HHS Awards $41.3M for Research Facilitation Support to Northrop Grumman
Contract Overview
Contract Amount: $41,329,366 ($41.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Health and Human Services
Start Date: 2014-09-25
End Date: 2018-09-28
Contract Duration: 1,464 days
Daily Burn Rate: $28.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::CT::IGF RESEARCH FACILITATION TEAM SUPPORT
Place of Performance
Location: FAIRFIELD, SOLANO County, CALIFORNIA, 94534
Plain-Language Summary
Department of Health and Human Services obligated $41.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: IGF::CT::IGF RESEARCH FACILITATION TEAM SUPPORT Key points: 1. Contract awarded to a large, established defense contractor. 2. Spending is concentrated in Computer Systems Design Services. 3. Potential for cost overruns given Time and Materials pricing. 4. Long contract duration (4 years) may limit flexibility.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure presents a risk for cost control. Benchmarking against similar Computer Systems Design Services contracts is difficult without more detailed cost breakdowns, but the total award value is substantial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Time and Materials pricing model may not be the most effective for price discovery and cost containment.
Taxpayer Impact: Taxpayers may face increased costs due to the Time and Materials pricing, which can lead to higher-than-expected expenditures if not closely managed.
Public Impact
Supports critical research facilitation functions within HHS. Long-term contract may indicate a stable, ongoing need for these services. Award to a single large business raises questions about small business participation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Long contract duration
- Award to large business
Positive Signals
- Full and open competition
- Established contractor
Sector Analysis
This contract falls within the IT services sector, specifically Computer Systems Design Services. Spending benchmarks for similar services vary widely, but a $41.3M award over four years suggests a significant scope of work.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of small business participation in this specific award, which could be an area for improvement.
Oversight & Accountability
Oversight is crucial given the Time and Materials pricing. The Department of Health and Human Services' Office of the Assistant Secretary for Administration is responsible for managing this contract, and robust monitoring is needed to ensure value for money.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of specific performance metrics makes value assessment difficult.
- Limited visibility into small business participation.
- Long contract duration may reduce agility.
- Concentration of spending with one large contractor.
Tags
computer-systems-design-services, department-of-health-and-human-services, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $41.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. IGF::CT::IGF RESEARCH FACILITATION TEAM SUPPORT
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 (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $41.3 million.
What is the period of performance?
Start: 2014-09-25. End: 2018-09-28.
What specific research facilitation tasks are covered under this contract, and how do they align with HHS's strategic research goals?
The contract, 'IGF::CT::IGF RESEARCH FACILITATION TEAM SUPPORT,' likely encompasses a range of administrative and technical support services essential for the efficient operation of HHS research initiatives. This could include data management, logistical support, compliance assistance, and coordination among research teams. Understanding the precise deliverables is key to assessing how effectively this spending contributes to advancing HHS's broader research objectives and scientific endeavors.
How effectively has HHS managed the Time and Materials pricing to control costs and ensure value for the $41.3M awarded?
Effective management of Time and Materials (T&M) contracts requires rigorous oversight, detailed tracking of labor hours and material costs, and clear performance metrics. Without access to specific performance reports and cost-reimbursement data, it's difficult to definitively assess HHS's success. However, the inherent nature of T&M contracts necessitates proactive monitoring to prevent scope creep and ensure that expenditures remain aligned with the anticipated value and necessity of the services provided.
What is the long-term impact of awarding such a significant contract to a single large vendor on the broader ecosystem of research support services, including small businesses?
Awarding a substantial contract like this to a single large vendor can streamline service delivery but may limit opportunities for smaller, specialized firms to contribute. While large contractors can offer comprehensive capabilities, it's important for agencies to balance these awards with strategies that foster innovation and competition among small businesses. This ensures a diverse supplier base and can lead to more cost-effective and specialized solutions in the long run.
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: NIHJT2010001
Offers Received: 1
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $49,725,678
Exercised Options: $41,329,366
Current Obligation: $41,329,366
Subaward Activity
Number of Subawards: 263
Total Subaward Amount: $113,934,714
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200036W
IDV Type: GWAC
Timeline
Start Date: 2014-09-25
Current End Date: 2018-09-28
Potential End Date: 2019-09-28 00:00:00
Last Modified: 2022-06-27
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