Leidos awarded $1.01B for worldwide military family counseling, with 8 bidders competing

Contract Overview

Contract Amount: $1,013,331,269 ($1.0B)

Contractor: Leidos, Inc.

Awarding Agency: General Services Administration

Start Date: 2021-02-01

End Date: 2027-01-31

Contract Duration: 2,190 days

Daily Burn Rate: $462.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: MILITARY AND FAMILY LIFE COUNSELING. REQUIREMENT FOR WORLDWIDE NON MEDICAL CONFIDENTIAL COUNSELING SERVICES.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $1.01 billion to LEIDOS, INC. for work described as: MILITARY AND FAMILY LIFE COUNSELING. REQUIREMENT FOR WORLDWIDE NON MEDICAL CONFIDENTIAL COUNSELING SERVICES. Key points: 1. The contract's cost-plus-award-fee structure incentivizes performance but requires careful monitoring of award fees. 2. With 8 bidders, the competition level suggests a healthy market for these specialized services. 3. The contract duration of 5 years indicates a long-term commitment to these critical support services. 4. The broad scope of 'worldwide' services implies significant logistical and management complexity. 5. The 'Other Individual and Family Services' NAICS code suggests a focus on non-medical, supportive interventions.

Value Assessment

Rating: good

The total contract value of $1.01 billion over five years for worldwide non-medical counseling services appears reasonable given the scope. Benchmarking against similar large-scale support contracts for military families suggests this is within expected ranges. The cost-plus-award-fee (CPAF) pricing structure allows for flexibility and performance incentives, but requires diligent oversight to ensure fair pricing and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 bidders participating. This indicates a robust competitive environment for providing these specialized counseling services. The presence of multiple bidders generally leads to better price discovery and potentially more innovative solutions, benefiting the government.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and improving service quality through market forces.

Public Impact

Military personnel and their families worldwide will benefit from confidential, non-medical counseling services. The services aim to enhance the well-being and resilience of military communities. Geographic impact is global, supporting service members and families stationed domestically and abroad. The contract supports a workforce of counselors and support staff, potentially creating or sustaining jobs in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep in 'worldwide' services if not tightly managed.
  • Ensuring consistent quality of care across diverse global locations presents a challenge.
  • Monitoring award fee payouts under the CPAF structure requires robust performance metrics.

Positive Signals

  • Full and open competition suggests a strong market offering competitive pricing.
  • The long contract duration provides stability for service delivery.
  • The focus on non-medical counseling addresses a critical support need for military families.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically focusing on individual and family services. The market for government contracting in support services for military and veteran populations is substantial. This contract represents a significant portion of spending within the niche of non-medical support services, indicating a mature market with established providers like Leidos.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While there is no direct small business set-aside, the prime contractor, Leidos, may engage small businesses for subcontracting opportunities to fulfill the broad service requirements. The impact on the small business ecosystem would depend on Leidos's subcontracting plan and the availability of small businesses capable of providing specialized counseling services globally.

Oversight & Accountability

Oversight is likely managed by the General Services Administration (GSA) Federal Acquisition Service, which awarded the contract. Performance monitoring, quality assurance, and financial oversight would be critical given the contract's value and global scope. The Inspector General's office for the relevant agency (potentially GSA or the Department of Defense, depending on the ultimate client) would have jurisdiction for investigating fraud, waste, or abuse.

Related Government Programs

  • Military OneSource Program
  • TRICARE Behavioral Health Services
  • Department of Defense Family Support Programs
  • Veteran and Family Support Services

Risk Flags

  • Potential for inconsistent service quality across diverse global locations.
  • Complexity in managing a worldwide service delivery network.
  • Ensuring data privacy and security across international jurisdictions.
  • Effectiveness of award fee structure in driving desired performance outcomes.

Tags

defense, family-support, counseling-services, non-medical, global, cost-plus-award-fee, full-and-open-competition, large-contract, general-services-administration, leidos

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $1.01 billion to LEIDOS, INC.. MILITARY AND FAMILY LIFE COUNSELING. REQUIREMENT FOR WORLDWIDE NON MEDICAL CONFIDENTIAL COUNSELING SERVICES.

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $1.01 billion.

What is the period of performance?

Start: 2021-02-01. End: 2027-01-31.

What is Leidos's track record in providing similar large-scale support services to the federal government, particularly within the defense or family support sectors?

Leidos has a significant track record in providing a wide array of services to the federal government, including IT, logistics, and professional services. They are a major defense contractor and have experience managing complex, global operations. Their portfolio often includes health and human services contracts, making them a plausible candidate for large-scale family support initiatives. Specific experience with military family support programs, while not detailed here, would be a key factor in their past performance evaluations for this specific contract. Reviewing their past performance on similar contracts, including any awards or penalties, would provide further insight into their capabilities and reliability in delivering these critical services.

How does the cost-plus-award-fee (CPAF) structure compare to other contract types used for similar services, and what are the implications for value?

The Cost-Plus-Award-Fee (CPAF) structure is common for services where performance outcomes are critical and can be objectively measured, but precise costs are difficult to predict upfront. It allows the contractor to recover allowable costs plus a fee that is composed of a fixed base amount and a variable award amount, contingent upon meeting or exceeding performance targets. Compared to fixed-price contracts, CPAF offers more flexibility for the contractor and can incentivize higher quality performance. However, it requires robust government oversight to ensure costs are reasonable and that award fees are justified. For taxpayers, CPAF can offer good value if performance incentives are well-defined and achieved, leading to better service outcomes than might be obtained under a less incentivized contract type. Conversely, poorly managed CPAF contracts can lead to cost overruns if oversight is lax.

What are the primary risks associated with managing a worldwide contract for counseling services, and how are they mitigated?

Managing a worldwide contract for counseling services presents several key risks. These include ensuring consistent quality and cultural competency of counselors across diverse global locations, maintaining confidentiality and data security in various legal and technological environments, managing logistical challenges of deployment and support, and adapting services to the unique needs of different military communities. Mitigation strategies typically involve rigorous vetting and training of personnel, establishing clear performance standards and quality assurance protocols, implementing robust communication and reporting systems, and maintaining strong relationships with local military leadership. The contract's structure, including performance metrics and award fees, also serves as a mechanism to incentivize the contractor to proactively manage these risks.

How does the spending on this contract compare to historical federal spending on military family support programs?

The $1.01 billion awarded to Leidos represents a significant investment in military family support. To contextualize this, historical spending data on similar programs, such as Military OneSource or other Department of Defense family readiness initiatives, would be necessary. Without direct comparative data, it's challenging to definitively state if this represents an increase or decrease in overall federal investment. However, the scale of this single contract suggests a substantial commitment to providing comprehensive, worldwide non-medical counseling. Analyzing trends in federal budgets allocated to family support over the past decade, alongside the number and scope of contracts awarded, would provide a clearer picture of the government's evolving priorities and spending patterns in this area.

What are the potential implications of 'non-medical' counseling versus 'medical' behavioral health services for service members and their families?

Non-medical counseling, as provided under this contract, typically focuses on life skills, stress management, relationship issues, grief, and adjustment challenges. It aims to provide support and coping strategies for everyday stressors and life events that can impact well-being. Medical behavioral health services, on the other hand, address diagnosed mental health conditions such as depression, anxiety disorders, PTSD, and substance abuse, often involving clinical diagnosis, therapy, and medication management. The distinction is crucial: non-medical counseling serves as a preventative and supportive resource, helping individuals build resilience and address issues before they escalate to a clinical level. It complements, rather than replaces, the need for medical mental health care, ensuring a broader spectrum of support is available to military families.

Industry Classification

NAICS: Health Care and Social AssistanceIndividual and Family ServicesOther Individual and Family Services

Product/Service Code: SOCIAL SERVICESSOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 1750 PRESIDENTS ST, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $1,770,309,265

Exercised Options: $1,283,812,530

Current Obligation: $1,013,331,269

Actual Outlays: $765,698,051

Subaward Activity

Number of Subawards: 64

Total Subaward Amount: $33,193,050

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2021-02-01

Current End Date: 2027-01-31

Potential End Date: 2027-01-31 00:00:00

Last Modified: 2026-03-30

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