's mission would depend on the successful implementation and utility of these custom solutions in areas like outbreak tracking, research support, or public health communication.
Given the Cost Plus Fixed Fee structure and the long duration, what mechanisms were in place to mitigate cost overruns and ensure efficient resource utilization?
Cost Plus Fixed Fee contracts inherently carry a risk of cost escalation. Effective mitigation would typically involve robust oversight from the contracting officer, detailed performance metrics, regular audits of expenditures, and clear communication channels with the contractor. The government would need to ensure that the fixed fee remained appropriate for the scope of work and that any cost increases were thoroughly justified and aligned with project objectives, not just contractor expenses.
How does the $65.9 million expenditure compare to industry benchmarks for similar custom programming projects of comparable complexity and duration?
Benchmarking this expenditure requires detailed comparison with similar government or private sector contracts for custom computer programming. Factors like the complexity of the software, the technologies used, the level of integration required, and the specific expertise of Northrop Grumman would need to be considered. Without access to proprietary industry data or more granular details on the project's scope, a precise benchmark is difficult, but the amount suggests a significant, complex undertaking.
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: $1,475,876,757
Exercised Options: $1,475,876,757
Current Obligation: $65,885,490
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: 2013-06-30
Potential End Date: 2013-06-30 00:00:00
Last Modified: 2022-12-21
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