Northrop Grumman awarded $9.87M for IT services by NIH, extending contract through May 2009
Contract Overview
Contract Amount: $9,873,633 ($9.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2007-09-14
End Date: 2009-05-31
Contract Duration: 625 days
Daily Burn Rate: $15.8K/day
Number of Offers Received: 1
Pricing Type: OTHER (NONE OF THE ABOVE)
Sector: IT
Official Description: REVISED C-2368 FOR LSSB/DCSS/CIT WITH A POP THROUGH 11/30/07.
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $9.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: REVISED C-2368 FOR LSSB/DCSS/CIT WITH A POP THROUGH 11/30/07. Key points: 1. Contract value appears reasonable for complex IT systems design and support. 2. Limited competition may have impacted final pricing. 3. Contract duration of 625 days suggests a need for sustained support. 4. Services align with NIH's mission to advance health research. 5. Geographic concentration in Maryland for service delivery. 6. Contractor has a significant presence in the federal IT sector.
Value Assessment
Rating: good
The contract value of $9.87 million for computer systems design services over approximately two years appears within a reasonable range for a large federal agency like NIH. Benchmarking against similar contracts for complex IT support and development would provide a more precise value-for-money assessment. However, given the scope implied by 'LSSB/DCSS/CIT', the pricing is likely competitive for the specialized nature of the work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The competition level for this contract is not explicitly detailed in the provided data. If this was a sole-source or limited competition award, it could suggest a lack of readily available alternatives or a specific need for the incumbent's capabilities. Conversely, if it underwent a broader competition, the number of bidders would be crucial to understanding price discovery and potential savings.
Taxpayer Impact: Limited competition can sometimes lead to higher costs for taxpayers if robust market research and competitive bidding processes are not fully utilized.
Public Impact
Benefits the National Institutes of Health (NIH) by providing essential IT support for its research and administrative functions. Services delivered likely include system design, integration, and potentially maintenance for critical health information systems. Geographic impact is concentrated in Maryland, where NIH facilities are primarily located. Workforce implications involve skilled IT professionals employed by Northrop Grumman to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creep occurs without adequate oversight.
- Reliance on a single contractor could lead to vendor lock-in.
- Limited transparency on competition details may obscure true value for money.
Positive Signals
- Contract awarded to a well-established federal contractor with a history of performance.
- Contract duration suggests a stable requirement and potential for efficient service delivery.
- Services directly support the critical mission of the National Institutes of Health.
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. The federal IT market is vast, with agencies like NIH being significant spenders on systems integration, software development, and IT support to manage complex health data and research initiatives. Comparable spending benchmarks would involve analyzing other large-scale IT service contracts awarded by federal health agencies.
Small Business Impact
The provided data does not indicate if this contract included small business set-asides or subcontracting goals. Without this information, it's difficult to assess the impact on the small business ecosystem. Large prime contractors like Northrop Grumman often have subcontracting plans, but their specific utilization of small businesses on this particular award is unknown.
Oversight & Accountability
Oversight mechanisms would typically involve contract officers, program managers within NIH, and potentially the agency's Inspector General. Accountability measures are tied to performance metrics and deliverables outlined in the contract. Transparency is enhanced through contract databases like FPDS, though detailed performance reports are often internal.
Related Government Programs
- NIH IT Support Services
- Federal Health IT Contracts
- Computer Systems Design and Related Services
- Northrop Grumman Federal Contracts
Risk Flags
- Contract duration is lengthy.
- Competition details are not fully specified.
- Specific systems supported are not detailed.
Tags
it-services, computer-systems-design, northrop-grumman, department-of-health-and-human-services, national-institutes-of-health, maryland, other-contract-type, large-contract, federal-agency, health-it
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $9.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. REVISED C-2368 FOR LSSB/DCSS/CIT WITH A POP THROUGH 11/30/07.
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 $9.9 million.
What is the period of performance?
Start: 2007-09-14. End: 2009-05-31.
What specific IT systems or projects does this contract support within the NIH?
The contract data indicates 'REVISED C-2368 FOR LSSB/DCSS/CIT'. While 'LSSB/DCSS/CIT' are acronyms, they likely refer to specific IT systems or service categories such as Logistics Support, Data Center Services, or Communication and Information Technology. Without further context or access to the contract's Statement of Work (SOW), the precise systems supported remain unspecified. However, given the agency (NIH) and the service category (Computer Systems Design Services), it is reasonable to infer that these systems are critical for managing health research data, supporting scientific computing, or facilitating internal administrative operations essential for the NIH's mission.
How does the $9.87 million contract value compare to similar IT services contracts awarded by the NIH or other health agencies?
A direct comparison of the $9.87 million contract value requires access to a broader dataset of similar contracts, including their scope, duration, and specific services. However, for a contract spanning approximately two years (September 2007 to May 2009) for complex IT systems design and support at a major federal agency like NIH, this value is not inherently excessive. Larger, multi-year IT contracts for system development, integration, and maintenance can easily reach tens or hundreds of millions of dollars. This contract's value suggests a focused scope, possibly for a specific set of systems or a particular phase of a larger project, rather than an agency-wide IT overhaul.
What is Northrop Grumman's track record with the NIH and other federal health agencies?
Northrop Grumman Systems Corporation is a major defense contractor with a significant presence across various federal agencies, including health. Their track record with the NIH would involve reviewing past and current contracts for IT services, research support, and other relevant areas. Generally, large contractors like Northrop Grumman have extensive experience managing complex federal contracts, adhering to security requirements, and delivering technical solutions. A detailed analysis would involve examining performance evaluations, past issues, and the breadth of their engagement with the health sector to assess their reliability and capability.
What are the potential risks associated with this contract, and how might they be mitigated?
Potential risks include scope creep, where the project's requirements expand beyond the original agreement, leading to cost overruns and schedule delays. Another risk is vendor lock-in, where the agency becomes overly dependent on Northrop Grumman's proprietary systems or expertise, making future transitions difficult. Technical risks, such as system integration challenges or cybersecurity vulnerabilities, are also present. Mitigation strategies would involve robust contract management, clear definition of scope and deliverables, regular performance reviews, strong change control processes, and ensuring adequate knowledge transfer to government personnel or future contractors.
How does this contract align with the NIH's strategic goals related to health research and information technology?
This contract directly supports the NIH's mission by providing essential IT infrastructure and services. The National Institutes of Health relies heavily on advanced IT systems for managing vast amounts of research data, facilitating collaboration among scientists, supporting clinical trials, and disseminating health information. Contracts for computer systems design and related services are crucial for developing, maintaining, and modernizing these systems. Ensuring these IT capabilities are robust, secure, and efficient directly contributes to the NIH's strategic objectives of advancing biomedical research and improving human health.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: MISCELLANEOUS
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 7575 COLSHIRE DR, MCLEAN, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,144,602
Exercised Options: $11,144,602
Current Obligation: $9,873,633
Contract Characteristics
Multi-Year Contract: Yes
Parent Contract
Parent Award PIID: 263010066
IDV Type: IDC
Timeline
Start Date: 2007-09-14
Current End Date: 2009-05-31
Potential End Date: 2009-05-31 00:00:00
Last Modified: 2014-04-11
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