CMS Spends $42M on Remote Identity Proofing and MFA Services from Leidos

Contract Overview

Contract Amount: $41,997,220 ($42.0M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2012-01-31

End Date: 2017-01-30

Contract Duration: 1,826 days

Daily Burn Rate: $23.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CMS ENTERPRISE SERVICE FOR REMOTE IDENTITY PROOFING AND MULTI-FACTOR AUTHENTICATION

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $42.0 million to LEIDOS, INC. for work described as: CMS ENTERPRISE SERVICE FOR REMOTE IDENTITY PROOFING AND MULTI-FACTOR AUTHENTICATION Key points: 1. Contract awarded to Leidos, Inc. for enterprise service. 2. Focus on identity proofing and multi-factor authentication for CMS. 3. Full and open competition method used. 4. Significant duration of 1826 days. 5. Firm fixed price contract type.

Value Assessment

Rating: fair

The total award amount is $41,997,219.90 over approximately five years. Without specific per-unit data or detailed service breakdowns, a precise value assessment is difficult. However, the duration and scope suggest a substantial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: Taxpayer funds are utilized for IT services supporting CMS operations, aiming to enhance security and access for beneficiaries and staff.

Public Impact

Enhanced security for sensitive health data. Improved access management for CMS systems. Potential impact on user experience for beneficiaries and providers. Supports digital transformation initiatives within healthcare.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of detailed performance metrics.
  • Potential for vendor lock-in over contract duration.
  • Dependency on a single vendor for critical security functions.

Positive Signals

  • Use of a competitive bidding process.
  • Focus on essential security services.
  • Firm fixed price contract can control costs.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, specifically related to IT security and identity management. Benchmarks for similar large-scale IT security contracts can vary widely based on scope and duration.

Small Business Impact

The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.

Oversight & Accountability

Oversight would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability for performance and adherence to contract terms is crucial.

Related Government Programs

  • Computer Systems Design Services
  • Department of Health and Human Services Contracting
  • Centers for Medicare and Medicaid Services Programs

Risk Flags

  • Potential for cost overruns if scope expands.
  • Risk of security vulnerabilities if not continuously updated.
  • Dependency on vendor for critical infrastructure.
  • Challenges in measuring ROI for security investments.

Tags

computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $42.0 million to LEIDOS, INC.. CMS ENTERPRISE SERVICE FOR REMOTE IDENTITY PROOFING AND MULTI-FACTOR AUTHENTICATION

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 Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $42.0 million.

What is the period of performance?

Start: 2012-01-31. End: 2017-01-30.

What specific security threats does this system aim to mitigate, and how effective has it been?

The system is designed to mitigate threats related to unauthorized access, identity theft, and data breaches by implementing robust remote identity proofing and multi-factor authentication. Effectiveness would be measured by metrics such as reduced security incidents, successful authentication rates, and compliance with security standards. Without specific performance reports, a definitive assessment of its effectiveness is not possible from this data alone.

How does the cost of this contract compare to industry benchmarks for similar services?

Comparing this $42 million contract over five years requires detailed service level agreements and market research. Given the 'full and open competition' award, it suggests a competitive price was achieved. However, without specific per-unit costs or detailed service scope, a direct benchmark against similar private sector contracts is challenging. The government's procurement process aims for fair and reasonable pricing.

What is the long-term strategy for identity proofing and authentication beyond this contract?

The long-term strategy is not detailed in the provided data. Agencies typically plan for contract renewals, transitions to new technologies, or potential consolidation of services. CMS would likely be evaluating evolving security needs and technological advancements to ensure continued robust identity management solutions post-contract expiration.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 1710 SAIC DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $41,997,220

Exercised Options: $41,997,220

Current Obligation: $41,997,220

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500200700020I

IDV Type: IDC

Timeline

Start Date: 2012-01-31

Current End Date: 2017-01-30

Potential End Date: 2017-01-30 00:00:00

Last Modified: 2021-05-19

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