CDC's $12.7M surveillance system contract awarded to Leidos, Inc. shows fair value with moderate competition

Contract Overview

Contract Amount: $12,669,958 ($12.7M)

Contractor: Leidos, Inc.

Awarding Agency: General Services Administration

Start Date: 2004-12-20

End Date: 2008-07-15

Contract Duration: 1,303 days

Daily Burn Rate: $9.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CDC APPLICATION DEPLOYMENT AND INTEGRATION FOR SURVEILLANCE AND EMERGENCY PREPAREDNESS FOR STATE/LOCAL PUBLIC HEALTH

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $12.7 million to LEIDOS, INC. for work described as: CDC APPLICATION DEPLOYMENT AND INTEGRATION FOR SURVEILLANCE AND EMERGENCY PREPAREDNESS FOR STATE/LOCAL PUBLIC HEALTH Key points: 1. The contract's value appears reasonable given the scope of application deployment and integration for public health surveillance. 2. Competition was moderate, with one awardee suggesting potential for price negotiation improvements. 3. The contract duration and delivery order type indicate a phased approach to system implementation. 4. Performance context is crucial for assessing the long-term effectiveness of the surveillance system. 5. This contract falls within the broader IT and public health technology sector.

Value Assessment

Rating: fair

The contract's total value of approximately $12.7 million over its period of performance suggests a moderate investment for a public health surveillance system. Benchmarking against similar IT deployment contracts for government agencies indicates that this price point is within a typical range, though specific features and complexity would influence a precise comparison. The Time and Materials pricing model, while flexible, can sometimes lead to cost overruns if not closely managed, impacting overall value for money. Further analysis of the specific deliverables and their alignment with the stated objectives is needed for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a competitive delivery order, implying that multiple vendors were considered, but only one was selected for this specific order. The limited number of bidders for this particular order, as indicated by 'no': 1, suggests that while the initial contract vehicle may have been competed broadly, this specific task order might not have attracted extensive competition. This could potentially limit price discovery and negotiation leverage for the government.

Taxpayer Impact: A limited competitive environment for this delivery order means taxpayers may not have benefited from the lowest possible pricing that a more robust bidding process could have yielded.

Public Impact

State and local public health departments will benefit from enhanced surveillance and emergency preparedness capabilities. The contract supports the deployment and integration of critical IT infrastructure for public health. Geographic impact is nationwide, enabling better data collection and response across various states and localities. Workforce implications include the need for trained personnel to manage and utilize the new surveillance system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost escalation due to Time and Materials pricing model if not rigorously managed.
  • Limited competition for this specific delivery order may have reduced price negotiation effectiveness.
  • Dependence on a single contractor for deployment and integration could pose risks if performance falters.

Positive Signals

  • Award to a known entity like Leidos, Inc. suggests a level of confidence in their technical capabilities.
  • The contract aims to improve critical public health infrastructure, a positive societal outcome.
  • The phased approach (delivery order) allows for iterative development and feedback.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software deployment, integration, and IT services for government applications. The market for public health IT solutions is growing, driven by the need for better data management, interoperability, and rapid response capabilities. Comparable spending benchmarks in this area often involve significant investments in data analytics platforms, secure communication systems, and emergency management software. The size of this contract is moderate within the context of large-scale federal IT procurements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Leidos, Inc., is a large business, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the CDC or GSA. Accountability measures would be tied to the performance metrics outlined in the contract's statement of work and the delivery order. Transparency is generally facilitated through federal procurement databases like FPDS-NG, where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

  • CDC Public Health Surveillance Systems
  • Federal Health IT Modernization Programs
  • State and Local Government IT Support Contracts
  • Emergency Preparedness and Response Systems

Risk Flags

  • Potential for cost overruns due to T&M pricing
  • Limited competition for delivery order
  • Integration complexity of public health data systems

Tags

it, cdc, general-services-administration, competitive-delivery-order, large-contract, time-and-materials, public-health, surveillance-systems, application-deployment, data-integration, georgia

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $12.7 million to LEIDOS, INC.. CDC APPLICATION DEPLOYMENT AND INTEGRATION FOR SURVEILLANCE AND EMERGENCY PREPAREDNESS FOR STATE/LOCAL PUBLIC HEALTH

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 $12.7 million.

What is the period of performance?

Start: 2004-12-20. End: 2008-07-15.

What was the specific nature of the 'surveillance and emergency preparedness' capabilities being deployed or integrated?

The contract aimed to enhance the CDC's ability to collect, analyze, and disseminate public health data for both routine surveillance and rapid response during emergencies. This likely involved integrating disparate data sources, improving data quality, and deploying user-friendly interfaces for state and local health departments. Specific functionalities could include disease outbreak tracking, syndromic surveillance, and real-time situational awareness dashboards. The 'Application Deployment and Integration' aspect suggests a focus on making existing or new software systems operational and interconnected within the public health infrastructure.

How does the $12.7 million cost compare to similar public health IT deployment contracts?

The $12.7 million total contract value is considered moderate for a federal IT deployment and integration project of this nature. Similar contracts for enhancing national or state-level public health data systems can range from a few million dollars for smaller, targeted upgrades to tens or even hundreds of millions for comprehensive, nationwide system overhauls. Factors influencing cost include the complexity of data integration, the number of agencies involved, the level of customization required, and the duration of the project. Given the scope implied by 'surveillance and emergency preparedness,' this contract appears to represent a reasonable investment for enhancing critical public health infrastructure.

What were the key performance indicators (KPIs) used to measure the success of this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for such IT deployment and integration contracts would likely include metrics related to system uptime and availability, data accuracy and completeness, successful integration of specified data feeds, user adoption rates, response times for data queries, and the successful deployment of new features or modules within agreed-upon timelines. Adherence to security protocols and data privacy regulations would also be critical performance areas. The contracting officer's representative (COR) would monitor these KPIs throughout the contract's life.

What is Leidos, Inc.'s track record with similar federal health IT contracts?

Leidos, Inc. has a significant and extensive track record of performing large-scale IT services and solutions for various U.S. federal agencies, including those in the health sector. They have been involved in numerous contracts related to health IT modernization, data analytics, electronic health records (EHR) implementation, and public health surveillance systems for agencies like the Department of Health and Human Services (HHS), Centers for Disease Control and Prevention (CDC), and National Institutes of Health (NIH). Their experience suggests a strong capability to handle complex deployments and integrations, although performance can vary across individual contracts.

Were there any identified risks or challenges during the contract's performance period (2004-2008)?

The provided summary data does not explicitly detail risks or challenges encountered during the contract's performance. However, common risks associated with IT deployment and integration projects of this era and type include technical integration issues between legacy and new systems, data migration complexities, scope creep, cybersecurity vulnerabilities, user resistance to change, and potential delays due to evolving public health requirements. The Time and Materials (T&M) contract type also carries inherent risks of cost overruns if not managed diligently through robust oversight and defined ceilings.

How did the 'limited' competition level impact the government's ability to secure favorable pricing?

The 'limited' competition, indicated by only one awardee for this specific delivery order, generally suggests a reduced ability for the government to leverage a competitive bidding process to drive down prices. When fewer vendors participate, the primary incentive for aggressive pricing is diminished. While the initial contract vehicle might have been competed, this specific task order's limited competition means the government may not have received the full benefit of market forces. This could result in a higher per-unit cost or overall price than if multiple vendors had actively vied for the work, potentially leading to less value for taxpayer dollars.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 4TCB75057001

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc. (UEI: 611641312)

Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,669,958

Exercised Options: $12,669,958

Current Obligation: $12,669,958

Parent Contract

Parent Award PIID: GS09K99BHD0010

IDV Type: GWAC

Timeline

Start Date: 2004-12-20

Current End Date: 2008-07-15

Potential End Date: 2008-07-15 00:00:00

Last Modified: 2015-08-05

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