HHS Awards $32.6M for NCCDPHP Information Systems Support to Northrop Grumman

Contract Overview

Contract Amount: $32,592,107 ($32.6M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2011-10-18

End Date: 2017-06-30

Contract Duration: 2,082 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFORMATION SYSTEMS SUPPORT FOR NCCDPHP

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: INFORMATION SYSTEMS SUPPORT FOR NCCDPHP Key points: 1. Contract awarded to a single large business, raising questions about small business participation. 2. The contract spans nearly six years, indicating a long-term need for these services. 3. The 'Computer Systems Design Services' NAICS code suggests a competitive market, but the award type needs review. 4. Time and Materials pricing structure can pose risks if not managed carefully.

Value Assessment

Rating: fair

The contract's value of $32.6 million over nearly six years averages approximately $5.4 million annually. Benchmarking this against similar IT support contracts would be necessary to assess its value comprehensively.

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 specific award type ('Delivery Order') needs further examination to understand its implications on competition.

Taxpayer Impact: Taxpayer funds are being used for essential information systems support. The effectiveness of the competition and pricing structure will determine the overall value for taxpayers.

Public Impact

Ensures continuity of critical information systems for public health initiatives. Supports the Centers for Disease Control and Prevention's mission. Potential for cost overruns due to Time and Materials pricing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Time and Materials pricing
  • Lack of small business participation noted

Positive Signals

  • Full and open competition
  • Long-term support for critical agency functions

Sector Analysis

The IT sector, particularly 'Computer Systems Design Services,' is dynamic. Benchmarks for similar long-term support contracts are crucial for evaluating cost-effectiveness and ensuring competitive pricing.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss=false, sb=false). Further analysis is needed to determine if opportunities were missed for small business participation in this IT services contract.

Oversight & Accountability

The award type is a 'Delivery Order,' which implies it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the management of this order and its alignment with the parent contract's terms.

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 visibility into small business participation
  • Long contract duration may reduce flexibility
  • Need for detailed performance monitoring

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 $32.6 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. INFORMATION SYSTEMS SUPPORT FOR NCCDPHP

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 $32.6 million.

What is the period of performance?

Start: 2011-10-18. End: 2017-06-30.

What is the specific nature of the 'INFORMATION SYSTEMS SUPPORT FOR NCCDPHP' and how critical is it to the CDC's operations?

The National Center for Chronic Disease Prevention and Health Promotion (NCCDPHP) relies on robust information systems for data collection, analysis, and dissemination of public health information. This support is critical for tracking disease trends, managing public health programs, and informing policy decisions, directly impacting the CDC's ability to fulfill its public health mission.

What are the potential risks associated with the Time and Materials (T&M) pricing structure for this contract?

Time and Materials contracts carry inherent risks of cost escalation if not closely monitored. Without fixed price ceilings or strong performance metrics, the contractor may have less incentive to control labor hours or material costs, potentially leading to higher overall expenditures for the government than anticipated.

How effectively did the 'full and open competition' process ensure competitive pricing for these IT services?

While 'full and open competition' theoretically maximizes the pool of potential bidders, the actual effectiveness in ensuring competitive pricing depends on the specific requirements, the clarity of the solicitation, and the number and quality of bids received. Further analysis of the bidding process and the final negotiated price against market rates would be needed to confirm its effectiveness.

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: 6

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: $38,833,756

Exercised Options: $38,833,756

Current Obligation: $32,592,107

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSD200201037217I

IDV Type: IDC

Timeline

Start Date: 2011-10-18

Current End Date: 2017-06-30

Potential End Date: 2017-06-30 00:00:00

Last Modified: 2024-12-18

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