HHS Awards $10M+ for Custom Computer Programming Services to Northrop Grumman
Contract Overview
Contract Amount: $10,069,444 ($10.1M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2007-03-12
End Date: 2007-06-30
Contract Duration: 110 days
Daily Burn Rate: $91.5K/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 $10.1 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MULTIPLE CONTRACT TYPES Key points: 1. Contract awarded to a large, established defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is IT services, specifically custom computer programming.
Value Assessment
Rating: fair
The contract value is over $10 million. Without specific benchmarks for custom computer programming services of this scope and complexity, it's difficult to definitively assess pricing. However, the Cost Plus Fixed Fee structure warrants scrutiny for potential cost escalations.
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, though the specific contract type (Cost Plus Fixed Fee) can mitigate some of these benefits.
Taxpayer Impact: Taxpayer funds were used in a competitive bidding process for IT services. The Cost Plus Fixed Fee structure means taxpayers bear the risk of cost overruns, impacting the overall value for money.
Public Impact
Public health initiatives supported by custom software development. Potential for improved data management and analysis within the CDC. Investment in critical IT infrastructure for a federal agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs than fixed-price contracts.
- Contract duration is relatively short (110 days), which might indicate a specific project phase or a need for follow-on work.
- No specific small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Contract supports the Centers for Disease Control and Prevention, a critical agency.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is crucial for federal agencies to maintain and upgrade their technological capabilities. Benchmarks for custom programming can vary widely based on complexity and specialized skills required.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false). This suggests the contract was likely awarded to a large prime contractor, and any small business involvement would be through subcontracting, which is not detailed here.
Oversight & Accountability
Oversight would typically involve monitoring the contractor's progress, costs, and adherence to contract terms. The Cost Plus Fixed Fee structure necessitates close financial oversight to manage potential cost escalations and ensure efficient use of taxpayer funds.
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.
- Lack of specific performance metrics or outcomes in the provided data.
- Potential for cost overruns inherent in CPFF contracts.
- No indication of small business subcontracting.
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 $10.1 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 $10.1 million.
What is the period of performance?
Start: 2007-03-12. End: 2007-06-30.
What was the specific scope of work for these custom computer programming services, and how did it align with the CDC's mission?
The provided data does not detail the specific scope of work. However, as it was awarded to the Centers for Disease Control and Prevention (CDC), it likely involved developing or enhancing software systems critical for public health data management, analysis, disease surveillance, or reporting. Understanding the precise requirements would be key to assessing the value and necessity of this particular contract.
Given the Cost Plus Fixed Fee structure, what mechanisms were in place to control costs and ensure efficiency?
Cost Plus Fixed Fee contracts require robust oversight to manage costs. Mechanisms likely included detailed cost reporting, regular audits, and performance reviews to ensure the contractor operated efficiently and within reasonable cost parameters. The fixed fee component provides some incentive for the contractor to complete the work, but the government still bears the primary risk of cost overruns.
How did the full and open competition process ensure the best value was achieved for these programming services?
Full and open competition allows multiple vendors to bid, theoretically driving down prices and encouraging innovation. The agency would evaluate proposals based on technical merit, past performance, and price. However, the Cost Plus Fixed Fee structure means the final cost is not fixed upfront, so 'best value' is assessed against projected costs and the contractor's ability to deliver the required technical solution within those projections.
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: $390,098,415
Exercised Options: $390,098,415
Current Obligation: $10,069,444
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSD200200403409I
IDV Type: IDC
Timeline
Start Date: 2007-03-12
Current End Date: 2007-06-30
Potential End Date: 2007-06-30 00:00:00
Last Modified: 2022-12-22
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