ARPA-H IT Support Services Contract Awarded to Leidos for $74.5M, Running Through 2026
Contract Overview
Contract Amount: $74,536,434 ($74.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2023-09-29
End Date: 2026-09-28
Contract Duration: 1,095 days
Daily Burn Rate: $68.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: LABOR HOURS
Sector: IT
Official Description: ADVANCED RESEARCH PROJECTS AGENCY FOR HEATH (ARPA-H) INFORMATION TECHNOLOGY SUPPORT SERVICES
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $74.5 million to LEIDOS, INC. for work described as: ADVANCED RESEARCH PROJECTS AGENCY FOR HEATH (ARPA-H) INFORMATION TECHNOLOGY SUPPORT SERVICES Key points: 1. Contract value of $74.5M for IT support services. 2. Leidos, Inc. is the primary contractor. 3. Awarded by the Department of Health and Human Services (NIH). 4. Competition method was full and open. 5. Service type is 'Other Computer Related Services'.
Value Assessment
Rating: good
The contract value of $74.5M for 1095 days of service appears reasonable given the scope of IT support for a major research agency. Benchmarking against similar large-scale IT service contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers, as it aims to secure the best value through market forces.
Public Impact
Ensures critical IT infrastructure and support for advanced health research. Supports ARPA-H's mission to drive biomedical innovation. Potential for technology advancements through IT services. Contract duration of three years provides stability for services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for cost overruns if scope expands beyond initial estimates.
Positive Signals
- Full and open competition ensures market-driven pricing.
- Experienced contractor (Leidos) likely to provide reliable services.
- Supports a high-priority government research initiative.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government agencies to maintain and upgrade technological capabilities, supporting everything from administrative functions to complex research operations.
Small Business Impact
The data indicates that small businesses were not directly awarded this prime contract, as Leidos, Inc. is a large business. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
Oversight is likely managed by the National Institutes of Health (NIH) on behalf of ARPA-H. The contract's delivery order structure suggests phased oversight and performance monitoring throughout its duration.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Potential for scope creep impacting budget.
- Reliance on a single large prime contractor.
- Need for clear performance metrics and oversight.
- Cybersecurity risks inherent in IT support contracts.
Tags
other-computer-related-services, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $74.5 million to LEIDOS, INC.. ADVANCED RESEARCH PROJECTS AGENCY FOR HEATH (ARPA-H) INFORMATION TECHNOLOGY SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is LEIDOS, 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 $74.5 million.
What is the period of performance?
Start: 2023-09-29. End: 2026-09-28.
What specific IT services are included in this $74.5M contract, and how do they align with ARPA-H's research goals?
The contract covers 'Other Computer Related Services' for ARPA-H. While specific details are not provided, this typically includes IT infrastructure management, network support, cybersecurity, software maintenance, and potentially specialized research computing support. These services are crucial for enabling ARPA-H's mission to accelerate breakthroughs in health, ensuring researchers have reliable and advanced technological tools.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure value for money?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Effective oversight would require clearly defined metrics related to system uptime, response times for support requests, cybersecurity incident resolution, and project completion rates. Measuring performance against these KPIs is essential for ensuring the contractor delivers value and meets ARPA-H's operational needs effectively.
How does the pricing structure (labor hours) compare to industry benchmarks for similar IT support services in the federal sector?
The contract utilizes a 'Labor Hours' pricing model. Benchmarking this against industry standards requires detailed analysis of the labor categories, rates, and estimated hours. Without specific rate information, a direct comparison is difficult. However, full and open competition suggests the rates were deemed competitive at the time of award, but ongoing monitoring is needed to ensure they remain fair throughout the contract period.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 8
Pricing Type: LABOR HOURS (Z)
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: $100,040,292
Exercised Options: $74,536,434
Current Obligation: $74,536,434
Actual Outlays: $57,027,260
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F116AA
IDV Type: FSS
Timeline
Start Date: 2023-09-29
Current End Date: 2026-09-28
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2025-12-03
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