HHS awards $30M for Custom Computer Programming Services to Northrop Grumman, utilizing full and open competition
Contract Overview
Contract Amount: $29,968,357 ($30.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2007-07-01
End Date: 2010-07-31
Contract Duration: 1,126 days
Daily Burn Rate: $26.6K/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 $30.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MULTIPLE CONTRACT TYPES Key points: 1. Significant contract value of $29.97M awarded. 2. Northrop Grumman Systems Corporation is the primary contractor. 3. Competition method was 'Full and Open', indicating broad market access. 4. Contract type is 'Cost Plus Fixed Fee', which can pose cost control challenges.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can lead to higher costs if not managed diligently. Benchmarking against similar CPFF contracts for custom programming services is recommended to ensure fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of 'Full and Open Competition' suggests a robust price discovery process. However, the CPFF structure requires careful oversight to prevent cost overruns and ensure value for money.
Taxpayer Impact: Taxpayer funds are utilized for custom programming services. The effectiveness of the competition and contract management will determine the ultimate value realized.
Public Impact
Public health initiatives supported by custom software development. Potential for improved data management and analysis within CDC. Contractor performance impacts the efficiency of public health services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost escalation.
- Contract duration of over 3 years requires ongoing monitoring.
- Specific performance metrics and deliverables are not detailed.
Positive Signals
- Full and open competition ensures a wide range of potential bidders.
- Award to a large, established contractor like Northrop Grumman may indicate reliability.
- Contract supports critical functions of the Centers for Disease Control and Prevention.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming. Spending benchmarks for similar IT services contracts vary widely based on complexity and scope, but $30M over three years is a substantial investment.
Small Business Impact
The contract was awarded through full and open competition, which generally favors larger, established companies. There is no specific indication of set-asides or efforts to include small businesses in this particular award.
Oversight & Accountability
Oversight is crucial for CPFF contracts to manage costs and ensure adherence to scope. The Department of Health and Human Services and the CDC are responsible for monitoring performance and expenditures.
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 detailed service descriptions.
- Long contract duration requires sustained oversight.
- No explicit mention of small business participation.
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 $30.0 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 $30.0 million.
What is the period of performance?
Start: 2007-07-01. End: 2010-07-31.
What specific custom computer programming services were delivered, and how did they contribute to the CDC's mission?
The contract data indicates 'Custom Computer Programming Services' under NAICS code 541511. While the specific services are not detailed, they likely supported the CDC's public health data management, analysis, or operational systems. The effectiveness would be measured by the impact on disease surveillance, research, or public health response capabilities.
How effectively were costs managed under the Cost Plus Fixed Fee structure to ensure value for taxpayer money?
The Cost Plus Fixed Fee (CPFF) structure requires diligent oversight to control costs. Without detailed financial reports or performance reviews, it's difficult to assess cost management effectiveness. Regular audits and performance reviews by HHS/CDC would be necessary to ensure the fixed fee was appropriate and costs were reasonable and allocable.
Did the full and open competition result in the most competitive pricing and best value for the government?
Full and open competition is designed to maximize competition and achieve best value. However, the CPFF structure introduces inherent cost risks. Evaluating the number of bids received, the final negotiated price against initial proposals, and the overall performance outcomes would be key to determining if the competition truly yielded optimal value.
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
Solicitation ID: 2000N00120
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: $199,888,171
Exercised Options: $190,056,291
Current Obligation: $29,968,357
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSD200200403409I
IDV Type: IDC
Timeline
Start Date: 2007-07-01
Current End Date: 2010-07-31
Potential End Date: 2010-07-31 00:00:00
Last Modified: 2022-12-21
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