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 Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP 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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