CDC's $22.8M NCHHSTP Informatics Services contract awarded to Northrop Grumman for computer systems design

Contract Overview

Contract Amount: $22,807,307 ($22.8M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2011-06-23

End Date: 2015-08-31

Contract Duration: 1,530 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NCHHSTP INFORMATICS SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: NCHHSTP INFORMATICS SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 1530 days (over 4 years) indicates a significant, long-term need for these services. 3. The use of Time and Materials (T&M) pricing can pose a risk of cost overruns if not closely managed. 4. Northrop Grumman, a large established contractor, is likely to have the capacity and expertise for this complex IT service. 5. The contract's focus on informatics services aligns with the CDC's mission to leverage data for public health. 6. The award value of $22.8 million represents a substantial investment in IT infrastructure and support for public health initiatives.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable informatics service contracts. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs compared to fixed-price contracts if not managed diligently. The total award value of $22.8 million over approximately four years suggests a moderate annual spend for complex IT services. Further analysis would require understanding the specific deliverables and the efficiency of resource utilization under the T&M model.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 4 bidders (no) suggests a reasonable level of competition for this IT services requirement. A competitive bidding process generally helps in achieving fair market prices and encourages contractors to offer their best value propositions.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces, ensuring that federal dollars are used more efficiently.

Public Impact

The National Center for HIV/AIDS, Viral Hepatitis, STD, and TB Prevention (NCHHSTP) is the primary beneficiary, receiving essential informatics support. Services delivered likely include data management, system development, and IT support crucial for public health surveillance and program management. The geographic impact is national, supporting CDC's mission across the United States. The contract supports a workforce of IT professionals and analysts, contributing to the specialized IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not closely monitored and controlled.
The long duration of the contract (1530 days) requires sustained oversight to ensure continued value and performance.
Dependence on a single large contractor for critical informatics services could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Northrop Grumman is a well-established contractor with significant experience in government IT services.
The contract addresses a critical need for informatics support within the CDC's public health mission.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. The federal IT services market is vast, with agencies consistently investing in systems to manage data, improve operations, and enhance cybersecurity. Comparable spending benchmarks for similar informatics and IT support contracts within federal health agencies would typically range from millions to tens of millions of dollars annually, depending on the scope and complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense and IT contractor, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specifically mandated or pursued by the prime contractor. The focus is on large-scale IT solutions rather than fostering small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Centers for Disease Control and Prevention (CDC) contracting officers and program managers. Accountability measures are typically embedded in the contract's performance work statement (PWS), with regular reviews and reporting requirements. Transparency is facilitated through contract award databases like FPDS. The Inspector General for the Department of Health and Human Services (HHS) would have jurisdiction for audits and investigations if any issues of fraud, waste, or abuse arise.

Related Government Programs

CDC Public Health Informatics
Health IT Services
Federal IT Modernization Programs
Computer Systems Design Contracts
Department of Health and Human Services IT Spending

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for sustained oversight due to long contract duration.
Reliance on a single large contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.8 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. NCHHSTP INFORMATICS SERVICES

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 $22.8 million.

What is the period of performance?

Start: 2011-06-23. End: 2015-08-31.

What specific informatics services were delivered under this contract?

While the specific details of the services rendered are not fully elaborated in the provided data, the contract's description as 'NCHHSTP INFORMATICS SERVICES' and its NAICS code '541512' (Computer Systems Design Services) indicate a broad range of IT support. This likely encompassed activities such as the design, development, implementation, and maintenance of computer systems and software relevant to the National Center for HIV/AIDS, Viral Hepatitis, STD, and TB Prevention's mission. This could include database management, data analysis tools, network infrastructure support, cybersecurity measures, and the development of user interfaces for public health data systems. The Time and Materials (T&M) pricing structure suggests that the scope might have evolved or required flexibility in resource allocation, common in complex IT development and support projects.

How does the $22.8 million award compare to similar informatics contracts at the CDC or HHS?

The $22.8 million award for NCHHSTP Informatics Services over its duration (approximately 4 years) represents a significant but not extraordinary investment for a large federal health agency like the CDC. Comparable informatics and IT support contracts within HHS can range widely, from smaller, specialized task orders to multi-year, multi-hundred-million-dollar enterprise-wide agreements. For instance, contracts supporting electronic health records (EHR) implementation, large-scale data warehousing, or national health surveillance systems often exceed this value. This particular contract appears to be a substantial, focused investment in supporting a specific center's (NCHHSTP) critical data and IT needs, falling within the mid-to-upper tier for specialized informatics services.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred. If the project scope is not clearly defined, or if project management is weak, the contractor may expend more hours or resources than initially anticipated, leading to a higher final cost. For the government, this necessitates robust oversight to ensure efficient work practices, prevent scope creep without proper modification, and verify the necessity and reasonableness of all billed hours and materials. Without stringent monitoring, T&M contracts can become significantly more expensive than initially projected.

What is Northrop Grumman's track record with federal IT service contracts, particularly with the CDC?

Northrop Grumman is a major aerospace and defense contractor with extensive experience in providing IT services to various U.S. federal agencies, including the Department of Health and Human Services (HHS) and its components like the CDC. Their track record typically involves large-scale system integration, cybersecurity solutions, data management, and IT infrastructure support. While specific performance details for this particular $22.8 million contract are not provided, Northrop Grumman generally possesses the resources and established processes to handle complex government IT requirements. Past performance reviews and contract award histories available through federal procurement databases would offer more granular insights into their specific successes and challenges with similar contracts.

How has federal spending on computer systems design services (NAICS 541512) trended over the past decade?

Federal spending on computer systems design services (NAICS 541512) has generally shown a consistent upward trend over the past decade, reflecting the increasing reliance of government agencies on technology to fulfill their missions. Agencies across all sectors, including defense, health, and civilian services, have invested heavily in modernizing legacy systems, enhancing cybersecurity, developing cloud-based solutions, and improving data analytics capabilities. While specific annual figures fluctuate based on budget appropriations and strategic priorities, the overall demand for these services remains robust. Factors driving this trend include digital transformation initiatives, the need for advanced data processing for policy and operational insights, and the ongoing evolution of IT threats requiring sophisticated defense mechanisms.

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: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

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: $23,246,819

Exercised Options: $23,246,819

Current Obligation: $22,807,307

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HHSD200201037217I

IDV Type: IDC

Timeline