CDC's National Immunization Program spent $15.9M on programming services over 5 years with Leidos, Inc
Contract Overview
Contract Amount: $15,898,832 ($15.9M)
Contractor: Leidos, Inc.
Awarding Agency: General Services Administration
Start Date: 2004-09-15
End Date: 2009-09-29
Contract Duration: 1,840 days
Daily Burn Rate: $8.6K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: PROGRAMMING SERVICES FOR CENTERS OF DISEASE CONTROL AND PREVENTION, NATIONAL IMMUNIZATION PROGRAM
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30333, UNITED STATES OF AMERICA
State: Georgia Government Spending
Plain-Language Summary
General Services Administration obligated $15.9 million to LEIDOS, INC. for work described as: PROGRAMMING SERVICES FOR CENTERS OF DISEASE CONTROL AND PREVENTION, NATIONAL IMMUNIZATION PROGRAM Key points: 1. The contract utilized a Time and Materials (T&M) pricing structure, which can pose cost control challenges. 2. Competition was strong with 3 bidders, suggesting a potentially competitive price discovery process. 3. The contract duration of 1840 days (approx. 5 years) indicates a long-term need for these services. 4. The award was a competitive delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541513 points to computer facilities management services, a critical IT support function. 6. The contract was awarded by the General Services Administration (GSA), a common contracting vehicle for federal agencies.
Value Assessment
Rating: fair
The total contract value of $15.9 million over approximately five years averages to about $3.18 million per year. Without specific benchmarks for programming services within the National Immunization Program or comparable GSA contracts, a precise value-for-money assessment is difficult. However, the Time and Materials pricing model, while flexible, can lead to cost overruns if not managed diligently. The competitive nature of the award (3 bidders) suggests that pricing was likely scrutinized, but the T&M structure itself warrants careful monitoring.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a competitive delivery order, indicating that it was competed under a broader IDIQ contract. With three bidders participating, the level of competition appears healthy. This suggests that multiple vendors were interested and capable of providing the required programming services, which generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: A competitive award with multiple bidders is beneficial for taxpayers as it drives down prices through market forces and encourages efficiency among contractors vying for the work.
Public Impact
The primary beneficiary is the CDC's National Immunization Program, which received essential programming services to support its operations. These services likely contributed to the maintenance and enhancement of IT systems crucial for managing immunization data and initiatives. The geographic impact is national, as the National Immunization Program serves the entire United States. Workforce implications include the employment of IT professionals and programmers by the contractor, Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost escalation if not closely monitored and managed.
- The specific nature of 'programming services' is broad and could encompass a wide range of activities, making precise performance evaluation challenging without detailed task orders.
- Long contract duration (approx. 5 years) increases the risk of technology obsolescence or shifts in program requirements not being adequately addressed.
Positive Signals
- Awarded through a competitive process with multiple bidders, indicating a degree of market validation.
- Contract awarded by GSA, leveraging established procurement vehicles which can streamline acquisition and potentially offer better terms.
- The contract supports a critical public health function (National Immunization Program), suggesting a high level of importance and potential for positive societal impact.
Sector Analysis
The contract falls within the IT services sector, specifically focusing on computer facilities management and programming. The federal IT services market is vast, with agencies consistently investing in software development, system maintenance, and IT infrastructure. This contract represents a small fraction of overall federal IT spending, but it is crucial for the operational continuity of a vital public health program. Benchmarking requires comparison to similar IT service contracts awarded by GSA or other health-focused agencies.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Leidos, Inc. is a large corporation. There is no direct information provided on subcontracting plans or their impact on the small business ecosystem. Without specific subcontracting goals or reporting, it's difficult to assess the extent to which small businesses may have benefited from this contract.
Oversight & Accountability
As a delivery order issued under a GSA Federal Supply Schedule contract, oversight is typically managed by the contracting officer at GSA and the program office at CDC. The Time and Materials pricing structure necessitates robust monitoring of labor hours and material costs to ensure compliance and prevent overcharging. Transparency would be enhanced through detailed reporting on task order performance and expenditures, though specific IG involvement is not indicated in the provided data.
Related Government Programs
- CDC IT Modernization Efforts
- Federal Health IT Services
- GSA IT Schedule Contracts
- National Public Health Programs
- Immunization Information Systems
Risk Flags
- Time and Materials Pricing
- Long Contract Duration
- Potential for Scope Creep
Tags
it-services, programming-services, cdc, national-immunization-program, general-services-administration, gsa, leidos-inc, competitive-delivery-order, time-and-materials, georgia, health-it, public-health
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $15.9 million to LEIDOS, INC.. PROGRAMMING SERVICES FOR CENTERS OF DISEASE CONTROL AND PREVENTION, NATIONAL IMMUNIZATION PROGRAM
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 $15.9 million.
What is the period of performance?
Start: 2004-09-15. End: 2009-09-29.
What was the specific nature of the programming services provided under this contract?
The provided data indicates the NAICS code is 541513 (Computer Facilities Management Services), suggesting the programming services were likely related to the management, maintenance, and potentially development of IT infrastructure and systems supporting the CDC's National Immunization Program. This could include tasks such as software updates, system administration, database management, network support, and potentially custom scripting or application development to enhance program operations. Without access to the specific contract line items or task orders, the precise scope remains generalized, but it is clearly tied to the IT backbone of the immunization program.
How does the average annual cost of $3.18 million compare to similar IT programming services contracts for public health programs?
A direct comparison of the average annual cost of $3.18 million for these programming services to similar contracts is challenging without access to a comprehensive database of federal IT procurements specifically for public health programs. However, federal IT spending varies widely based on complexity, scope, and duration. Given that this contract supported a critical national program (CDC's National Immunization Program) over five years, the annual expenditure appears within a plausible range for specialized IT support. The competitive nature of the award (3 bidders) suggests that the pricing was subject to market forces, which typically helps align costs with reasonable market rates, although the T&M structure requires diligent oversight.
What are the primary risks associated with the Time and Materials (T&M) contract type used for this procurement?
The primary risk with a Time and Materials (T&M) contract is the potential for cost escalation, as the government pays for the actual labor hours and material costs incurred by the contractor. Unlike fixed-price contracts, there is less incentive for the contractor to control costs or improve efficiency beyond what is necessary to complete the task. This necessitates rigorous oversight from the government to monitor hours, ensure fair labor rates, and validate material costs. Without strong government project management and surveillance, T&M contracts can become significantly more expensive than initially anticipated, potentially exceeding budget allocations.
What was the track record of Leidos, Inc. in delivering IT services to the federal government prior to or during this contract?
Leidos, Inc. is a major government contractor with a substantial history of providing IT and other technical services across numerous federal agencies, including the Department of Defense, Intelligence Community, and civilian agencies like HHS (which includes the CDC). Prior to and during this 2004-2009 contract, Leidos (and its predecessor companies) would have had a well-established track record. Their extensive experience suggests a high likelihood of possessing the technical capabilities and project management maturity required for complex IT services. However, the specific performance metrics for this particular CDC contract would require deeper investigation into past performance reviews or contract close-out documentation.
How did the competitive landscape (3 bidders) influence the final pricing and terms of this contract?
A competitive landscape with three bidders generally exerts downward pressure on pricing and encourages favorable terms for the government. When multiple companies vie for a contract, they are motivated to offer competitive rates and demonstrate superior value to win the award. The presence of three bidders suggests that the market had sufficient capacity and interest to support this requirement. This level of competition likely resulted in a more efficient price discovery process, where the final negotiated price reflected a balance of the contractor's costs, desired profit margin, and the competitive pressures from other interested parties, ultimately benefiting the taxpayer.
What are the potential implications of this contract's duration (approx. 5 years) on technological relevance and program adaptability?
A contract duration of approximately five years for IT programming services carries inherent risks related to technological relevance and program adaptability. Technology evolves rapidly, and systems developed or maintained under this contract could become outdated or less efficient over time. Furthermore, the long timeframe might not adequately accommodate shifts in the CDC's strategic priorities, evolving public health needs, or new regulatory requirements. To mitigate these risks, effective contract management, including provisions for technical refresh, scope adjustments, and potentially phased re-competition, would be crucial to ensure the services remained aligned with current needs and technological advancements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10302 EATON PLACE, SUITE 150, FAIRFAX, VA, 22030
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,898,832
Exercised Options: $15,898,832
Current Obligation: $15,898,832
Parent Contract
Parent Award PIID: GS07T00BGD0028
IDV Type: GWAC
Timeline
Start Date: 2004-09-15
Current End Date: 2009-09-29
Potential End Date: 2009-09-29 00:00:00
Last Modified: 2015-08-06
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