HHS awards $24.3M for Global HIV/AIDS Support to Northrop Grumman

Contract Overview

Contract Amount: $24,285,407 ($24.3M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2011-07-15

End Date: 2014-09-29

Contract Duration: 1,172 days

Daily Burn Rate: $20.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SUPPORT TO DIV OF GLOBAL HIV/AIDS (GAP), CTR FOR GLOBAL HEALTH (CGH)

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SUPPORT TO DIV OF GLOBAL HIV/AIDS (GAP), CTR FOR GLOBAL HEALTH (CGH) Key points: 1. Contract awarded to a large, established defense contractor. 2. Services are in Computer Systems Design, a competitive sector. 3. Risk of cost overruns due to Time and Materials pricing. 4. Spending is within the Health sector, specifically global health initiatives.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure presents a risk for cost control. Benchmarking against similar Computer Systems Design Services contracts is difficult without more granular data on labor rates and hours.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Time and Materials (T&M) pricing type can limit the government's ability to control costs compared to fixed-price contracts.

Taxpayer Impact: Taxpayer funds are used for global health initiatives, with potential for cost inefficiencies due to the T&M contract type.

Public Impact

Supports critical global HIV/AIDS programs. Funds allocated to a major contractor for IT services. Contract duration spans over three years. Geographic location of performance is Georgia.

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
  • Support for a vital public health program

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for this category can vary widely based on the complexity and duration of the project.

Small Business Impact

The contract was not awarded to a small business. There is no indication of small business subcontracting goals or performance in the provided data.

Oversight & Accountability

Oversight would typically involve regular performance reviews and financial audits by the Centers for Disease Control and Prevention to ensure contract compliance and value for money.

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.
  • Lack of detailed performance metrics.
  • Limited visibility into small business participation.
  • Broad NAICS code makes precise benchmarking difficult.

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 $24.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SUPPORT TO DIV OF GLOBAL HIV/AIDS (GAP), CTR FOR GLOBAL HEALTH (CGH)

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 $24.3 million.

What is the period of performance?

Start: 2011-07-15. End: 2014-09-29.

What is the estimated cost per hour for the labor provided under this Time and Materials contract?

The provided data does not specify the estimated cost per hour for labor. Time and Materials contracts often have pre-negotiated hourly rates for different labor categories. Without these rates, it's impossible to assess the cost-effectiveness of the labor component or to benchmark it against industry standards.

How does the total contract value compare to similar IT support contracts for global health initiatives?

The total contract value of $24.3 million over approximately three years for global HIV/AIDS support is substantial. However, direct comparison to similar contracts is challenging without knowing the specific scope of work, deliverables, and the level of expertise required. The 'Computer Systems Design Services' NAICS code is broad.

What mechanisms are in place to ensure the effectiveness of the 'Computer Systems Design Services' provided?

Effectiveness is typically ensured through performance work statements, service level agreements, and regular performance evaluations by the contracting agency. While the contract was awarded under full and open competition, the Time and Materials pricing model places a greater onus on the government to actively monitor and manage contractor performance to ensure desired outcomes are achieved.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

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: $33,734,386

Exercised Options: $26,810,880

Current Obligation: $24,285,407

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSD200201037217I

IDV Type: IDC

Timeline

Start Date: 2011-07-15

Current End Date: 2014-09-29

Potential End Date: 2015-07-14 00:00:00

Last Modified: 2024-12-19

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