HHS awards $67M to Leidos for NCI data commons, extending contract to 2027

Contract Overview

Contract Amount: $67,013,032 ($67.0M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2018-09-11

End Date: 2027-08-31

Contract Duration: 3,276 days

Daily Burn Rate: $20.5K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Healthcare

Official Description: HHSN261201500003I; HHSN26100071; 400.021.0071.0001; NCI CBIIT; APPROPRIATED; EXPAND DATA COMMONS; 09/14/18-09/13/23

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $67.0 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: HHSN261201500003I; HHSN26100071; 400.021.0071.0001; NCI CBIIT; APPROPRIATED; EXPAND DATA COMMONS; 09/14/18-09/13/23 Key points: 1. Contract awarded via a sole-source mechanism, raising questions about potential cost efficiencies. 2. Significant contract duration of over 8 years suggests a long-term need for these services. 3. The cost-plus-fixed-fee structure may incentivize cost overruns if not closely monitored. 4. Leidos Biomedical Research Inc. is the sole awardee, indicating a lack of broader market engagement. 5. The contract supports the National Cancer Institute's data commons initiative, crucial for research. 6. Geographic concentration in Maryland for contract performance. 7. No small business set-aside was applied to this contract.

Value Assessment

Rating: fair

The contract's value of $67 million over its extended period appears substantial for facilities support services. Benchmarking against similar large-scale data infrastructure contracts within the federal government is challenging without more specific service details. The cost-plus-fixed-fee (CPFF) pricing structure, while allowing for flexibility, can sometimes lead to higher overall costs compared to fixed-price contracts if not managed rigorously. The extended period suggests a sustained need, but the lack of competitive bidding makes a direct value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when it's deemed not to be in the government's best interest to compete. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive pressure. The government relies on the contractor's good faith in pricing and the agency's oversight to ensure fair value.

Public Impact

Researchers and scientists within the National Cancer Institute (NCI) benefit from enhanced data management and access capabilities. The contract supports the expansion and maintenance of the NCI's data commons, a critical resource for cancer research. Geographic impact is primarily concentrated in Maryland, where the contractor's operations are based. Workforce implications include employment opportunities for technical and support staff at Leidos Biomedical Research Inc.

Waste & Efficiency Indicators

Waste Risk Score: 40 / 10

Warning Flags

Sole-source award limits price competition and potential for cost savings.
Cost-plus-fixed-fee structure requires robust oversight to prevent cost overruns.
Long contract duration may reduce flexibility to adapt to evolving technological needs without renegotiation.

Positive Signals

Supports a critical NCI initiative for cancer research data.
Leidos Biomedical Research Inc. has a long-standing relationship with the government, suggesting institutional knowledge.
Contract provides continuity for essential data infrastructure services.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically supporting IT infrastructure and data management for a research-intensive agency. The federal IT services market is vast and highly competitive, with significant spending allocated to maintaining and expanding data capabilities. This contract's focus on a specialized data commons for cancer research positions it within a niche but critical area of health IT spending. Comparable spending benchmarks would typically involve large-scale IT infrastructure and data management contracts awarded to major federal IT service providers.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The sole-source nature of the award further limits opportunities for small businesses to participate directly. The impact on the small business ecosystem is likely minimal, as the primary awardee is a large entity. Future opportunities for small businesses might arise through subcontracting if Leidos chooses to engage them, but this is not guaranteed.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and the National Institutes of Health (NIH). As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure costs remain reasonable and deliverables are met. Transparency is dependent on agency reporting practices and any potential Inspector General reviews. The specific mechanisms for accountability, such as performance metrics and review cycles, would be detailed in the contract itself.

Related Government Programs

National Cancer Institute (NCI) IT Modernization Efforts
HHS Data Management and Analytics Programs
Federal Health IT Infrastructure Contracts
Large-Scale Research Data Repository Services

Risk Flags

Sole-source award may limit price competition.
Cost-plus-fixed-fee structure requires diligent oversight to manage costs.
Long contract duration could impact future market competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $67.0 million to LEIDOS BIOMEDICAL RESEARCH INC. HHSN261201500003I; HHSN26100071; 400.021.0071.0001; NCI CBIIT; APPROPRIATED; EXPAND DATA COMMONS; 09/14/18-09/13/23

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 $67.0 million.

What is the period of performance?

Start: 2018-09-11. End: 2027-08-31.

What is the historical spending trend for this contract or similar services provided by Leidos Biomedical Research Inc. to the NCI?

The provided data indicates a current award value of $67,013,032 with an end date of August 31, 2027, and a start date of September 11, 2018. This suggests a significant, long-term engagement. To understand historical spending trends, one would need to examine prior contract awards to Leidos Biomedical Research Inc. for similar services under the same or related contract vehicles (e.g., HHSN261201500003I, HHSN26100071). Analyzing the cumulative spending over the entire period of performance, including any modifications or task orders, would reveal the total investment in these data commons services. Without access to historical contract databases or detailed award histories, a precise trend analysis is not possible based solely on the provided snippet. However, the extended duration and substantial value imply consistent and significant funding allocation over several years.

How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for similar federal IT support services?

The Cost Plus Fixed Fee (CPFF) pricing structure is common in federal contracting, particularly for research, development, and complex services where the scope may evolve or is not fully defined at the outset. For IT support services, CPFF allows the contractor to recover all allowable costs plus a fixed fee representing profit. While offering flexibility, it carries a higher risk of cost overruns compared to fixed-price contracts. Industry standards suggest that CPFF is often used when the government needs specialized expertise or when the nature of the work makes precise cost estimation difficult. However, agencies are encouraged to use firm-fixed-price contracts when possible to incentivize contractor efficiency. The appropriateness of CPFF here depends on the specific nature of expanding and maintaining a data commons, which might involve unforeseen technical challenges or evolving research requirements. Robust oversight is critical to ensure the fixed fee remains reasonable and that costs are controlled.

What are the specific performance metrics and Key Performance Indicators (KPIs) used to evaluate Leidos Biomedical Research Inc.'s success in managing the NCI Data Commons?

The provided data snippet does not detail the specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, for a contract supporting a data commons, KPIs would focus on aspects such as data availability and uptime, data integrity and security, response times for data access requests, system performance and scalability, and user satisfaction. The contract documents, including the Performance Work Statement (PWS) or Statement of Work (SOW), would outline these requirements and the methods for measuring performance. The agency's Contracting Officer's Representative (COR) is responsible for monitoring performance against these metrics. Without access to the full contract, a precise evaluation of success criteria is not possible.

Given the sole-source nature, what steps has HHS taken to ensure fair and reasonable pricing for this contract?

When a sole-source contract is awarded, the government is obligated to ensure fair and reasonable pricing. This typically involves conducting a thorough price analysis. For a Cost Plus Fixed Fee (CPFF) contract, this would involve reviewing the contractor's proposed costs (labor, materials, overhead) and the fixed fee. HHS would likely request detailed cost proposals from Leidos Biomedical Research Inc., potentially including historical cost data, should-cost analyses, and comparisons to similar commercial or government services. They might also consult independent cost estimates or market research data. The Defense Contract Audit Agency (DCAA) or the agency's own audit/contract pricing teams may be involved in auditing the cost proposal. The Contracting Officer must document their determination that the price is fair and reasonable based on the available information.

What is the potential impact of extending this contract to 2027 on future competition for similar data commons services?

Extending this contract to August 2027, especially given its sole-source nature, could potentially limit future competition. A long-term sole-source award may reduce the incentive for other companies to develop comparable capabilities or for the government to explore alternative solutions. It can create a 'lock-in' effect where the incumbent contractor becomes deeply integrated into the agency's systems and processes, making it difficult and costly for a new contractor to take over. However, if the contract includes provisions for technology refresh or performance improvements, it might still allow for some level of innovation. The government could also plan for a more robust competition as the end date approaches, potentially breaking down the services into smaller, more competitive lots or requiring specific transition plans from the incumbent.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N01CO5240180

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 1050 BOYLES ST, FREDERICK, MD, 21702

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

Financial Breakdown

Contract Ceiling: $67,013,032

Exercised Options: $67,013,032

Current Obligation: $67,013,032

Actual Outlays: $35,031,258

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSN261201500003I

IDV Type: IDC

Timeline