Leidos Inc. awarded $23.8M for HRSA Data Warehouse Operations and Maintenance, a fixed-price award fee contract

Contract Overview

Contract Amount: $23,835,572 ($23.8M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2011-07-13

End Date: 2016-08-31

Contract Duration: 1,876 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE AWARD FEE

Sector: IT

Official Description: OTHER FUNCTIONS HRSA DATA WAREHOUSE OPERATIONS AND MAINTENANCE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.8 million to LEIDOS, INC. for work described as: OTHER FUNCTIONS HRSA DATA WAREHOUSE OPERATIONS AND MAINTENANCE Key points: 1. Contract value of $23.8M over 5 years suggests a significant investment in data infrastructure. 2. Fixed Price Award Fee contract type implies performance incentives tied to specific deliverables. 3. Full and Open Competition indicates a broad market solicitation, potentially leading to competitive pricing. 4. The contract duration of 1876 days (approx. 5 years) allows for sustained operational support. 5. Awarded by the Health Resources and Services Administration (HRSA), this contract supports critical health data functions. 6. The NAICS code 541512 points to Computer Systems Design Services, a common area for federal IT spending.

Value Assessment

Rating: good

The contract value of $23.8M over approximately five years averages to about $4.76M annually. This figure needs to be benchmarked against similar data warehouse operations and maintenance contracts within the federal government to fully assess value for money. The fixed-price award fee structure suggests that the government aims to control costs while incentivizing performance, which is a positive sign for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under Full and Open Competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The presence of two bids (no: 2) suggests a moderate level of competition for this specific contract.

Taxpayer Impact: Full and Open Competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive market rates, preventing potential overspending associated with less competitive procurement methods.

Public Impact

The primary beneficiaries are the Health Resources and Services Administration (HRSA) and its stakeholders, who rely on the data warehouse for critical health information. The services delivered include operations and maintenance of a data warehouse, ensuring data integrity, accessibility, and usability. The geographic impact is primarily within the United States, supporting federal health initiatives. Workforce implications include the need for skilled IT professionals in data management, system administration, and cybersecurity to support the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for vendor lock-in if transition planning is inadequate at contract end.
  • Reliance on a single vendor for critical data infrastructure could pose a risk if performance falters.
  • The fixed-price award fee structure requires careful monitoring to ensure performance targets are met and justified.

Positive Signals

  • Full and Open Competition promotes a competitive market, potentially leading to cost savings.
  • The contract duration allows for stability and continuity in essential data operations.
  • The fixed-price award fee structure incentivizes contractor performance and quality.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The federal government is a major consumer of such services, with significant spending allocated to maintaining and upgrading its vast IT infrastructure. Comparable spending benchmarks would involve analyzing other large-scale data warehouse operations and maintenance contracts across various federal agencies to gauge cost-effectiveness.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there explicit information regarding subcontracting plans for small businesses. This suggests that the primary focus was on securing the best overall solution through full and open competition, rather than specifically targeting small business participation. Further analysis would be needed to determine if small businesses are indirectly involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Health Resources and Services Administration. Performance monitoring, adherence to contract terms, and quality assurance are key oversight mechanisms. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

  • HRSA Electronic Handbooks
  • Federal Health IT Spending
  • Data Warehouse Modernization Programs
  • Health Information Exchange Initiatives

Risk Flags

  • Cybersecurity Risk
  • Data Integrity Risk
  • Vendor Performance Risk
  • System Availability Risk

Tags

it-services, health-it, data-warehousing, operations-and-maintenance, fixed-price-award-fee, full-and-open-competition, department-of-health-and-human-services, health-resources-and-services-administration, leidos-inc, virginia, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.8 million to LEIDOS, INC.. OTHER FUNCTIONS HRSA DATA WAREHOUSE OPERATIONS AND MAINTENANCE

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 (Health Resources and Services Administration).

What is the total obligated amount?

The obligated amount is $23.8 million.

What is the period of performance?

Start: 2011-07-13. End: 2016-08-31.

What is the historical spending trend for HRSA Data Warehouse Operations and Maintenance?

Historical spending data for this specific contract indicates a total award value of $23,835,571.87 over its duration from July 13, 2011, to August 31, 2016. This represents an average annual spend of approximately $4.77 million. To understand the trend, one would need to examine prior contracts for similar services to HRSA or compare this spending level to the agency's overall IT budget evolution during that period. Without prior contract data, it's difficult to ascertain if this represents an increase, decrease, or stable level of investment in data warehouse operations and maintenance.

How does the contractor, Leidos, Inc., perform on similar federal contracts?

Leidos, Inc. is a large federal contractor with a significant portfolio across various agencies and service areas. Assessing their performance on similar contracts would involve reviewing contract performance reports, past performance evaluations, and any documented issues or commendations. For this specific contract, the 'fixed-price award fee' structure suggests performance was monitored and potentially rewarded. A deeper dive into federal procurement data systems (like FPDS or SAM.gov) and agency-specific performance reviews would be necessary to provide a comprehensive analysis of Leidos' track record on comparable IT operations and maintenance contracts.

What are the key performance indicators (KPIs) associated with this contract?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided data, a 'Fixed Price Award Fee' contract typically ties a portion of the payment to the achievement of pre-defined performance standards. For a data warehouse operations and maintenance contract, these KPIs would likely include metrics related to system uptime and availability, data accuracy and integrity, response times for data requests, security compliance, and successful implementation of system updates or enhancements. The 'award fee' component suggests that exceeding baseline performance could result in additional compensation, incentivizing high-quality service delivery.

What is the potential impact of this contract on health data accessibility and research?

The reliable operation and maintenance of the HRSA Data Warehouse, as supported by this contract, are crucial for ensuring the accessibility and integrity of health data. This data is vital for various purposes, including public health monitoring, policy development, resource allocation, and medical research. By maintaining the infrastructure, the contract indirectly facilitates researchers' ability to access and analyze health trends, disease patterns, and healthcare outcomes, ultimately contributing to improved public health initiatives and evidence-based decision-making.

Were there any significant risks identified during the procurement or execution of this contract?

The provided data does not explicitly detail identified risks during procurement or execution. However, common risks associated with large IT operations and maintenance contracts include cybersecurity threats, system failures, data breaches, vendor performance issues, and cost overruns (though less likely with fixed-price). The 'Full and Open Competition' suggests an effort to mitigate risks by selecting from a competitive pool. The fixed-price award fee structure also aims to manage cost risk while incentivizing performance. A thorough risk assessment would typically be documented within the contract's official file.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 11951 FREEDOM DR, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,087,888

Exercised Options: $23,835,573

Current Obligation: $23,835,572

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010046

IDV Type: IDC

Timeline

Start Date: 2011-07-13

Current End Date: 2016-08-31

Potential End Date: 2017-07-17 00:00:00

Last Modified: 2023-07-12

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