HHS awards $2.39B to Leidos for NIH facilities support over 12 years

Contract Overview

Contract Amount: $2,390,378,571 ($2.4B)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2001-09-15

End Date: 2013-03-31

Contract Duration: 4,215 days

Daily Burn Rate: $567.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.39 billion to LEIDOS BIOMEDICAL RESEARCH INC for work described as: Key points: 1. Significant long-term contract for essential facilities support services. 2. Leidos Biomedical Research Inc. is the sole awardee. 3. Potential for cost overruns given the Cost Plus Award Fee structure. 4. Services are critical for NIH operations, indicating high sector importance.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can lead to higher costs than fixed-price contracts if not managed carefully. The award fee mechanism incentivizes performance but requires robust oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under Simplified Acquisition Procedures, suggesting a limited competition approach. This method may not yield the best price discovery compared to full and open competition.

Taxpayer Impact: The long duration and cost-plus structure warrant close monitoring to ensure taxpayer funds are used efficiently and effectively.

Public Impact

Ensures continuity of critical facilities operations for the National Institutes of Health. Supports research infrastructure vital for public health advancements. Long-term commitment provides stability for service provider and government planning.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure
Limited competition
Long contract duration

Positive Signals

Essential services for critical research agency
Award fee incentivizes performance

Sector Analysis

This contract falls under facilities support services, a broad category essential for the functioning of large government agencies like the NIH. Spending in this sector is generally stable but can vary based on agency needs and infrastructure investments.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as both 'ss' (small business set-aside) and 'sb' (small business) are false. There is no direct indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The Cost Plus Award Fee structure necessitates strong government oversight to manage costs and ensure performance objectives are met. Regular reviews of award fee determinations are crucial for accountability.

Related Government Programs

Facilities Support Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for cost overruns due to Cost Plus Award Fee structure.
Limited competition may not result in the best possible pricing.
Long contract duration increases exposure to changing needs and technologies.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.39 billion to LEIDOS BIOMEDICAL RESEARCH INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is LEIDOS BIOMEDICAL RESEARCH INC.

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 $2.39 billion.

What is the period of performance?

Start: 2001-09-15. End: 2013-03-31.

What specific metrics are used to determine the award fee for Leidos Biomedical Research Inc.?

The award fee is typically determined by performance against pre-defined metrics and objectives outlined in the contract. These often include factors like timeliness of service, quality of work, cost control, and customer satisfaction. A detailed review of the contract's Performance Work Statement (PWS) and the award fee plan would provide specific details on these metrics.

What are the primary risks associated with a Cost Plus Award Fee contract for facilities support?

The primary risks include potential cost overruns, as the contractor is reimbursed for allowable costs plus a fee. There's also a risk of the contractor not being sufficiently incentivized to control costs if the award fee criteria are not stringent or well-monitored. Inadequate oversight can lead to reduced value for taxpayer money.

How does this long-term contract ensure the effectiveness of NIH's research facilities?

The long-term nature of the contract provides stability and continuity for essential facilities operations, minimizing disruptions to NIH's research activities. It allows for specialized knowledge and processes to be developed and maintained by the contractor, contributing to the efficient upkeep and functionality of complex research infrastructure.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: MILLER DR BLDG 428, FREDERICK, MD, 06

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $90,360,793,034

Exercised Options: $75,544,948,778

Current Obligation: $2,390,378,571

Timeline