HHS awards $819M contract for HCMI/CMDC Sequencing and Searchable Catalog to Leidos Biomedical Research Inc

Contract Overview

Contract Amount: $8,189,724 ($8.2M)

Contractor: Leidos Biomedical Research Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-28

End Date: 2027-09-24

Contract Duration: 3,648 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF HCMI/CMDC SEQUENCING AND HCMI SEARCHABLE CATALOG (MOONSHOT)

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $8.2 million to LEIDOS BIOMEDICAL RESEARCH INC for work described as: IGF::OT::IGF HCMI/CMDC SEQUENCING AND HCMI SEARCHABLE CATALOG (MOONSHOT) Key points: 1. The contract is a delivery order under a larger award, indicating a phased approach to procurement. 2. Leidos Biomedical Research Inc. is the sole awardee, raising questions about competition. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The duration of the contract is substantial, spanning nearly 10 years, suggesting a long-term need.

Value Assessment

Rating: questionable

The contract value of $818,972,400 over nearly 10 years is significant. Without specific benchmarks for similar sequencing and cataloging services, it's difficult to definitively assess value. The Cost Plus Fixed Fee structure warrants close monitoring for cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces the incentive for the contractor to offer the most competitive pricing. The rationale for the sole-source award needs further examination.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these services compared to what might have been achieved through a competitive bidding process.

Public Impact

Impacts the advancement of health data research through the development of a searchable catalog. Supports the National Institutes of Health's mission in biomedical research and data management. Ensures the availability of critical sequencing and data analysis capabilities for federal health initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost Plus Fixed Fee contract type can incentivize cost overruns.
Long contract duration requires sustained oversight.

Positive Signals

Supports critical NIH research initiatives.
Addresses a long-term need for data management and analysis.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically related to advanced biomedical data processing and management. Benchmarking against similar large-scale IT and research support contracts is challenging due to the specialized nature of the services.

Small Business Impact

There is no indication that small businesses are involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if opportunities for small business participation were explored.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight from the Department of Health and Human Services and the National Institutes of Health to ensure cost control, performance, and adherence to contract terms. Regular reviews of contractor performance and expenditures are crucial.

Related Government Programs

Facilities Support Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Lack of competition
Potential for cost overruns
Long contract duration
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $8.2 million to LEIDOS BIOMEDICAL RESEARCH INC. IGF::OT::IGF HCMI/CMDC SEQUENCING AND HCMI SEARCHABLE CATALOG (MOONSHOT)

Who is the contractor on this award?

The obligated recipient is LEIDOS BIOMEDICAL RESEARCH INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $8.2 million.

What is the period of performance?

Start: 2017-09-28. End: 2027-09-24.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data indicates the contract was 'NOT COMPETED.' A sole-source award typically requires a strong justification, such as the unique capabilities of the contractor or the urgency of the requirement. Without further documentation, it's unclear if alternative competitive strategies were explored or why they were deemed unsuitable for this specific procurement.

How will the Cost Plus Fixed Fee structure be managed to prevent cost overruns and ensure fair pricing for taxpayers?

Effective management of a Cost Plus Fixed Fee contract requires stringent oversight of incurred costs, regular audits, and clear performance metrics. The government must actively monitor the contractor's spending, ensure that costs are reasonable and allocable, and verify that the fixed fee is earned based on performance. Establishing clear ceilings and incentives for cost savings is also critical.

What are the key performance indicators (KPIs) for this contract, and how will contractor performance be measured to ensure the effectiveness of the sequencing and cataloging services?

Key performance indicators for this contract would likely include metrics related to data accuracy, catalog completeness, search functionality performance, system uptime, and turnaround times for sequencing data processing. The government should have a robust performance management plan in place to track these KPIs, conduct regular reviews, and address any deficiencies promptly to ensure the services meet the NIH's research objectives.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N01CO5240180

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 1050 BOYLES ST, FREDERICK, MD, 21702

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

Financial Breakdown

Contract Ceiling: $8,189,724

Exercised Options: $8,189,724

Current Obligation: $8,189,724

Actual Outlays: $2,164,317

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSN261201500003I

IDV Type: IDC

Timeline