HUD awards $38.4M sole-source contract for end-user support services to Leidos, Inc
Contract Overview
Contract Amount: $38,448,835 ($38.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Housing and Urban Development
Start Date: 2024-02-28
End Date: 2025-02-27
Contract Duration: 365 days
Daily Burn Rate: $105.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: END USER SUPPORT SERVICES: SOLE SOURCE CONTRACT
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $38.4 million to LEIDOS, INC. for work described as: END USER SUPPORT SERVICES: SOLE SOURCE CONTRACT Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities. 2. Leidos, Inc. is the sole contractor, raising questions about market competition. 3. The contract's fixed-price nature aims to control costs, but value needs benchmarking. 4. Performance period is one year, suggesting a need for ongoing support. 5. The contract falls under Computer Systems Design Services, a common IT support category. 6. No small business set-aside was applied, potentially impacting small business participation.
Value Assessment
Rating: fair
The contract value of $38.4 million for one year of end-user support services appears substantial. Without specific performance metrics or a detailed breakdown of services, it is difficult to benchmark the value against similar contracts. The fixed-price structure suggests an attempt to manage costs, but the absence of competition means there is less pressure to offer the lowest possible price. Further analysis would require understanding the scope of services and comparing Leidos's pricing to industry standards for comparable IT support contracts.
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 only one vendor possesses the necessary qualifications, or in situations where a competitive process is not feasible or in the government's best interest. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for taxpayers compared to a fully competed contract.
Taxpayer Impact: Sole-source awards limit the government's ability to leverage competition to secure the best possible pricing and value for taxpayer dollars. This can result in less cost-effective outcomes.
Public Impact
The primary beneficiary is the Department of Housing and Urban Development (HUD), which will receive essential end-user support services. Services delivered likely include help desk support, hardware/software troubleshooting, and IT assistance for HUD employees. The geographic impact is primarily within HUD's operational locations, likely concentrated in Virginia where the contractor is based. Workforce implications include the employment of IT support personnel by Leidos, Inc. to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases costs.
- Lack of small business set-aside may reduce opportunities for smaller IT firms.
- Fixed-price contract, while controlling costs, may not reflect the most competitive market rates due to sole-source nature.
Positive Signals
- Leidos, Inc. is a large, established government contractor with significant IT support experience.
- The fixed-price contract type provides cost certainty for the government.
- The contract duration of one year allows for flexibility and reassessment of needs.
Sector Analysis
The IT services sector, particularly computer systems design and related services, is a significant area of federal spending. This contract falls within the broader IT support and managed services market, which is characterized by a mix of large prime contractors and specialized small businesses. Federal agencies rely heavily on these services to maintain their IT infrastructure and support end-users. Benchmarking this contract's value would involve comparing its per-user cost or scope of services to similar IT support contracts awarded by other federal agencies or within the commercial sector.
Small Business Impact
This contract was not set aside for small businesses, and the data indicates no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract are limited. The absence of a small business set-aside or subcontracting plan could mean that a larger portion of the contract value flows to the prime contractor, Leidos, Inc., rather than being distributed within the broader small business IT ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by contracting officers and program managers within the Department of Housing and Urban Development. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated through contract databases like FPDS, which provide basic award information. The Inspector General for HUD would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- End User Support Services
- IT Help Desk Services
- Computer Systems Design Services
- Managed IT Services
- Federal IT Support Contracts
Risk Flags
- Sole-source award may indicate a lack of market research or justification.
- Potential for higher costs due to lack of competition.
- Limited transparency on specific service details and performance metrics.
Tags
it-services, end-user-support, hud, leidos-inc, sole-source, definitive-contract, firm-fixed-price, computer-systems-design, virginia, civilian-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $38.4 million to LEIDOS, INC.. END USER SUPPORT SERVICES: SOLE SOURCE CONTRACT
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).
What is the total obligated amount?
The obligated amount is $38.4 million.
What is the period of performance?
Start: 2024-02-28. End: 2025-02-27.
What is the specific scope of 'end-user support services' covered under this contract?
The provided data does not detail the specific scope of 'end-user support services.' Typically, such services encompass a range of IT assistance for end-users, including help desk support (troubleshooting software and hardware issues), user account management, device setup and maintenance, and potentially basic network support. For this contract with HUD, the exact deliverables would be outlined in the contract's Statement of Work (SOW). Without the SOW, it's impossible to ascertain the full breadth of services, which is crucial for evaluating value and performance. The $38.4 million price tag suggests a comprehensive support package for a significant number of users across HUD.
How does the $38.4 million contract value compare to similar end-user support contracts?
Benchmarking the $38.4 million contract value for one year of end-user support services requires more granular data on the number of users supported, the service level agreements (SLAs), and the specific technologies involved. However, as a general comparison, large federal agencies often spend tens of millions annually on comprehensive IT support. For instance, contracts for similar services can range from $10 million to over $100 million depending on agency size and complexity. Given this is a sole-source award to Leidos, Inc., a large IT services provider, the price might be higher than a competitively bid contract. A detailed analysis would involve comparing per-user costs and service scope against industry benchmarks and other government contracts.
What are the potential risks associated with a sole-source award for critical IT support?
The primary risk of a sole-source award for critical IT support is the lack of competition, which can lead to inflated prices and reduced incentive for the contractor to innovate or provide exceptional service. Without competitive pressure, the government may not achieve the best value for its investment. Additionally, sole-source contracts can create vendor lock-in, making it difficult and costly to switch providers in the future. There's also a risk that the chosen vendor may not be the most capable or cost-effective option available in the market. Transparency and justification for the sole-source decision are critical to mitigate these risks.
What is Leidos, Inc.'s track record with federal IT support contracts?
Leidos, Inc. is a major government contractor with extensive experience in providing IT services across various federal agencies. They have a long history of managing large-scale IT support, systems integration, and cybersecurity contracts. Their track record includes significant work with defense, intelligence, and civilian agencies. While specific performance details for every contract are not publicly available, Leidos is generally considered a capable provider of complex IT solutions. However, the success and value of any specific contract depend heavily on its defined scope, management, and oversight.
What is the historical spending pattern for end-user support services at HUD?
Analyzing historical spending patterns for end-user support services at HUD would require access to multi-year contract data. Without that specific data, it's difficult to provide a precise historical context. However, federal agencies like HUD consistently require robust end-user support to maintain operational efficiency. Spending in this area typically fluctuates based on technology upgrades, workforce changes, and contract vehicles. If this $38.4 million contract represents a significant increase or decrease compared to previous years, it would warrant further investigation into the underlying reasons, such as changes in service scope, user base, or market pricing.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST FL 10, 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: $55,359,747
Exercised Options: $38,448,835
Current Obligation: $38,448,835
Actual Outlays: $37,977,850
Subaward Activity
Number of Subawards: 34
Total Subaward Amount: $18,134,296
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-02-28
Current End Date: 2025-02-27
Potential End Date: 2025-02-27 00:00:00
Last Modified: 2026-01-27
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