Northrop Grumman received over $74.7M for scientific and technical consulting services from HHS
Contract Overview
Contract Amount: $74,708,785 ($74.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2004-06-30
End Date: 2010-03-31
Contract Duration: 2,100 days
Daily Burn Rate: $35.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: 200-2004-07983, NGIT
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $74.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: 200-2004-07983, NGIT Key points: 1. The contract's duration of 2100 days suggests a long-term need for specialized expertise. 2. The 'Other Scientific and Technical Consulting Services' NAICS code indicates a broad scope of work. 3. The contract was awarded as a sole-source procurement, raising questions about competition. 4. The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. 5. The absence of small business set-aside flags suggests limited direct opportunities for smaller firms. 6. The contract's value places it in the mid-to-large range for consulting services.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables. However, the total award of over $74.7 million over approximately 5.75 years indicates a significant investment. The CPFF structure necessitates close monitoring to ensure costs remain reasonable and aligned with the fixed fee. Without comparative data on similar long-term, sole-source consulting contracts for scientific and technical services, it's difficult to definitively assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities or when urgency precludes a competitive process. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple bids had been solicited.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the government secured the best possible price for the services rendered.
Public Impact
The Centers for Disease Control and Prevention (CDC) likely benefited from specialized scientific and technical expertise. Services delivered could encompass research support, data analysis, or program development within public health. The contract's geographic impact is noted as Georgia (GA), suggesting a concentration of work or personnel in that state. The workforce implications are likely related to highly skilled scientific and technical professionals employed by Northrop Grumman.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
- Cost Plus Fixed Fee contract type carries inherent risk of cost escalation if not rigorously managed.
- Lack of transparency in the sole-source justification could obscure potential alternatives or better value propositions.
- The long contract duration (2100 days) may reduce flexibility to adapt to changing needs or technologies.
Positive Signals
- Award to a large, established contractor like Northrop Grumman suggests access to significant resources and expertise.
- The substantial contract value indicates a critical need for the services provided by the CDC.
- The definitive contract award type implies a clear understanding of the scope of work and terms.
- The contract's duration suggests a stable, ongoing requirement, potentially leading to efficient service delivery.
Sector Analysis
This contract falls within the Scientific and Technical Consulting Services sector, a broad category encompassing a wide range of specialized advisory and support functions. The market for such services is competitive, with numerous firms offering expertise in areas like research, engineering, and management consulting. However, specific niche areas, particularly those requiring high-level security clearances or unique technological capabilities, can be dominated by a few large contractors. The value of this contract, exceeding $74 million, positions it as a significant procurement within this sector, likely supporting critical government functions.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Consequently, there are no direct subcontracting requirements mandated for small businesses within this specific award. While Northrop Grumman may engage small businesses as subcontractors based on their own procurement strategies, this contract does not inherently drive small business participation. The absence of set-asides means that opportunities for small businesses to directly compete for this substantial portion of federal spending are limited.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting officers and program managers within the Centers for Disease Control and Prevention (CDC) and the Department of Health and Human Services (HHS). As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure compliance with contract terms. Transparency regarding the justification for the sole-source award and performance metrics would be key accountability measures. The Inspector General's office for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Scientific and Technical Consulting Services
- Health IT Consulting
- Public Health Program Support
- Research and Development Support Services
- Federal IT Consulting Contracts
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Long contract duration
- Broad service classification
Tags
scientific-and-technical-consulting, northrop-grumman, department-of-health-and-human-services, centers-for-disease-control-and-prevention, definitive-contract, cost-plus-fixed-fee, sole-source, georgia, large-contract, scientific-services, technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $74.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. 200-2004-07983, NGIT
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 $74.7 million.
What is the period of performance?
Start: 2004-06-30. End: 2010-03-31.
What specific scientific and technical consulting services were provided under this contract?
The contract's NAICS code (541690) indicates 'Other Scientific and Technical Consulting Services,' which is a broad category. Without access to the contract's statement of work, the precise services are not detailed in the provided data. However, given the awarding agency (CDC), these services likely pertained to public health initiatives, epidemiological research, data analysis, health program development, or scientific advisory support. The long duration and substantial value suggest complex, ongoing projects requiring specialized expertise that Northrop Grumman was uniquely positioned to provide, as indicated by the sole-source award.
How does the $74.7 million contract value compare to similar consulting contracts awarded by the CDC or HHS?
Comparing this $74.7 million contract requires context on the typical scale of consulting services procured by the CDC and HHS. While specific benchmarks are not provided, a contract of this magnitude over a 2100-day period (approximately 5.75 years) suggests a significant and long-term requirement. Many federal consulting contracts, especially for specialized scientific or technical expertise, can reach tens or even hundreds of millions of dollars. However, the sole-source nature of this award means direct price comparisons with competitively bid contracts are less meaningful. It represents a substantial investment in a specific area of need for the agency.
What are the primary risks associated with a sole-source, Cost Plus Fixed Fee contract of this size?
The primary risks associated with this sole-source, Cost Plus Fixed Fee (CPFF) contract are twofold. Firstly, the sole-source nature bypasses competitive bidding, potentially leading to inflated prices and reduced value for money, as the government did not leverage market competition to secure the best possible rate. Secondly, the CPFF structure, while providing flexibility, carries the inherent risk of cost overruns. If Northrop Grumman's costs exceed initial projections, the government is obligated to cover these costs up to the agreed-upon fixed fee, necessitating robust oversight to manage expenditures and prevent inefficiencies from driving up the final price.
What is Northrop Grumman's track record with federal scientific and technical consulting contracts?
Northrop Grumman is a major defense contractor and technology company with extensive experience in various federal sectors, including scientific and technical consulting. While this specific contract data doesn't detail their performance history, the company routinely handles large, complex government contracts. Their track record typically involves providing advanced technological solutions, research support, and systems integration across defense, intelligence, and civilian agencies. Past performance reviews and contract award histories for Northrop Grumman would provide a more granular understanding of their specific successes and challenges in delivering scientific and technical consulting services to the federal government.
How does the contract's duration of 2100 days impact its overall value and risk?
The 2100-day duration (approximately 5.75 years) indicates a long-term, strategic need for the services provided. This extended period can offer value by fostering stability, allowing for deep integration of services, and potentially reducing transition costs associated with frequent contract changes. However, it also introduces risks. Over such a long timeframe, the government's requirements might evolve, making the contracted services less relevant or requiring costly modifications. Furthermore, market conditions, technological advancements, and contractor performance can change, potentially diminishing the value proposition or increasing the risk of suboptimal outcomes compared to shorter, more adaptable contract vehicles.
What are the implications of the 'Other Scientific and Technical Consulting Services' classification for contract oversight?
The broad classification of 'Other Scientific and Technical Consulting Services' (NAICS 541690) implies that contract oversight must be highly tailored to the specific deliverables outlined in the contract's statement of work. Unlike more standardized service categories, this classification suggests a wide range of potential activities, from pure research and analysis to strategic advice and implementation support. Oversight mechanisms must therefore focus on clearly defined performance metrics, milestones, and quality standards relevant to the unique nature of the services rendered. Robust communication between the contracting officer, program managers, and the contractor is essential to ensure alignment and manage expectations effectively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services
Product/Service Code: INSTRUMENTS AND LABORATORY EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $3,970,387,596
Exercised Options: $3,016,960,449
Current Obligation: $74,708,785
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2004-06-30
Current End Date: 2010-03-31
Potential End Date: 2010-03-31 00:00:00
Last Modified: 2023-05-01
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