HHS Awards $58M for NIH Network Support to Leidos, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $58,183,534 ($58.2M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2011-12-20
End Date: 2019-04-30
Contract Duration: 2,688 days
Daily Burn Rate: $21.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TAS::75 4554::TAS CIT: SAIC - NETWORK SUPPORT SERVICE - C3043
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $58.2 million to LEIDOS, INC. for work described as: TAS::75 4554::TAS CIT: SAIC - NETWORK SUPPORT SERVICE - C3043 Key points: 1. Contract awarded to Leidos, Inc. for network support services. 2. Significant contract value of $58.18 million over its period of performance. 3. Competition was full and open, suggesting potential for competitive pricing. 4. Services fall under Computer Systems Design, a key IT sector.
Value Assessment
Rating: good
The contract's firm fixed price structure provides cost certainty. Benchmarking against similar IT support contracts would be beneficial to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a broad range of potential offerors.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the network support services.
Public Impact
Ensures continued operation of critical health research IT infrastructure. Supports the National Institutes of Health's mission through reliable network services. Potential impact on other IT service providers seeking similar federal contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 2688 days (over 7 years) may lead to price escalation risks.
- Lack of specific performance metrics in provided data makes quality assessment difficult.
Positive Signals
- Firm Fixed Price contract type offers budget predictability.
- Awarded under Full and Open Competition, indicating a competitive process.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending in this area is substantial across federal agencies, supporting essential digital infrastructure.
Small Business Impact
The data indicates that small businesses were not the primary awardee, and it is unclear if they participated as subcontractors. Further investigation into subcontracting opportunities would be warranted.
Oversight & Accountability
The contract was awarded by the Department of Health and Human Services to support the National Institutes of Health. Standard federal procurement oversight processes would apply.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Long contract duration may increase risk of cost overruns or outdated technology.
- Potential for vendor lock-in if switching providers is complex.
- Dependence on a single vendor for critical network infrastructure.
- Lack of explicit small business subcontracting goals noted.
Tags
computer-systems-design-services, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $58.2 million to LEIDOS, INC.. TAS::75 4554::TAS CIT: SAIC - NETWORK SUPPORT SERVICE - C3043
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 $58.2 million.
What is the period of performance?
Start: 2011-12-20. End: 2019-04-30.
What was the average annual cost for these network support services?
The total award was $58,183,534.30 over a period of 2688 days. This equates to approximately $21,646 per day or roughly $7.89 million annually. This figure represents the total value and does not account for potential variations in service levels or resource allocation throughout the contract's lifespan.
What specific risks were identified during the full and open competition process?
While full and open competition generally mitigates price risks, specific risks could include the complexity of integrating Leidos's network support with existing NIH infrastructure. Ensuring seamless transition and maintaining high availability of critical research networks would be paramount.
How effectively did the competitive process ensure the best value for the government?
The full and open competition suggests a robust process aimed at achieving best value. However, a definitive assessment requires reviewing the evaluation criteria used, the number of bids received, and the technical and cost proposals submitted by all offerors.
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
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
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: $76,855,044
Exercised Options: $58,183,534
Current Obligation: $58,183,534
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 263010046
IDV Type: IDC
Timeline
Start Date: 2011-12-20
Current End Date: 2019-04-30
Potential End Date: 2019-04-30 00:00:00
Last Modified: 2023-07-12
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