CMS Enterprise Computing Services Contract Reaches $156.7M with Leidos, Inc
Contract Overview
Contract Amount: $156,755,701 ($156.8M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2014-05-30
End Date: 2022-11-30
Contract Duration: 3,106 days
Daily Burn Rate: $50.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CMS ENTERPRISE COMPUTING SERVICES (CECS) IGF::OT::IGF
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $156.8 million to LEIDOS, INC. for work described as: CMS ENTERPRISE COMPUTING SERVICES (CECS) IGF::OT::IGF Key points: 1. Contract awarded to Leidos, Inc. for computing infrastructure and related services. 2. Significant spending of over $156 million over an 8-year period. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under the IT sector, specifically computing infrastructure.
Value Assessment
Rating: good
The contract value of $156.7M over 8 years averages approximately $19.6M annually. Benchmarking against similar large-scale IT infrastructure contracts would be necessary for a precise assessment, but this appears within a reasonable range for comprehensive enterprise services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers benefited from potentially lower prices than a sole-source or limited competition scenario.
Public Impact
Ensures continued operation of critical Medicare and Medicaid IT systems. Supports the delivery of healthcare services to millions of Americans. Potential for innovation in computing infrastructure and data processing. Leidos, Inc. plays a key role in federal IT service provision.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 8 years may lead to vendor lock-in.
- Reliance on a single vendor for critical infrastructure.
- Potential for scope creep and cost overruns if not managed tightly.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability for essential services.
- Firm fixed price contract limits cost uncertainty.
Sector Analysis
This contract is within the Information Technology sector, specifically focusing on computing infrastructure, data processing, and web hosting. Spending in this area is substantial across federal agencies to support digital operations and services.
Small Business Impact
The data does not indicate specific subcontracting goals or participation by small businesses. Further analysis would be needed to determine the extent of small business involvement in this large contract.
Oversight & Accountability
The contract was awarded by the Centers for Medicare and Medicaid Services (CMS), a major agency within HHS. Oversight would involve regular performance reviews, contract management, and adherence to federal acquisition regulations.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Long contract duration (8 years).
- Potential for vendor lock-in.
- Reliance on a single provider for critical infrastructure.
- Lack of explicit small business participation data.
- Scope creep risk in long-term IT contracts.
Tags
computing-infrastructure-providers-data-, department-of-health-and-human-services, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $156.8 million to LEIDOS, INC.. CMS ENTERPRISE COMPUTING SERVICES (CECS) 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 Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $156.8 million.
What is the period of performance?
Start: 2014-05-30. End: 2022-11-30.
What specific IT services are included under the CECS contract and how do they align with CMS's current and future mission needs?
The CECS contract covers computing infrastructure, data processing, and web hosting. These services are fundamental to CMS's operations, supporting the administration of Medicare and Medicaid programs. Alignment with future needs would depend on the contract's flexibility for technological advancements and evolving healthcare IT requirements, such as cloud migration or advanced analytics capabilities.
What were the key performance indicators (KPIs) used during the evaluation of bids for this full and open competition, and how did Leidos, Inc. excel?
While specific KPIs are not detailed, typical evaluation criteria for such contracts include technical approach, past performance, management plan, and price. Leidos likely demonstrated superior capabilities in providing reliable and scalable computing infrastructure, a strong track record with similar government contracts, and a competitive pricing strategy that met or exceeded CMS's requirements.
How does the $156.7M expenditure compare to historical spending on similar IT infrastructure services by CMS or other federal health agencies?
Benchmarking this expenditure requires comparing it to similar contracts for enterprise-level IT infrastructure over comparable periods. Given the scale of CMS operations and the critical nature of its data, a multi-year contract of this value is not unusual. However, a detailed comparison with peer agencies or previous CMS contracts would reveal efficiency and potential cost savings or overruns.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related 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: RFPCMS20120007
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $338,857,466
Exercised Options: $156,755,701
Current Obligation: $156,755,701
Actual Outlays: $-186
Subaward Activity
Number of Subawards: 39
Total Subaward Amount: $6,157,977
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500201300016I
IDV Type: IDC
Timeline
Start Date: 2014-05-30
Current End Date: 2022-11-30
Potential End Date: 2023-11-30 00:00:00
Last Modified: 2025-12-16
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