HUD Phase II Contact Center Awarded to Leidos for $136.5M, Spanning 6 Years

Contract Overview

Contract Amount: $136,490,115 ($136.5M)

Contractor: Leidos, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-10-09

End Date: 2026-04-08

Contract Duration: 2,007 days

Daily Burn Rate: $68.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HUD PHASE II CONTACT CENTER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $136.5 million to LEIDOS, INC. for work described as: HUD PHASE II CONTACT CENTER Key points: 1. Significant contract value of $136.5 million for contact center services. 2. Leidos, Inc. is the sole awardee, raising questions about competition. 3. Potential risk associated with a long contract duration (6 years). 4. Services fall under 'Other Computer Related Services' (NAICS 541519).

Value Assessment

Rating: fair

The contract value of $136.5 million over six years suggests a substantial investment. Benchmarking against similar large-scale contact center contracts would be necessary to assess if this pricing is competitive, especially given the firm-fixed-price structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a broad solicitation. However, the award itself is a delivery order, and the specific pricing discovery for this order needs further examination to ensure optimal price discovery.

Taxpayer Impact: Taxpayer funds are being utilized for this significant contract. The firm-fixed-price structure aims to control costs, but the overall value necessitates scrutiny to ensure efficient use of public money.

Public Impact

Impacts citizens needing HUD services through the contact center. Ensures continuity of essential government support functions. Potential for job creation or shifts within the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific small business participation noted.
  • Long contract duration could lead to vendor lock-in.
  • Limited transparency on specific performance metrics and KPIs.

Positive Signals

  • Awarded under full and open competition.
  • Firm-fixed-price contract type provides cost certainty.
  • Long-term nature allows for stable service provision.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. The benchmark for similar large-scale contact center operations can vary widely based on scope, technology, and service level agreements, but $136.5M over six years represents a significant investment.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed or if the nature of the requirement precluded small business involvement.

Oversight & Accountability

The General Services Administration (GSA) awarded this contract through its Federal Acquisition Service. Oversight would involve monitoring Leidos' performance against contract requirements and ensuring adherence to federal regulations and policies.

Related Government Programs

  • Other Computer Related Services
  • General Services Administration Contracting
  • Federal Acquisition Service Programs

Risk Flags

  • Potential for cost overruns if scope creeps.
  • Risk of service degradation if performance is not actively managed.
  • Limited visibility into specific performance metrics.
  • Lack of explicit small business subcontracting goals.

Tags

other-computer-related-services, general-services-administration, dc, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $136.5 million to LEIDOS, INC.. HUD PHASE II CONTACT CENTER

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 $136.5 million.

What is the period of performance?

Start: 2020-10-09. End: 2026-04-08.

What specific performance metrics and service level agreements (SLAs) are in place to ensure the quality and efficiency of the contact center services provided by Leidos?

The provided data does not detail specific performance metrics or SLAs. A thorough review of the contract's statement of work and associated performance standards is crucial. These metrics typically include call answer rates, average handling time, customer satisfaction scores, and resolution rates to ensure effective service delivery and accountability.

Given the $136.5 million value and 6-year duration, what is the estimated cost savings or value proposition compared to alternative service delivery models or previous contracts?

Without comparative data on alternative models or previous contract costs, it's difficult to quantify savings. The firm-fixed-price structure offers budget predictability. However, a detailed cost-benefit analysis, including potential efficiencies gained through Leidos' proposed solutions and economies of scale, would be needed to validate the value proposition.

How will the government ensure continued innovation and adaptation to evolving citizen needs and technological advancements throughout the 6-year contract term?

Mechanisms for ensuring innovation typically include contract clauses that allow for modifications, periodic reviews of technology trends, and incentives for proposing improvements. The government should actively engage with Leidos to explore new technologies and service enhancements, potentially through contract modifications or future re-competitions, to maintain relevance and effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1750 PRESIDENTS ST FL 5, 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: $173,013,009

Exercised Options: $144,415,246

Current Obligation: $136,490,115

Actual Outlays: $-40,834

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F116AA

IDV Type: FSS

Timeline

Start Date: 2020-10-09

Current End Date: 2026-04-08

Potential End Date: 2026-04-08 00:00:00

Last Modified: 2026-03-12

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