HHS Awards $16.9M for Custom Computer Programming to Northrop Grumman

Contract Overview

Contract Amount: $16,945,679 ($16.9M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2008-10-30

End Date: 2009-11-21

Contract Duration: 387 days

Daily Burn Rate: $43.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CITS SPT DHA

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CITS SPT DHA Key points: 1. Significant contract value of $16.9 million. 2. Northrop Grumman Systems Corporation is the sole awardee. 3. Contract type is Cost Plus Fixed Fee, potentially leading to cost overruns. 4. Services fall under Custom Computer Programming, a common IT sector.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can be less price-efficient than fixed-price contracts, especially if scope creep occurs. Benchmarking against similar custom programming contracts is difficult without more detailed scope information.

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 award mechanism (Delivery Order) and contract type (CPFF) warrant scrutiny for price discovery.

Taxpayer Impact: Taxpayer funds are utilized for custom computer programming services. The CPFF structure requires careful monitoring to ensure cost efficiency and prevent unnecessary expenditure.

Public Impact

Public health initiatives may be supported by these custom programming services. The contract's duration and value indicate a substantial project impacting CDC's IT capabilities. Transparency in how the funds are utilized for specific programming tasks is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type
  • Lack of specific performance metrics in provided data
  • Potential for scope creep with custom programming

Positive Signals

  • Awarded under full and open competition
  • Supports critical public health agency (CDC)

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is substantial across government, with benchmarks varying widely based on complexity and duration.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. Large prime contractors like Northrop Grumman often utilize subcontractors, but the primary awardee is a large business.

Oversight & Accountability

Oversight is critical for Cost Plus Fixed Fee contracts to ensure costs are reasonable and allocable. 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

  • Cost Plus Fixed Fee contract type
  • Potential for cost overruns
  • Limited detail on specific services and deliverables
  • Reliance on a single large contractor

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 $16.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CITS SPT DHA

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 $16.9 million.

What is the period of performance?

Start: 2008-10-30. End: 2009-11-21.

What specific custom computer programming services were delivered, and how did they align with the CDC's mission objectives?

The provided data lacks specifics on the exact programming services rendered. To assess value, a detailed review of project deliverables, technical documentation, and alignment with CDC's strategic goals would be necessary. This would clarify if the $16.9 million investment directly contributed to enhanced public health capabilities or operational efficiencies.

What mechanisms were in place to control costs and prevent overruns under the Cost Plus Fixed Fee structure?

Cost Plus Fixed Fee contracts inherently carry a risk of cost escalation. Effective oversight would involve rigorous auditing of direct costs, clear definitions of indirect costs, and robust negotiation of the fixed fee. The agency's internal controls and auditing procedures are key to mitigating financial risks associated with this contract type.

How effectively did the competitive bidding process ensure the best value for taxpayer dollars in this full and open competition?

While full and open competition suggests a broad solicitation, the ultimate value depends on the evaluation criteria and the rigor of the proposal review. Assessing effectiveness requires examining the number of bids received, the technical and cost proposals submitted, and the justification for selecting Northrop Grumman. A thorough post-award review could confirm if the chosen solution represented the optimal balance of cost and technical merit.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2000N00120

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: $18,900,234

Exercised Options: $18,900,234

Current Obligation: $16,945,679

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSD200200403409I

IDV Type: IDC

Timeline

Start Date: 2008-10-30

Current End Date: 2009-11-21

Potential End Date: 2009-11-21 00:00:00

Last Modified: 2022-12-22

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