Leidos awarded $60.6M contract for computer systems design services by CDC
Contract Overview
Contract Amount: $60,576,637 ($60.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2014-05-21
End Date: 2019-07-31
Contract Duration: 1,897 days
Daily Burn Rate: $31.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::OT::IGF
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30329
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $60.6 million to LEIDOS, INC. for work described as: IGF::OT::IGF Key points: 1. Contract awarded to a single large business, indicating potential for limited competition. 2. Services are for computer systems design, a critical area for public health data management. 3. Contract duration of nearly 5 years suggests a long-term need for these services. 4. Awarded as a delivery order under a larger contract vehicle, potentially impacting price transparency. 5. No small business set-aside or subcontracting reported, suggesting limited direct benefit to small businesses. 6. The contract type is Time and Materials, which can pose cost control risks if not managed carefully.
Value Assessment
Rating: fair
The contract value of $60.6 million over approximately five years for computer systems design services appears to be within a reasonable range for a large federal contract of this nature. However, without specific benchmarks for the exact services rendered and the complexity of the systems involved, a definitive value-for-money assessment is challenging. The Time and Materials pricing structure necessitates close monitoring to ensure costs do not escalate beyond initial expectations. Comparing this to similar large-scale IT service contracts awarded by agencies like HHS or other public health organizations would provide a more robust benchmark.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. However, the data indicates it was a delivery order, which might have been placed against an existing indefinite-delivery indefinite-quantity (IDIQ) contract. The number of bidders for the specific delivery order is not provided, but the fact that it was competed broadly is a positive sign for price discovery. The ultimate success of the competition in driving down costs depends on the specific terms of the base IDIQ and the number of responsive bids received for this particular order.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining fair market value.
Public Impact
The Centers for Disease Control and Prevention (CDC) benefits from enhanced computer systems design services, crucial for managing public health data and operations. Public health initiatives and disease surveillance efforts are supported through the improved functionality and design of IT systems. The contract's impact is primarily national, supporting the CDC's mission across the United States. While not a direct job creation contract, it supports the IT workforce employed by Leidos and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely monitored and managed.
- Lack of specific details on the number of bidders for this delivery order makes it difficult to fully assess the competitive pressure on pricing.
- The contract is not set aside for small businesses, potentially limiting opportunities for smaller firms in this sector.
Positive Signals
- Awarded through full and open competition, indicating a broad opportunity for qualified vendors.
- The contract supports critical IT infrastructure for a key public health agency (CDC).
- The duration of the contract suggests a stable and ongoing need for these services, providing continuity.
Sector Analysis
The IT services sector, particularly computer systems design, is a significant area of federal spending. Agencies rely heavily on these services for everything from maintaining legacy systems to developing cutting-edge digital solutions. The federal government is a major client for IT service providers, with spending often concentrated in areas like defense, health, and civilian agency operations. Benchmarks for similar contracts would typically look at the hourly rates for various labor categories and the overall project management fees charged by large system integrators.
Small Business Impact
This contract was not awarded as a small business set-aside, and there is no indication of subcontracting plans for small businesses. This means that the primary award went to a large business, Leidos, Inc. While large prime contractors may engage small businesses as subcontractors on their own initiative, the absence of a specific set-aside or subcontracting goal means there's no mandated pathway for small business participation in this particular contract. This could limit the direct economic benefit to the small business ecosystem for this specific award.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Health and Human Services and the Centers for Disease Control and Prevention's contracting and program management offices. The Inspector General's office for HHS would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is facilitated through public contract databases like FPDS, which provide details on awards. However, the specific performance metrics and day-to-day oversight activities are internal to the agency and contractor.
Related Government Programs
- HHS IT Modernization Contracts
- CDC IT Support Services
- Federal Civilian Agency IT Services
- Computer Systems Design Services Contracts
- Large Business IT Prime Contracts
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Limited visibility into the number of bidders for this specific delivery order.
- No explicit small business subcontracting requirements.
Tags
it-services, computer-systems-design, hhs, cdc, delivery-order, time-and-materials, full-and-open-competition, large-business, georgia, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $60.6 million to LEIDOS, INC.. IGF::OT::IGF
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 (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $60.6 million.
What is the period of performance?
Start: 2014-05-21. End: 2019-07-31.
What is the track record of Leidos, Inc. in performing similar computer systems design services for the federal government?
Leidos, Inc. is a major government contractor with a substantial history of providing IT services, including computer systems design, to various federal agencies. They have held numerous large-scale contracts across defense, intelligence, and health sectors. Their performance on past contracts, particularly those involving complex system integration, data management, and cybersecurity, would be a key indicator of their capability. Agencies typically evaluate past performance through contractor performance assessment reporting (CPARs). While specific CPARs for this exact contract are not detailed here, Leidos's overall profile suggests significant experience in this domain. However, the quality and relevance of past performance can vary, and a detailed review of their specific project outcomes and client feedback would be necessary for a comprehensive assessment.
How does the awarded amount of $60.6 million compare to similar computer systems design contracts awarded by the CDC or HHS?
The $60.6 million award over approximately five years for computer systems design services by the CDC falls within the typical range for large federal IT contracts. However, a precise comparison requires detailed knowledge of the specific services, labor categories, and complexity involved. Contracts for system design can vary widely in cost depending on factors such as the scope of the system, the number of users, integration requirements with existing infrastructure, and the level of customization needed. For instance, a contract focused on designing a new public health data analytics platform might be more expensive than one focused on optimizing existing network infrastructure. Benchmarking against contracts with similar North American Industry Classification System (NAICS) codes (like 541512) awarded by HHS or other health-focused agencies would provide a more relevant comparison point, considering factors like contract duration and the specific deliverables.
What are the primary risks associated with a Time and Materials (T&M) contract for computer systems design services?
The primary risk with a Time and Materials (T&M) contract for computer systems design services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials used, plus a fee. If the project scope is not well-defined, or if project management is weak on either the government or contractor side, the hours billed and materials consumed can escalate beyond initial estimates. This can lead to the contract exceeding its ceiling value. For computer systems design, this risk is amplified if requirements change frequently or if unforeseen technical challenges arise, leading to extended development or troubleshooting times. Effective government oversight, including detailed monitoring of labor hours and justification for work performed, is crucial to mitigate these risks.
What is the significance of this contract being a delivery order under a larger contract vehicle?
When a contract is issued as a delivery order (DO) under a larger contract vehicle, such as an Indefinite Delivery Indefinite Quantity (IDIQ) contract, it means that the scope of work and pricing for this specific order have been defined within the framework of a pre-existing master contract. This can streamline the procurement process for the agency, as the foundational contract terms have already been negotiated. However, it can sometimes reduce transparency for the public, as the details of the base IDIQ contract might be less accessible or comprehensive than a standalone contract. It also implies that the competition for this specific delivery order may have been limited to holders of that particular IDIQ vehicle, rather than being open to the entire market, depending on the terms of the IDIQ itself.
How does the lack of small business participation impact the federal small business contracting goals?
The absence of a small business set-aside or specific subcontracting requirements on this $60.6 million contract means that direct opportunities for small businesses are not mandated. Federal agencies have overall small business contracting goals (typically expressed as a percentage of prime contract dollars awarded to small businesses). While this specific contract may not contribute directly to those goals through set-asides or subcontracting, agencies can still meet their overall goals through other contracts. However, a pattern of awarding large IT contracts to large businesses without small business participation can limit the growth and development of the small business technology sector within the federal marketplace. Agencies often strive for a mix of contract types and sizes to ensure broad participation.
What are the potential implications of awarding computer systems design services to a single large contractor like Leidos?
Awarding computer systems design services to a single large contractor like Leidos can have several implications. On the positive side, it can ensure continuity, leverage the contractor's extensive resources, expertise, and established processes for complex projects. Large contractors often have robust project management capabilities and can handle large-scale, long-term engagements effectively. However, it can also lead to reduced competition, potentially higher costs if market alternatives are not fully explored, and a degree of vendor lock-in. For the government, it necessitates strong contract management to ensure performance and value. It also means that smaller, innovative firms may have fewer opportunities to compete for these specific types of large-scale federal IT projects.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 2010N11852
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,576,637
Exercised Options: $60,576,637
Current Obligation: $60,576,637
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: HHSD200201037219I
IDV Type: IDC
Timeline
Start Date: 2014-05-21
Current End Date: 2019-07-31
Potential End Date: 2019-07-31 00:00:00
Last Modified: 2024-12-09
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