CDC IT Support Contract Awarded to Northrop Grumman for $17.5M for Data Services

Contract Overview

Contract Amount: $17,540,438 ($17.5M)

Contractor: Northrop Grumman Information Technology Inc

Awarding Agency: General Services Administration

Start Date: 2005-05-18

End Date: 2008-07-31

Contract Duration: 1,170 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IT SUPPORT SERVICES FOR THE CDC, NCPHI FOR DATA RECEIPT AND TRANSFORMATION SERVICES

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30301, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $17.5 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC for work described as: IT SUPPORT SERVICES FOR THE CDC, NCPHI FOR DATA RECEIPT AND TRANSFORMATION SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract duration of approximately 3.25 years provides a stable period for service delivery. 3. The Time and Materials pricing structure may present cost control challenges if not closely managed. 4. Northrop Grumman's extensive experience in IT services positions them as a capable provider. 5. The contract's focus on data receipt and transformation is critical for public health information systems. 6. The award value of $17.5 million falls within a typical range for large-scale IT support contracts.

Value Assessment

Rating: good

The contract value of $17.5 million for over three years of IT support services appears reasonable given the scope of data receipt and transformation for the CDC. Benchmarking against similar large-scale IT support contracts for federal agencies suggests this award is within expected parameters. The Time and Materials (T&M) pricing model, while common, requires diligent oversight to ensure cost-effectiveness and prevent scope creep. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process typically fosters a competitive environment, driving down prices and encouraging innovation. The presence of multiple bidders suggests a healthy market for IT support services relevant to public health data management. The specific number of bidders is not provided, but the 'full and open' designation implies a significant level of competition.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of qualified contractors. This approach helps ensure that government funds are used efficiently by leveraging market forces to achieve best value.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits through enhanced capabilities in receiving and transforming critical public health data. This contract supports the National Center for Public Health Informatics (NCPHI), crucial for disease surveillance and response. Improved data processing can lead to more timely and accurate public health insights, benefiting the general population. The contract likely supports a workforce of IT professionals specializing in data management and analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not managed with strict oversight and clear task definitions.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness.
The contract's duration of over three years, while providing stability, also means a long-term commitment of funds that requires ongoing justification.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process that likely resulted in fair market pricing.
Northrop Grumman is a large, established government contractor with significant experience in IT services, suggesting a lower risk of performance failure.
The contract's focus on essential data services for the CDC highlights its importance to public health infrastructure.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT support services for data management and transformation. The federal IT services market is substantial, with agencies consistently investing in systems to manage, analyze, and secure vast amounts of data. Contracts like this are crucial for maintaining the operational integrity of public health information systems, enabling agencies like the CDC to fulfill their missions effectively. Comparable spending benchmarks for IT support services can vary widely based on scope, duration, and complexity, but a multi-year contract of this value for specialized data services is typical for a federal agency of the CDC's size.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal, with the primary award going to a large prime contractor. However, large prime contractors often engage small businesses for subcontracting opportunities, which could provide indirect benefits. Without specific subcontracting plans, the extent of this impact remains unknown.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), which awarded the contract through its Federal Acquisition Service. The contracting officer and program managers within the CDC would be responsible for monitoring performance, ensuring compliance with contract terms, and managing the T&M aspects to control costs. Transparency is facilitated through contract award databases, but detailed performance reports and cost tracking are typically internal agency documents. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

CDC IT Modernization Programs
Public Health Data Infrastructure
Federal Health IT Services
Data Analytics and Processing Contracts
Northrop Grumman IT Services Portfolio

Risk Flags

Time and Materials contract type requires diligent oversight to manage costs.
Lack of specific performance metrics in summary data.
Potential for scope creep in T&M contracts.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $17.5 million to NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC. IT SUPPORT SERVICES FOR THE CDC, NCPHI FOR DATA RECEIPT AND TRANSFORMATION SERVICES

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN INFORMATION TECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $17.5 million.

What is the period of performance?

Start: 2005-05-18. End: 2008-07-31.

What is the historical spending pattern for IT support services at the CDC, particularly for data receipt and transformation?

Historical spending data for IT support services at the CDC, especially for data receipt and transformation, would provide crucial context for evaluating the $17.5 million award to Northrop Grumman. Analyzing past contracts of similar scope and duration would reveal trends in pricing, contractor performance, and the evolution of technological needs. For instance, understanding if this contract represents an increase or decrease in spending for these specific services, or if it aligns with a broader IT modernization initiative, is key. Without access to detailed historical spending records, it's difficult to definitively benchmark this contract against previous investments or to identify any significant shifts in the agency's procurement strategy for critical data services. Such analysis would also help in assessing whether the current award reflects market inflation or changes in service requirements over time.

How does the Time and Materials (T&M) pricing structure for this contract compare to other IT support contracts awarded by GSA or the CDC?

The Time and Materials (T&M) pricing structure used for this $17.5 million CDC IT support contract is a common, albeit sometimes scrutinized, method in federal procurement. T&M contracts pay the contractor for the actual labor hours expended and the cost of materials used. Compared to fixed-price contracts, T&M offers flexibility but carries a higher risk of cost overruns if not managed diligently. For IT support services, especially those involving evolving data requirements, T&M can be advantageous for adapting to unforeseen technical challenges. However, agencies like GSA and CDC often implement strict oversight mechanisms, including labor hour ceilings and detailed reporting requirements, to mitigate these risks. Benchmarking this T&M contract against similar IT services awards would involve examining the average hourly rates, the ratio of labor to material costs, and the effectiveness of oversight controls employed by the agency to ensure cost efficiency and prevent scope creep.

What is Northrop Grumman's track record with federal IT support contracts, particularly those involving sensitive data management?

Northrop Grumman Information Technology Inc. has a substantial track record as a large federal contractor, frequently securing significant IT support and services contracts across various government agencies. Their experience often includes complex systems integration, cybersecurity, and data management solutions. For contracts involving sensitive data, such as those handled by the CDC, their history would likely include adherence to stringent security protocols and data handling regulations (e.g., HIPAA, FISMA). Evaluating their past performance on similar contracts would involve reviewing past performance evaluations (if publicly available), contract modifications, and any documented instances of outstanding success or challenges. Given their size and market presence, it is probable that Northrop Grumman possesses the necessary clearances, certifications, and expertise to manage the data receipt and transformation services required by the CDC's NCPHI.

What are the key performance indicators (KPIs) used to measure the success of this IT support contract for the CDC?

While the provided data does not specify the Key Performance Indicators (KPIs) for this contract, typical metrics for IT support services focused on data receipt and transformation would likely include: data accuracy rates, data processing turnaround times (latency), system uptime and availability, successful data integration rates, and adherence to data security protocols. For a contract with a Time and Materials structure, KPIs might also indirectly monitor efficiency by tracking the number of hours required to complete specific tasks against estimated benchmarks. The CDC's National Center for Public Health Informatics (NCPHI) would rely on these KPIs to ensure the contractor is meeting service level agreements (SLAs) and contributing effectively to public health surveillance and response efforts. Regular performance reviews and reporting would be essential for tracking progress against these KPIs.

How does the geographic location of the contract performance (Georgia) influence the cost and logistics of IT support services for the CDC?

The contract indicates performance in Georgia (SN: GEORGIA), which is relevant for understanding potential logistical considerations and cost factors, although the CDC itself is headquartered in Atlanta, Georgia. For IT support services, especially those involving data receipt and transformation, the physical location of the personnel performing the work can influence labor costs due to regional salary differences. Georgia, particularly the Atlanta metropolitan area, has a significant IT workforce, which could mean competitive labor rates compared to higher-cost regions like Silicon Valley or the Washington D.C. area. Logistically, having the service provider located in the same state as the primary agency (CDC) can facilitate collaboration, on-site support if needed, and potentially reduce travel expenses. However, for data services that can often be performed remotely, the geographic impact might be less pronounced than for hardware-centric or on-site support roles.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 4TCB75055304

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Parent Company: Titan II Inc. (UEI: 016435559)

Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,540,438

Exercised Options: $17,540,438

Current Obligation: $17,540,438

Parent Contract

Parent Award PIID: GS09K99BHD0009

IDV Type: GWAC

Timeline