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 ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP 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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