Leidos, Inc. awarded $23.9M contract for CSR software development and technical support by NIH
Contract Overview
Contract Amount: $23,961,717 ($24.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2015-10-30
End Date: 2020-10-31
Contract Duration: 1,828 days
Daily Burn Rate: $13.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF - LEIDOS, INC, CSR SOFTWARE DEVELOPMENT AND TECHNICAL SUPPORT, FY16, $538,062.15
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $24.0 million to LEIDOS, INC. for work described as: IGF::OT::IGF - LEIDOS, INC, CSR SOFTWARE DEVELOPMENT AND TECHNICAL SUPPORT, FY16, $538,062.15 Key points: 1. Contract value of $23.9 million over five years suggests a significant investment in IT infrastructure. 2. The contract was awarded through full and open competition, indicating a competitive bidding process. 3. The fixed-price contract type may offer cost certainty for the government, shifting performance risk to the contractor. 4. The duration of the contract (over 1800 days) points to a long-term need for these services. 5. The specific NAICS code (541512) for Computer Systems Design Services places this contract within a key IT sector. 6. The award to Leidos, Inc. represents a substantial commitment to a single prime contractor for these critical services.
Value Assessment
Rating: good
The total award value of $23.9 million over approximately five years averages to about $4.8 million annually. Benchmarking this against similar IT support contracts for federal agencies requires detailed analysis of scope and complexity. However, given the duration and the nature of software development and technical support, the pricing appears within a reasonable range for a large prime contractor. The firm-fixed-price structure suggests that the government has negotiated a set price for the defined scope of work, which is generally a favorable approach for managing costs when requirements are well-understood.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates there were 2 bids received (no: 2). A competitive process with multiple bidders generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios. The fact that two bids were submitted suggests there was sufficient interest in this requirement.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value by encouraging multiple companies to offer their most competitive pricing and technical solutions.
Public Impact
The primary beneficiaries are the National Institutes of Health (NIH) and its various research divisions, which will receive enhanced software development and technical support. Services delivered include crucial IT support and software development, essential for the operational efficiency of NIH's research initiatives. The geographic impact is primarily within the United States, supporting federal IT infrastructure and potentially remote work capabilities for NIH staff. Workforce implications may include the creation or sustainment of jobs within Leidos, Inc. and its potential subcontractors, particularly in IT and software engineering fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the contractor's proprietary solutions become deeply integrated.
- Reliance on a single prime contractor for critical IT functions could pose risks if performance issues arise.
- The fixed-price nature might incentivize cost-cutting that could impact quality if not closely monitored.
- The contract's duration could lead to challenges in adapting to rapidly evolving technological landscapes without significant change orders.
Positive Signals
- Awarded through full and open competition, indicating a robust and fair bidding process.
- The firm-fixed-price contract type provides cost predictability for the government.
- The long contract duration suggests a stable and ongoing need for these critical IT services.
- Leidos, Inc. is a large, established government contractor with a significant track record.
- The contract supports essential functions for the National Institutes of Health, a vital research agency.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related technical support services. The federal IT market is substantial, with agencies consistently investing in software development, cybersecurity, and infrastructure modernization. Comparable spending benchmarks for similar IT support contracts can vary widely based on agency size, complexity of systems, and specific service requirements. However, contracts in the multi-million dollar range over several years are common for mission-critical IT functions within large federal organizations like NIH.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded to Leidos, Inc., there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Leidos's subcontracting plan and the specific requirements of the work. Agencies are generally encouraged to ensure small businesses receive a fair share of subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the assigned contract specialist or administrator within the National Institutes of Health. Performance monitoring, quality assurance, and adherence to contract terms are key oversight functions. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to this contract arise.
Related Government Programs
- NIH IT Support Services
- Federal Software Development Contracts
- Computer Systems Design Services
- Health IT Modernization
- Leidos Inc. Government Contracts
Risk Flags
- Potential for cost overruns if scope is not well-defined.
- Risk of contractor performance issues impacting critical NIH operations.
- Dependency on a single vendor for essential IT services.
- Need for vigilant oversight to ensure value and quality over the contract term.
Tags
it-services, software-development, technical-support, health-it, national-institutes-of-health, department-of-health-and-human-services, leidos-inc, firm-fixed-price, full-and-open-competition, large-contract, information-technology, computer-systems-design-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $24.0 million to LEIDOS, INC.. IGF::OT::IGF - LEIDOS, INC, CSR SOFTWARE DEVELOPMENT AND TECHNICAL SUPPORT, FY16, $538,062.15
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 (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $24.0 million.
What is the period of performance?
Start: 2015-10-30. End: 2020-10-31.
What is Leidos, Inc.'s track record with the federal government, particularly with the NIH?
Leidos, Inc. is a major government contractor with a substantial history of serving various federal agencies, including the Department of Health and Human Services (HHS) and its components like the National Institutes of Health (NIH). Their portfolio includes a wide range of IT services, systems integration, and support functions. Reviewing historical contract data from sources like the Federal Procurement Data System (FPDS) would reveal the extent and nature of their past work with NIH, including performance ratings, previous contract values, and areas of expertise. A strong performance history with the agency would indicate a lower risk associated with this new award.
How does the $23.9 million contract value compare to similar IT support contracts awarded by NIH or other health agencies?
The $23.9 million contract value over approximately five years represents an average annual value of around $4.8 million. To benchmark this effectively, one would need to compare it against contracts for similar services (software development, technical support) awarded by NIH or comparable agencies (e.g., CDC, FDA) over similar timeframes. Factors such as the specific scope of work, complexity of systems supported, number of users, and required security levels significantly influence pricing. Without detailed scope comparison, it's difficult to definitively state if this represents high or low value, but it falls within the typical range for significant IT support engagements in the federal health sector.
What are the primary risks associated with a firm-fixed-price contract of this duration?
The primary risks associated with a firm-fixed-price (FFP) contract of this duration (over 5 years) revolve around scope creep and the contractor's ability to manage costs effectively over the long term. For the government, the risk is that the fixed price may become uncompetitive if market rates decrease or if the scope needs significant adjustment, potentially leading to costly change orders. For the contractor, the risk is that unforeseen cost increases (labor, technology) could erode profit margins if not adequately accounted for in the initial pricing. Effective contract management, clear performance metrics, and a well-defined baseline scope are crucial to mitigate these risks.
How effective is full and open competition in ensuring value for money for IT services like this?
Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for IT services. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. The presence of multiple bidders, as indicated by the two offers received in this case, suggests that the market found the requirement attractive and competitive. This process helps ensure that the selected contractor offers both technical capability and a competitive price, thereby maximizing taxpayer value.
What are the historical spending patterns for computer systems design services at NIH?
Historical spending patterns for computer systems design services (NAICS 541512) at NIH are substantial, reflecting the agency's reliance on complex IT systems to manage vast amounts of research data and support scientific endeavors. NIH consistently procures services related to software development, system integration, database management, and IT infrastructure support. Analyzing past FPDS data would show trends in contract awards for this category, including the average contract values, durations, and the prime contractors most frequently awarded these types of services. This contract appears to align with ongoing investments in maintaining and enhancing NIH's technological capabilities.
What are the potential implications of awarding a large IT contract to a single prime contractor like Leidos?
Awarding a large IT contract to a single prime contractor like Leidos, Inc. can offer benefits such as streamlined communication, unified accountability, and potentially more efficient project management due to a single point of contact. However, it also concentrates risk. If Leidos underperforms or faces financial difficulties, the impact on NIH's critical IT functions could be significant. Furthermore, it may limit opportunities for other vendors, including innovative small businesses, to contribute directly. Robust oversight and performance management are essential to ensure the government receives the expected value and maintains flexibility.
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: NIHJT2010001
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,961,717
Exercised Options: $23,961,717
Current Obligation: $23,961,717
Actual Outlays: $9,716,329
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $2,890,158
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200044W
IDV Type: GWAC
Timeline
Start Date: 2015-10-30
Current End Date: 2020-10-31
Potential End Date: 2020-10-31 00:00:00
Last Modified: 2026-04-06
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