HHS awards $32.3M for DHAP IT Support to Northrop Grumman, highlighting custom programming services
Contract Overview
Contract Amount: $32,303,260 ($32.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2009-11-22
End Date: 2011-08-31
Contract Duration: 647 days
Daily Burn Rate: $49.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: DHAP IT SUPPORT
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30329
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $32.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: DHAP IT SUPPORT Key points: 1. Value for money assessed through competitive bidding and market benchmarking. 2. Competition dynamics indicate a robust market for IT support services. 3. Risk indicators include contract type and performance period. 4. Performance context is within the Centers for Disease Control and Prevention's IT infrastructure. 5. Sector positioning is in custom computer programming services for public health.
Value Assessment
Rating: good
The contract value of $32.3 million over approximately two years appears reasonable given the scope of custom computer programming services. Benchmarking against similar IT support contracts within federal agencies suggests that pricing is competitive, especially considering the specialized nature of public health IT. The use of Time and Materials pricing, while common, warrants scrutiny for cost control and efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting multiple bidders vied for the opportunity. This level of competition is generally positive for price discovery and ensures that the government receives offers from a wide range of qualified vendors. The presence of multiple bidders likely drove down costs and encouraged innovation.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for IT support services, preventing inflated pricing and ensuring efficient use of public funds.
Public Impact
The primary beneficiaries are the Centers for Disease Control and Prevention (CDC) and the Division of HIV/AIDS Prevention (DHAP), which receive essential IT support. Services delivered include custom computer programming, IT support, and maintenance crucial for public health data management and operations. The geographic impact is primarily within the CDC's operational areas, likely supporting national public health initiatives. Workforce implications include the potential for skilled IT professionals to be employed by the contractor to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with Time and Materials pricing if not closely monitored.
- Dependence on a single contractor for critical IT functions could pose a risk if performance falters.
- Scope creep could lead to increased costs beyond the initial award amount.
Positive Signals
- Awarded through full and open competition, indicating a competitive marketplace.
- Contractor has a significant presence in government IT services.
- Contract duration provides a stable period for service delivery.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on custom computer programming (NAICS 541511). The federal IT services market is substantial, with significant spending allocated to software development, system integration, and IT support. This contract represents a portion of the CDC's investment in maintaining and enhancing its critical public health information systems, aligning with overall government IT modernization efforts.
Small Business Impact
The contract data indicates that small business participation was not a primary focus, as the award was not set aside for small businesses and the contractor is a large corporation. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary benefits of this contract may not directly flow to the small business ecosystem, although large prime contractors often engage small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the CDC. Accountability measures are inherent in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- CDC IT Modernization Programs
- Public Health Informatics Contracts
- Custom Software Development Services
- Federal Health IT Spending
Risk Flags
- Potential for cost escalation due to Time and Materials pricing structure.
- Contract performance monitoring is crucial to ensure service quality and efficiency.
- Dependence on contractor for critical IT functions.
Tags
it-services, custom-computer-programming, health-and-human-services, centers-for-disease-control-and-prevention, northrop-grumman-systems-corporation, full-and-open-competition, delivery-order, time-and-materials, georgia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $32.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. DHAP IT SUPPORT
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 $32.3 million.
What is the period of performance?
Start: 2009-11-22. End: 2011-08-31.
What is Northrop Grumman's track record with similar federal IT support contracts?
Northrop Grumman Systems Corporation is a major defense contractor with extensive experience in providing IT services to various federal agencies. Their track record includes large-scale system integration, software development, and IT support across defense, intelligence, and civilian sectors. While specific performance data for this particular DHAP IT Support contract is not detailed here, the company's overall profile suggests a capacity to handle complex IT requirements. However, like any large contractor, past performance reviews and contract-specific data would be necessary for a comprehensive assessment of their reliability and effectiveness in delivering on this specific award.
How does the $32.3 million contract value compare to other custom computer programming services contracts awarded by HHS?
The $32.3 million contract value for DHAP IT Support, awarded over approximately two years, is a significant but not extraordinary sum for custom computer programming services within a large agency like HHS. Federal IT spending, particularly for specialized services like those supporting public health initiatives, can range widely. Contracts for custom development and ongoing IT support for complex systems often run into tens or hundreds of millions of dollars. To provide a precise comparison, one would need to analyze the scope, duration, and specific services of other HHS custom programming contracts. However, in the context of supporting critical public health infrastructure, this award appears to be within a reasonable range for a comprehensive IT support engagement.
What are the primary risks associated with a Time and Materials (T&M) contract for IT support?
Time and Materials (T&M) contracts, like the one used here, carry inherent risks primarily related to cost control and potential for overruns. The government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or percentage. This structure can lead to higher costs if contractor efficiency is low or if the scope of work expands without adequate oversight. For the government, it requires diligent monitoring of labor hours, rates, and material expenses to ensure value. Unlike fixed-price contracts, T&M offers less cost certainty upfront, making effective management and oversight crucial to mitigate risks of inflated expenditures and ensure the project stays within budget expectations.
How effective is full and open competition in ensuring value for taxpayer money in IT services?
Full and open competition is widely considered the most effective method for ensuring value for taxpayer money in IT services. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best pricing and most innovative solutions to win the contract. This broad competition helps establish a market-based price, reducing the likelihood of overpayment. Furthermore, it allows the government to select the offer that provides the best overall value, considering not just price but also technical merit, past performance, and other factors. While it requires more administrative effort to manage the solicitation and evaluation process, the long-term benefits in terms of cost savings and quality are substantial.
What are the implications of this contract for the Centers for Disease Control and Prevention's operational capabilities?
This contract is critical for the operational capabilities of the Centers for Disease Control and Prevention (CDC), specifically supporting the Division of HIV/AIDS Prevention (DHAP). Reliable and advanced IT infrastructure and custom programming are essential for managing vast amounts of public health data, running analytical models, disseminating information, and coordinating prevention efforts. By outsourcing these IT support functions to a capable contractor like Northrop Grumman, the CDC can ensure the continuity and enhancement of its technological backbone. This allows CDC personnel to focus on their core public health mission rather than day-to-day IT management, thereby strengthening the agency's ability to respond to health threats and implement prevention strategies effectively.
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
Pricing Type: TIME AND MATERIALS (Y)
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: $34,573,929
Exercised Options: $34,573,929
Current Obligation: $32,303,260
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSD200200403409I
IDV Type: IDC
Timeline
Start Date: 2009-11-22
Current End Date: 2011-08-31
Potential End Date: 2011-08-31 00:00:00
Last Modified: 2022-12-27
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 →