HHS Awards Northrop Grumman $23.7M for CDC Electronic Communication Support
Contract Overview
Contract Amount: $23,737,529 ($23.7M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2015-08-25
End Date: 2021-02-26
Contract Duration: 2,012 days
Daily Burn Rate: $11.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: SUPPORT FOR NCIRD'S ELECTRONIC COMMUNICATION ACTIVITIES 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 $23.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SUPPORT FOR NCIRD'S ELECTRONIC COMMUNICATION ACTIVITIES IGF::OT::IGF Key points: 1. Contract awarded to a large, established defense contractor. 2. Services fall under Computer Systems Design, a competitive IT sector. 3. Potential risk associated with long-term Time and Materials contract. 4. Spending spans multiple fiscal years, indicating ongoing need.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure, especially for a long duration, can lead to cost overruns if not closely managed. Benchmarking against similar IT service contracts is difficult without detailed task breakdowns.
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 use of Time and Materials pricing may limit the government's ability to secure fixed cost savings.
Taxpayer Impact: Taxpayers may face higher costs due to the Time and Materials pricing model, which lacks a fixed ceiling and could escalate if not managed effectively.
Public Impact
Supports critical communication infrastructure for the CDC's National Center for Immunization and Respiratory Diseases. Long-term contract duration (2015-2021) suggests sustained operational requirements. Potential for cost escalation due to Time and Materials contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Long contract duration
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition
- Awarded to a reputable contractor
- Supports essential public health functions
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for similar services vary widely based on complexity and duration, but $23.7M over several years is substantial.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in the provided data.
Oversight & Accountability
The contract was awarded by the Centers for Disease Control and Prevention (CDC), a component of HHS. Oversight would typically involve program managers ensuring deliverables meet requirements and monitoring expenditures, especially given the T&M structure.
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 Time and Materials pricing.
- Lack of detailed performance metrics in the provided data.
- Long contract duration may indicate a lack of flexibility or innovation.
- No clear indication of small business subcontracting.
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 $23.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SUPPORT FOR NCIRD'S ELECTRONIC COMMUNICATION ACTIVITIES 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 $23.7 million.
What is the period of performance?
Start: 2015-08-25. End: 2021-02-26.
What was the specific scope of 'Electronic Communication Activities' supported by this contract?
The provided data does not detail the specific electronic communication activities. This could range from network infrastructure maintenance and software development to data management and cybersecurity services supporting NCIRD's mission-critical operations.
How effectively was the Time and Materials pricing managed to control costs over the contract's lifespan?
Effectiveness of T&M cost control is not detailed. Success depends heavily on rigorous oversight, clear task definitions, and contractor efficiency. Without specific performance data or audit reports, assessing cost-effectiveness is challenging.
Did the full and open competition result in competitive pricing compared to other potential vendors for these services?
While full and open competition suggests a competitive process, the Time and Materials pricing model inherently carries less price certainty than fixed-price contracts. The ultimate value depends on the efficiency and necessity of the hours billed.
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: 2
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: $24,295,726
Exercised Options: $23,773,066
Current Obligation: $23,737,529
Actual Outlays: $2,370,690
Subaward Activity
Number of Subawards: 115
Total Subaward Amount: $96,638,575
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: HHSD200201037217I
IDV Type: IDC
Timeline
Start Date: 2015-08-25
Current End Date: 2021-02-26
Potential End Date: 2021-02-26 00:00:00
Last Modified: 2020-07-14
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