CDC Awards Northrop Grumman $29.2M for Computer Systems Design Services
Contract Overview
Contract Amount: $29,210,813 ($29.2M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2015-09-04
End Date: 2020-07-31
Contract Duration: 1,792 days
Daily Burn Rate: $16.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: CDC INFORMATION MANAGEMENT SERVICES IGF::OT::IGF
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30329
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $29.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: CDC INFORMATION MANAGEMENT SERVICES IGF::OT::IGF Key points: 1. Significant contract value of $29.2 million over nearly five years. 2. Northrop Grumman, a large established contractor, secured this award. 3. The contract falls under computer systems design services, a common IT need. 4. Awarded via full and open competition, suggesting a competitive process.
Value Assessment
Rating: good
The contract value of $29.2 million over 1792 days (approx. 5 years) suggests a moderate annual spend. Benchmarking against similar large-scale IT service contracts would be necessary for a precise pricing assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, with pricing driven by market forces rather than a lack of alternatives.
Public Impact
Supports critical information management systems for the CDC. Ensures continuity of essential public health IT services. Impacts the operational efficiency of a key federal health agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (nearly 5 years).
- Contract type is Time and Materials, which can lead to cost overruns if not managed carefully.
Positive Signals
- Awarded via full and open competition.
- Established contractor with a track record.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending in this area is substantial across federal agencies, supporting everything from data management to cybersecurity. Benchmarks for similar contracts would focus on the scope of services and duration.
Small Business Impact
The data indicates this contract was awarded to a large business (Northrop Grumman) and does not show any specific set-asides for small businesses. Therefore, the direct impact on small businesses in this specific award appears minimal.
Oversight & Accountability
The contract was awarded by the Centers for Disease Control and Prevention (CDC), a major agency within HHS. Oversight would typically involve program managers ensuring deliverables are met and contract terms are adhered to, with potential for audits by OIG.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Long contract duration (nearly 5 years).
- Time and Materials pricing structure.
- Potential for vendor lock-in with a large incumbent.
- Lack of specific small business participation noted.
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 $29.2 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. CDC INFORMATION MANAGEMENT SERVICES IGF::OT::IGF
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 $29.2 million.
What is the period of performance?
Start: 2015-09-04. End: 2020-07-31.
What specific IT systems or services are covered under this contract, and how critical are they to the CDC's mission?
The contract is for 'Computer Systems Design Services' (NAICS 541512). This broad category likely encompasses the design, development, integration, and maintenance of IT systems essential for public health data management, disease surveillance, and operational support. The criticality is high, as these systems underpin the CDC's ability to respond to health crises and conduct research.
Given the Time and Materials contract type, what measures are in place to control costs and prevent scope creep over the nearly five-year period?
Time and Materials (T&M) contracts require robust oversight. The CDC likely employs mechanisms such as defined labor categories with capped rates, detailed reporting requirements for hours and materials, and strong project management to monitor progress and control costs. Regular reviews and potential ceiling adjustments would be critical to manage this contract effectively.
How does the $29.2 million award compare to typical spending for similar IT system design services at agencies of the CDC's size and scope?
Without specific benchmarks for CDC's IT modernization or system design needs, a direct comparison is difficult. However, $29.2 million over nearly five years averages around $6 million annually. This figure seems reasonable for supporting complex IT infrastructure and services within a large, data-intensive federal health agency, assuming the scope is appropriately defined.
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: $29,210,813
Exercised Options: $29,210,813
Current Obligation: $29,210,813
Subaward Activity
Number of Subawards: 131
Total Subaward Amount: $68,945,708
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: HHSD200201037217I
IDV Type: IDC
Timeline
Start Date: 2015-09-04
Current End Date: 2020-07-31
Potential End Date: 2020-07-31 00:00:00
Last Modified: 2024-12-12
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