Leidos Inc. awarded $20.7M for CDC Information Management Services, highlighting IT support needs
Contract Overview
Contract Amount: $20,710,911 ($20.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2016-09-15
End Date: 2021-09-28
Contract Duration: 1,839 days
Daily Burn Rate: $11.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::OT::IGF CDC INFORMATION MANAGEMENT SERVICES
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30329
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $20.7 million to LEIDOS, INC. for work described as: IGF::OT::IGF CDC INFORMATION MANAGEMENT SERVICES Key points: 1. Contract awarded to a large, established IT services provider. 2. Focus on computer systems design services indicates critical IT infrastructure support. 3. Delivery order under a larger contract suggests ongoing IT needs. 4. Time and Materials pricing model can pose cost control challenges. 5. Contract duration of over 1800 days points to long-term service requirements. 6. Geographic location in Georgia may impact local IT workforce dynamics.
Value Assessment
Rating: fair
The contract value of $20.7 million for information management services appears moderate for a federal IT contract of this duration. Benchmarking against similar computer systems design services contracts would be necessary for a definitive value-for-money assessment. The Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs if not closely managed, compared to fixed-price contracts. Without specific performance metrics or comparison data, it's difficult to definitively assess if the pricing is competitive or if the government is receiving excellent value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. With 3 bidders identified, this suggests a reasonable level of competition for this type of IT service. A competitive process generally helps in price discovery and can lead to more favorable pricing for the government. However, the specific details of the bidding process and the nature of the requirements would further inform the effectiveness of this competition.
Taxpayer Impact: Full and open competition, with multiple bidders, is generally beneficial for taxpayers as it encourages competitive pricing and potentially leads to better service quality for the allocated funds.
Public Impact
Federal agencies, specifically the CDC, benefit from enhanced information management capabilities. Services delivered include computer systems design, crucial for data processing and IT infrastructure. Geographic impact is primarily within the operational sphere of the CDC, likely nationwide in data reach. Workforce implications may involve specialized IT professionals supporting the CDC's mission.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can lead to cost overruns if not meticulously monitored.
- The long contract duration necessitates robust performance management to ensure continued value.
- Reliance on a single large contractor for critical IT functions could pose a risk if not managed proactively.
Positive Signals
- Awarded through full and open competition, suggesting a competitive marketplace.
- The contract supports essential information management functions for a key public health agency.
- The contractor, Leidos, Inc., is a well-established entity in the federal IT services sector.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The federal IT services market is substantial, with agencies consistently investing in systems to manage vast amounts of data and support complex operations. Contracts like this are typical for agencies requiring ongoing support for their digital infrastructure. Comparable spending benchmarks would involve looking at other large IT service contracts awarded by HHS or similar agencies for system design and management.
Small Business Impact
This contract was not specifically set aside for small businesses, and there is no indication of significant subcontracting opportunities for small businesses based on the provided data. The award to a large prime contractor like Leidos, Inc. suggests that the primary focus was on capability and past performance rather than small business participation goals. Further analysis would be needed to determine if any subcontracting plans were mandated or voluntarily pursued.
Oversight & Accountability
Oversight for this contract would typically be managed by the Centers for Disease Control and Prevention (CDC) contracting officers and program managers. The contract's performance would be monitored against the terms and conditions, including delivery schedules and service level agreements. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- CDC IT Modernization Efforts
- HHS Information Technology Services
- Federal Civilian IT Procurement
- Computer Systems Design Services Contracts
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Risk of service degradation if performance is not actively managed over the long duration.
- Dependency on a single contractor for critical IT functions.
Tags
it-services, computer-systems-design, information-management, department-of-health-and-human-services, centers-for-disease-control-and-prevention, leidos-inc, full-and-open-competition, time-and-materials, delivery-order, georgia, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $20.7 million to LEIDOS, INC.. IGF::OT::IGF CDC INFORMATION MANAGEMENT SERVICES
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 $20.7 million.
What is the period of performance?
Start: 2016-09-15. End: 2021-09-28.
What is Leidos, Inc.'s track record with the federal government, particularly within the Department of Health and Human Services?
Leidos, Inc. is a major government contractor with a significant presence across various federal agencies, including the Department of Health and Human Services (HHS). They have a history of providing a wide range of services, including IT, logistics, and engineering. Within HHS, Leidos has secured numerous contracts, often involving complex IT systems, data analytics, and health IT solutions. Their track record generally indicates experience with large-scale federal projects, though like any large contractor, specific contract performance can vary. Analyzing their past performance ratings and any documented issues on similar HHS contracts would provide a more granular understanding of their reliability and effectiveness in delivering services.
How does the $20.7 million contract value compare to similar CDC information management contracts over the past five years?
To compare the $20.7 million contract value, one would need to analyze historical data for similar information management and computer systems design services awarded by the CDC. Federal procurement databases (like FPDS) would be the primary source for this. If the CDC has awarded multiple contracts in the range of $5-10 million annually for similar services, then $20.7 million over approximately five years (1839 days) might represent a substantial, but not necessarily outlier, investment. Conversely, if similar services were typically procured at lower aggregate values or shorter durations, this contract could be considered larger or longer-term. The nature of the services (e.g., system development vs. maintenance) also influences cost, making direct comparisons crucial.
What are the primary risks associated with a Time and Materials (T&M) contract for IT services, and how are they typically mitigated?
The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. This can be exacerbated if the scope of work is not well-defined or if contractor efficiency is low. Mitigation strategies employed by the government include establishing labor hour ceilings, setting not-to-exceed (NTE) limits, requiring detailed timesheets and justifications for hours worked, and implementing robust oversight and performance monitoring. For IT services, defining clear deliverables and milestones, even within a T&M framework, helps ensure progress and accountability, reducing the risk of uncontrolled spending.
Given the 'full and open competition' award, what does the number of bidders (3) suggest about the market for CDC's IT support services?
An award under 'full and open competition' with three bidders suggests a moderately competitive market for the CDC's IT support services. While more bidders generally indicate higher competition, three bidders demonstrate that the opportunity was accessible to multiple qualified vendors. This number is often seen as a healthy minimum for competitive bidding. It implies that the market is not overly concentrated with only one or two dominant players, nor is it so niche that only a single vendor could realistically compete. The pricing and terms offered by these three vendors would provide insight into the prevailing market rates and service expectations for this type of requirement.
What are the potential implications of this contract's duration (1839 days) on service continuity and contractor performance?
A contract duration of 1839 days (approximately 5 years) provides significant service continuity for the CDC's information management needs, ensuring that essential IT functions are consistently supported. This long-term commitment allows the contractor, Leidos, Inc., to invest in specialized resources and develop deep institutional knowledge. However, it also necessitates rigorous performance management from the CDC. Long durations can sometimes lead to complacency if not actively overseen. The CDC must ensure regular performance reviews, adapt to evolving technological needs, and maintain leverage to address any performance deficiencies to ensure sustained value and prevent service degradation over the contract's lifespan.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 2016Q66091
Offers Received: 3
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: $21,185,433
Exercised Options: $20,710,911
Current Obligation: $20,710,911
Actual Outlays: $384,401
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: HHSD200201037219I
IDV Type: IDC
Timeline
Start Date: 2016-09-15
Current End Date: 2021-09-28
Potential End Date: 2021-09-28 00:00:00
Last Modified: 2024-12-05
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