HHS awarded $13.8M for custom computer programming, with Northrop Grumman Systems Corporation as the primary contractor

Contract Overview

Contract Amount: $13,795,468 ($13.8M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-01

End Date: 2011-07-31

Contract Duration: 1,063 days

Daily Burn Rate: $13.0K/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 $13.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: MULTIPLE CONTRACT TYPES Key points: 1. The contract's value of $13.8 million over approximately three years suggests a significant investment in IT services. 2. Full and open competition was utilized, indicating a broad market solicitation for these services. 3. The contract type, Cost Plus Fixed Fee, can sometimes lead to cost overruns if not managed carefully. 4. The primary contractor, Northrop Grumman Systems Corporation, is a large, established entity in the aerospace and defense sector, also active in IT services. 5. The services provided fall under Custom Computer Programming, a critical area for government IT infrastructure. 6. The contract was awarded to a single vendor, Northrop Grumman Systems Corporation, for multiple delivery orders. 7. The duration of the contract, 1063 days, indicates a medium-term engagement for the services rendered.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the scope of custom computer programming services. However, a $13.8 million award over roughly three years for specialized IT development suggests a substantial investment. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, carries inherent risks of cost escalation if not meticulously managed. Comparing this to similar custom programming contracts would require detailed analysis of service scope, complexity, and contractor overhead rates. The provided data does not offer enough granular detail to definitively assess value-for-money against market rates or similar government procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting that the solicitation was made available to all responsible prospective contractors. This approach is generally intended to maximize competition and achieve the best value for the government. The data does not specify the number of bids received, which is crucial for understanding the actual level of competition. A high number of bids typically indicates robust competition, potentially leading to more favorable pricing and innovative solutions. Conversely, a low number of bids, even under full and open competition, might suggest market limitations or specific technical requirements that narrowed the field.

Taxpayer Impact: Full and open competition aims to ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and improves service quality.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced custom computer programming services, likely supporting its mission-critical IT systems. These services are essential for the development and maintenance of software applications used in public health data management, analysis, and dissemination. The geographic impact is primarily within the United States, supporting federal government operations, with potential downstream benefits to public health nationwide. The workforce implications include employment for skilled IT professionals within Northrop Grumman Systems Corporation and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to increase costs to maximize profit, requiring stringent oversight.
Lack of specific details on the number of bidders under 'Full and Open Competition' makes it difficult to assess the true competitiveness of the award.
The provided data lacks performance metrics or quality indicators, making it hard to evaluate the effectiveness of the services delivered.
The absence of information on small business subcontracting raises questions about opportunities for smaller firms in this significant IT contract.

Positive Signals

The use of 'Full and Open Competition' is a positive signal, indicating an effort to leverage the broadest possible market for services.
Awarding to a large, established contractor like Northrop Grumman Systems Corporation can suggest a level of confidence in their capability to deliver complex IT solutions.
The contract supports critical IT functions for the CDC, a vital agency for public health, implying a focus on essential government operations.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Custom Computer Programming Services. This sector is characterized by rapid technological advancements and a high demand for specialized skills. Government spending in this area is substantial, supporting everything from basic IT infrastructure to advanced data analytics and cybersecurity. Comparable spending benchmarks would typically involve analyzing the average cost of similar programming services across federal agencies, considering factors like complexity, security requirements, and contractor experience. The market size for custom software development is vast, with numerous large and small businesses competing for government contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all responsible sources, including large businesses. While this maximizes the pool of potential bidders, it may limit direct opportunities for small businesses unless they are part of a subcontracting plan. The absence of specific subcontracting goals or reporting in the provided data makes it difficult to assess the impact on the small business ecosystem. Large prime contractors are often encouraged or required to subcontract portions of their work to small businesses, but the extent to which this occurred here is unknown.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the Centers for Disease Control and Prevention (CDC). As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are essential to ensure costs remain reasonable and deliverables are met. The contract's duration and value suggest that regular reporting, audits, and reviews would be standard. The specific mechanisms, such as contract officer representatives (CORs) and performance management plans, are not detailed in the provided data. Transparency would depend on agency policies regarding the release of contract details and performance information.

Related Government Programs

HHS IT Modernization Initiatives
CDC Data Management Systems
Federal Custom Software Development Contracts
Information Technology Services for Public Health Agencies

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Lack of specific competition metrics (number of bidders) hinders full assessment of value.
Absence of performance metrics makes quality and effectiveness evaluation difficult.
Limited information on small business subcontracting impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.8 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 $13.8 million.

What is the period of performance?

Start: 2008-09-01. End: 2011-07-31.

What was the specific scope of custom computer programming services provided under this contract?

The provided data classifies the service under NAICS code 541511 (Custom Computer Programming Services) but does not detail the specific applications, systems, or functionalities developed or maintained. These services could range from developing new software applications, modifying existing systems, integrating disparate software platforms, database development, or providing specialized programming expertise for unique public health data challenges faced by the CDC. Without a detailed statement of work (SOW), it is impossible to ascertain the precise nature and complexity of the programming tasks undertaken by Northrop Grumman Systems Corporation.

How did the final cost compare to the initial estimated cost, given the CPFF contract type?

The provided data only includes the awarded amount ($13,795,468.31) and does not contain information on initial estimates, ceiling prices, or the final incurred costs. For Cost Plus Fixed Fee (CPFF) contracts, the government pays the contractor's actual allowable costs plus a fixed fee representing profit. While the fixed fee is intended to provide the contractor with an incentive to control costs, the total cost can fluctuate based on actual expenses. To assess cost performance, one would need to compare the final incurred costs against the contract's ceiling and potentially against initial projections or benchmarks for similar projects. This information is not available in the dataset.

What was the number of bids received during the 'Full and Open Competition' process?

The data indicates that the contract was awarded under 'Full and Open Competition,' which signifies that the solicitation was broadly advertised. However, the specific number of bids or proposals received is not provided. This metric is crucial for evaluating the effectiveness of the competition. A large number of bids typically suggests a healthy market response and potentially better price discovery for the government. A low number of bids, even under full and open competition, might indicate specialized requirements, limited market capacity, or insufficient outreach. Without this data point, the true level of competition achieved remains uncertain.

What is Northrop Grumman Systems Corporation's track record with similar custom programming contracts for federal health agencies?

Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in IT services, including software development, systems integration, and cybersecurity, across various government agencies. While specific details on their past performance exclusively within custom programming for federal health agencies like the CDC are not provided here, their general profile suggests a capacity for handling large, complex IT projects. A deeper analysis would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other relevant contract awards, and any publicly available information on their health IT sector involvement to gauge their specific expertise and reliability in this domain.

Are there any performance metrics or quality indicators available for this contract?

The provided data does not include any specific performance metrics, quality indicators, or evaluation results related to this contract. For IT services, such metrics might include software defect rates, system uptime, on-time delivery of milestones, user satisfaction, or adherence to security protocols. The absence of this information makes it difficult to assess the effectiveness and quality of the custom computer programming services delivered by Northrop Grumman Systems Corporation under this award. Standard government contracting practice involves defining key performance parameters (KPPs) and service level agreements (SLAs) within the contract.

How does the contract's value compare to average spending on custom computer programming services by the CDC or HHS?

The awarded value of approximately $13.8 million over roughly three years for custom computer programming services represents a significant investment. To benchmark this against average spending, one would need access to historical HHS and CDC IT procurement data, specifically for NAICS code 541511. Factors such as the complexity of the programming, the specific technologies used, and the duration of the contract influence cost. Without comparative data on similar CDC or HHS custom programming contracts, it's challenging to definitively state whether this award represents high, low, or average spending. However, given the scale, it likely supported substantial development or maintenance efforts.

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: $48,782,568

Exercised Options: $48,782,568

Current Obligation: $13,795,468

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSD200200403409I

IDV Type: IDC

Timeline