Northrop Grumman Awarded $19.7M for Bioinformatics Resource Center by NIH

Contract Overview

Contract Amount: $19,686,239 ($19.7M)

Contractor: Northrop Grumman Systems Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2009-09-30

End Date: 2014-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NEW AWARD FROM RFP NIH-NIAID-DMID-AI2008038 BIOINFORMATICS RESOURCE CENTER FOR INFECTIOUS DISEASES. THIS IS ONE OF FOUR AWARDS MADE.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: NEW AWARD FROM RFP NIH-NIAID-DMID-AI2008038 BIOINFORMATICS RESOURCE CENTER FOR INFECTIOUS DISEASES. THIS IS ONE OF FOUR AWARDS MADE. Key points: 1. This award is part of a larger initiative with four total awards. 2. The contract type is Cost Plus Fixed Fee, indicating shared risk. 3. The procurement was conducted under full and open competition. 4. The value of this single award is substantial for R&D in Biotechnology. 5. The contract duration is five years.

Value Assessment

Rating: good

The contract is a Cost Plus Fixed Fee type, which is common for R&D. Pricing will depend on actual costs incurred plus a fixed fee, making direct comparison difficult without detailed cost breakdowns. However, the total award value provides a benchmark for this type of service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. Multiple bidders likely participated, driving competitive pricing for the services required.

Taxpayer Impact: Taxpayer funds are being used for critical research infrastructure, with competition aiming to ensure value for money.

Public Impact

Supports critical infectious disease research through bioinformatics. Enhances national capabilities in biological data analysis. Potential for advancements in understanding and combating diseases. Funds advanced scientific infrastructure and expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
  • Lack of specific performance metrics in the provided data.
  • Potential for scope creep in long-term R&D projects.

Positive Signals

  • Awarded under full and open competition.
  • Supports a vital scientific research area.
  • Long-term contract provides stability for research efforts.

Sector Analysis

This award falls within the Research and Development in Biotechnology sector. Spending in this area is crucial for scientific advancement and public health. Benchmarks for similar large-scale bioinformatics support contracts are often in the multi-million dollar range over several years.

Small Business Impact

The data indicates this award was not set aside for small businesses and was awarded to a large corporation. There is no information provided on subcontracting opportunities for small businesses.

Oversight & Accountability

The award was made by the National Institutes of Health, a reputable agency within HHS. Standard oversight mechanisms for federal contracts should apply, including monitoring of costs and performance.

Related Government Programs

  • Research and Development in Biotechnology
  • Department of Health and Human Services Contracting
  • National Institutes of Health Programs

Risk Flags

  • Cost Plus Fixed Fee contract type.
  • Long contract duration (5 years).
  • R&D nature of work implies inherent uncertainty.
  • No specific performance metrics provided.
  • Potential for scope creep.

Tags

research-and-development-in-biotechnolog, department-of-health-and-human-services, md, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.7 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. NEW AWARD FROM RFP NIH-NIAID-DMID-AI2008038 BIOINFORMATICS RESOURCE CENTER FOR INFECTIOUS DISEASES. THIS IS ONE OF FOUR AWARDS MADE.

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 (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $19.7 million.

What is the period of performance?

Start: 2009-09-30. End: 2014-09-29.

What is the projected cost efficiency of this Cost Plus Fixed Fee contract given the R&D nature of the work?

Assessing cost efficiency for a Cost Plus Fixed Fee (CPFF) contract in R&D is challenging without detailed cost reports and performance metrics. The 'plus' component means the government reimburses allowable costs, and the 'fixed fee' is a predetermined profit. Efficiency hinges on effective cost management by the contractor and diligent oversight by the agency to ensure costs are reasonable and allocable to the contract objectives. Benchmarking against similar CPFF R&D contracts would be necessary for a more precise assessment.

What are the primary risks associated with the long duration and CPFF structure of this contract?

The primary risks include potential cost overruns, as the government bears the cost risk, and the contractor has less incentive to control expenses compared to fixed-price contracts. The long duration (5 years) increases the risk of scope creep, technological obsolescence, or shifts in research priorities that may not align with the original contract objectives. Ensuring robust change control and performance monitoring is crucial to mitigate these risks.

How effectively does this award contribute to the NIH's mission in infectious disease research?

This award directly supports the NIH's mission by funding a Bioinformatics Resource Center, which is essential for managing and analyzing the vast amounts of data generated in infectious disease research. By providing critical infrastructure and expertise, it enables researchers to accelerate discoveries, develop diagnostics, and create countermeasures. The competitive award process suggests a focus on securing high-quality services to maximize this contribution.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in Biotechnology

Product/Service Code: RESEARCH AND DEVELOPMENTN – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 12

Pricing Type: COST PLUS FIXED FEE (U)

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

Financial Breakdown

Contract Ceiling: $19,780,517

Exercised Options: $19,686,239

Current Obligation: $19,686,239

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline

Start Date: 2009-09-30

Current End Date: 2014-09-29

Potential End Date: 2018-08-15 00:00:00

Last Modified: 2023-10-02

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