CDC's $66.8M Electronic Communication Contract Awarded to Northrop Grumman

Contract Overview

Contract Amount: $66,788,664 ($66.8M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2011-06-15

End Date: 2015-09-01

Contract Duration: 1,539 days

Daily Burn Rate: $43.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SUPPORT FOR CDC'S ELECTRONIC COMMUNICATION ACTIVITIES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $66.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SUPPORT FOR CDC'S ELECTRONIC COMMUNICATION ACTIVITIES Key points: 1. Contract value of $66.8M for IT support services. 2. Awarded via full and open competition. 3. Potential risk associated with Time and Materials pricing. 4. Services fall under Computer Systems Design.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure presents a risk for cost control. Benchmarking against similar IT support contracts is difficult without detailed labor rates and hours.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the Time and Materials (T&M) contract type may limit price discovery and cost certainty.

Taxpayer Impact: Taxpayer funds are utilized for IT support services. The T&M structure could lead to higher costs if not managed effectively.

Public Impact

Ensures continued electronic communication capabilities for the CDC. Supports critical public health information dissemination. IT infrastructure maintenance and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Time and Materials pricing
  • Lack of specific performance metrics in provided data

Positive Signals

  • Full and open competition
  • Established contractor

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services. Spending benchmarks for similar IT support contracts vary widely based on scope and complexity.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false).

Oversight & Accountability

Oversight would typically be managed by the Department of Health and Human Services and the Centers for Disease Control and Prevention contracting officers. The contract type may require diligent monitoring.

Related Government Programs

  • Computer Systems Design Services
  • Department of Health and Human Services Contracting
  • Centers for Disease Control and Prevention Programs

Risk Flags

  • Potential for cost overruns due to T&M pricing
  • Limited transparency on specific labor rates
  • No indication of small business participation
  • Contract duration is substantial (1539 days)

Tags

computer-systems-design-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 $66.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SUPPORT FOR CDC'S ELECTRONIC COMMUNICATION ACTIVITIES

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 $66.8 million.

What is the period of performance?

Start: 2011-06-15. End: 2015-09-01.

What is the estimated cost per hour or per labor category for this Time and Materials contract?

The provided data does not specify the cost per hour or per labor category for this Time and Materials contract. This information is crucial for assessing the value and potential cost overruns. Without it, a detailed per-unit cost benchmark is not possible.

How effectively were cost controls implemented given the Time and Materials pricing structure?

The effectiveness of cost controls for a Time and Materials contract hinges on robust oversight and detailed tracking of labor hours and material costs. Without specific performance reports or audits, it's difficult to definitively assess the effectiveness of cost controls employed by the CDC.

What was the competitive landscape like for this specific IT support service requirement?

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that multiple bidders were likely considered. However, the specific number of bids received and the nature of the competition are not detailed, making it hard to gauge the intensity of the competitive landscape.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2010N11852

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $72,268,459

Exercised Options: $72,268,459

Current Obligation: $66,788,664

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSD200201037217I

IDV Type: IDC

Timeline

Start Date: 2011-06-15

Current End Date: 2015-09-01

Potential End Date: 2015-09-01 00:00:00

Last Modified: 2024-12-09

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