HHS awards $20.9M for Custom Computer Programming Services to Northrop Grumman under full and open competition
Contract Overview
Contract Amount: $20,868,772 ($20.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2006-09-01
End Date: 2013-01-31
Contract Duration: 2,344 days
Daily Burn Rate: $8.9K/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 $20.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MULTIPLE CONTRACT TYPES Key points: 1. Significant contract value of $20.9 million awarded over 7 years. 2. Northrop Grumman Systems Corporation is the sole awardee. 3. Contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. Services fall under NAICS code 541511 (Custom Computer Programming Services).
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar custom programming services is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific awardee is Northrop Grumman, and the impact of this competition on price discovery requires further analysis of the bid outcomes.
Taxpayer Impact: Taxpayer funds were used for custom computer programming services. The Cost Plus Fixed Fee structure necessitates careful oversight to ensure cost efficiency and prevent unnecessary spending.
Public Impact
Public health initiatives supported by custom software development. Potential for improved data management and analysis within the CDC. Long-term contract duration may indicate critical, ongoing IT needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration (7 years) may not reflect current market prices.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Awarded under full and open competition.
- Supports critical CDC functions.
- Established contractor with a history of government work.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming. Spending benchmarks for similar services vary widely based on complexity and duration, but $20.9 million over seven years suggests a substantial, long-term project.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The awardee, Northrop Grumman, is a large corporation, suggesting limited direct benefit to small businesses through this prime contract.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires robust oversight from the Department of Health and Human Services to ensure costs are reasonable and allocable. Regular audits and performance reviews are crucial for 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 structure.
- Long contract duration.
- Lack of detailed performance metrics.
- Potential for cost overruns.
- Limited transparency on specific fee structure.
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 $20.9 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 $20.9 million.
What is the period of performance?
Start: 2006-09-01. End: 2013-01-31.
What was the final negotiated fixed fee and how does it compare to industry standards for similar projects?
The provided data does not specify the final negotiated fixed fee. To assess its reasonableness, it would be necessary to compare it against benchmarks for custom computer programming services of similar scope and complexity, considering the contractor's overhead and profit margins.
What were the key performance indicators (KPIs) for this contract and how was performance measured?
The data does not include specific Key Performance Indicators (KPIs) or details on how performance was measured. Understanding the contract's success hinges on evaluating whether the delivered custom computer programming met the CDC's requirements and objectives effectively.
How did the competitive bidding process under 'full and open competition' influence the final contract price?
While 'full and open competition' suggests multiple bids were solicited, the data doesn't reveal the number of bids received or the price range. A competitive process ideally drives down prices, but the Cost Plus Fixed Fee structure can mitigate some of that effect.
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: $296,998,195
Exercised Options: $296,998,195
Current Obligation: $20,868,772
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: 2013-01-31
Potential End Date: 2013-01-31 00:00:00
Last Modified: 2022-12-21
More Contracts from Northrop Grumman Systems Corporation
- 200506!000026!5700!fa8214!oo-Alc/Pkme/Lmke !F4261098C0001 !A!N! !Y! !p01502!20041213!20050701!001563738!004179453!016435559!n!northrop Grumman Space & Missi!888 S 2000 E !clearfield !ut!84015!13850!011!49!clearfield !davis !utah !-000001960000!n!n!000000000000!l014!tech REP Svcs/Guided Missiles !A2 !missile and Space Systems !302 !minuteman III GRP !541330!E! !3! ! !C! ! !20200930!B! ! !A! !a!n!l!2!002!b! !Z!Y!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $10.0B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-7) — $8.5B (Department of Defense)
- E-2D Advanced Hawkeye Aircraft (FRP-2) — $5.4B (Department of Defense)
- First DDT and E, Ares I-X, and Flight Tests. First Stage Will BE a Five Segment, Solid Rocket Booster Derived From the Space Shuttle Program (SSP) Solid Rocket Booster (srb)/Reusable Solid Rocket Motor (rsrm). the Contractor Shall Furnish the Necessary Management, Engineering, Labor, Facilities, Tools, Equipment, and Materials Required for First Stage Development, Qualification, Certification and Acceptance Program. Activities Include: Redesign and Testing of the Motor to Incorporate the Fifth Segment and Production of Five Full Scale Ground Static Test Motors: TWO Development Motors (dms)-And Three Qualification Motors (QMS); Structural Test Article (STA), Ground Vibration Test Motors (gvtms) and Other Development Testing; Redesign of the Avionics, Deceleration, Separation, and Flight Termination System (FTS) Subsystems; Ares I-X: Simulated Ares I Outer Mold Line/Mass Properties Using Modified Srb/Rsrm; and Three Flight Test Vehicles. TAS::80 0124::TAS — $4.4B (National Aeronautics and Space Administration)
- Federal Contract — $4.4B (Department of Defense)
View all Northrop Grumman Systems Corporation federal contracts →
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →