GSA Awards $12.6M Contract to Leidos for PHIN Software SDLC Support

Contract Overview

Contract Amount: $12,660,261 ($12.7M)

Contractor: Leidos, Inc.

Awarding Agency: General Services Administration

Start Date: 2008-07-15

End Date: 2012-05-30

Contract Duration: 1,415 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THIS REQUIREMENT WILL SUPPORT A FULL SOFTWARE DEVELOPMENT LIFECYCLE (SDLC) FOR PUBLIC HEALTH INFORMATION NETWORK (PHIN) SOFTWARE SYSTEMS AND COMPONENTS.

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30333, 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: THIS REQUIREMENT WILL SUPPORT A FULL SOFTWARE DEVELOPMENT LIFECYCLE (SDLC) FOR PUBLIC HEALTH INFORMATION NETWORK (PHIN) SOFTWARE SYSTEMS AND COMPONENTS. Key points: 1. Contract awarded to Leidos, Inc. for Public Health Information Network (PHIN) software development. 2. The contract spans over 4 years, from July 2008 to May 2012. 3. Awarded under full and open competition, indicating a competitive bidding process. 4. The contract type is Time and Materials, which can pose cost control challenges.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure may lead to cost overruns if not closely managed. Benchmarking against similar SDLC contracts is difficult without more detailed cost breakdowns.

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. However, the Time and Materials (T&M) pricing type can limit the government's ability to control final costs compared to fixed-price contracts.

Taxpayer Impact: Taxpayer funds are utilized for software development. The T&M structure necessitates vigilant oversight to ensure cost-effectiveness and prevent unnecessary expenditures.

Public Impact

Supports critical public health information systems, potentially impacting disease surveillance and response. The duration of the contract (over 4 years) suggests a long-term need for these software services. Investment in software development aims to improve the functionality and reliability of PHIN systems.

Waste & Efficiency Indicators

Waste Risk Score: 89 / 10

Warning Flags

  • Time and Materials pricing can lead to cost uncertainty.
  • Long contract duration requires sustained oversight.
  • Potential for scope creep in SDLC projects.

Positive Signals

  • Full and open competition ensures market access.
  • Supports essential public health infrastructure.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software development for public health systems. Spending benchmarks for similar SDLC contracts vary widely based on complexity and duration.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. It appears to be a large contract awarded to a major prime contractor.

Oversight & Accountability

The General Services Administration (GSA) awarded this contract through its Federal Acquisition Service. Oversight would involve monitoring contract performance, expenditures, and adherence to the T&M pricing structure.

Related Government Programs

  • General Services Administration Contracting
  • Federal Acquisition Service Programs

Risk Flags

  • Potential for cost overruns due to Time and Materials pricing.
  • Risk of scope creep in a long-term SDLC project.
  • Dependence on a single contractor (Leidos, Inc.) for critical public health software.
  • Lack of specific small business participation noted.

Tags

general-services-administration, ga, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $12.7 million to LEIDOS, INC.. THIS REQUIREMENT WILL SUPPORT A FULL SOFTWARE DEVELOPMENT LIFECYCLE (SDLC) FOR PUBLIC HEALTH INFORMATION NETWORK (PHIN) SOFTWARE SYSTEMS AND COMPONENTS.

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: 2008-07-15. End: 2012-05-30.

What was the rationale for choosing a Time and Materials contract type for a full SDLC, and what controls were in place to manage costs?

The rationale for a Time and Materials (T&M) contract for a full Software Development Life Cycle (SDLC) often stems from the inherent uncertainties in defining all project requirements upfront. T&M allows flexibility as requirements evolve. However, to manage costs, agencies typically implement strict labor hour tracking, ceiling limitations, and require detailed justification for all hours billed. Regular reviews and milestone-based funding releases can also serve as cost controls.

How did the full and open competition ensure the best value was achieved, considering the T&M pricing structure?

Full and open competition ensures that multiple qualified vendors can bid, fostering a competitive environment that theoretically drives down prices and improves quality. Even with a T&M structure, competition allows the government to select the offeror with the most advantageous combination of technical approach, past performance, and proposed labor rates. The agency's evaluation criteria would focus on assessing the value proposition beyond just the lowest initial bid, considering the projected total cost and the likelihood of successful project completion.

What is the expected long-term impact on public health information systems and taxpayer investment given the contract's scope and duration?

The long-term impact depends on the successful delivery of robust and functional PHIN software. If the SDLC results in improved data collection, analysis, and sharing capabilities, it could significantly enhance public health surveillance and response efforts. Taxpayer investment is justified if the systems become reliable, cost-effective tools that contribute to better health outcomes. However, the T&M structure necessitates ongoing vigilance to ensure the investment remains within reasonable bounds and delivers tangible value.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 4TCB75057001

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $12,660,261

Exercised Options: $12,660,261

Current Obligation: $12,660,261

Parent Contract

Parent Award PIID: GS09K99BHD0010

IDV Type: GWAC

Timeline

Start Date: 2008-07-15

Current End Date: 2012-05-30

Potential End Date: 2012-05-30 00:00:00

Last Modified: 2015-08-06

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