HHS Awards $76.6M for Next Generation IT Services to Leidos, Inc
Contract Overview
Contract Amount: $76,599,884 ($76.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2018-01-31
End Date: 2026-12-31
Contract Duration: 3,256 days
Daily Burn Rate: $23.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: NEXT GENERATION IT SERVICES (NGITS) ENGINEERING TASK ORDER SERVICES
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $76.6 million to LEIDOS, INC. for work described as: NEXT GENERATION IT SERVICES (NGITS) ENGINEERING TASK ORDER SERVICES Key points: 1. Leidos, Inc. secured a significant contract for IT engineering task order services. 2. The contract falls under the 'Other Computer Related Services' NAICS code. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract's duration extends to late 2026, indicating a long-term need. 5. The award value is substantial, requiring careful monitoring of performance and cost.
Value Assessment
Rating: good
The award value of $76.6 million over its term appears reasonable for comprehensive IT engineering task order services. Benchmarking against similar large-scale IT service contracts would provide further validation.
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 are likely benefiting from a fair market price for these critical IT services.
Public Impact
Ensures continued IT support for the Department of Health and Human Services. Supports critical infrastructure for healthcare and public health initiatives. Potential for innovation in IT service delivery through task orders. Impacts the IT services sector by awarding a large contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in task orders.
- Reliance on a single contractor for diverse IT needs.
- Need for robust performance monitoring to ensure value.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability for IT services.
- Significant investment in critical HHS IT infrastructure.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across federal agencies, supporting a wide range of digital operations and modernization efforts.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses were likely not direct awardees, though they may participate as subcontractors.
Oversight & Accountability
The use of a BPA Call suggests a framework is in place, but oversight will be crucial to manage individual task orders effectively and ensure adherence to contract terms and pricing.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Potential for cost overruns if task orders are not tightly managed.
- Risk of vendor lock-in if alternatives are not explored.
- Dependence on a single large contractor for critical IT functions.
- Need for continuous monitoring of service quality and performance.
Tags
other-computer-related-services, department-of-health-and-human-services, va, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $76.6 million to LEIDOS, INC.. NEXT GENERATION IT SERVICES (NGITS) ENGINEERING TASK ORDER SERVICES
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 (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $76.6 million.
What is the period of performance?
Start: 2018-01-31. End: 2026-12-31.
How will task order performance be monitored to ensure it aligns with the overall contract value and objectives?
Effective oversight will involve rigorous review of each task order's scope, deliverables, and associated costs. Key performance indicators (KPIs) should be established and tracked, with regular performance reviews conducted by the contracting officer's representative (COR). Any deviations from expected performance or cost overruns should trigger immediate corrective action and communication with Leidos, Inc.
What mechanisms are in place to ensure continued competitive pricing as task orders are issued over the contract's lifespan?
While the initial award was competitive, ongoing price reasonableness for task orders will depend on the specific terms negotiated within the BPA framework. The agency should periodically benchmark task order pricing against market rates and consider re-competition for significant future requirements if the current contract structure allows and proves less cost-effective.
How does this contract contribute to the HHS's broader IT modernization goals and digital transformation strategy?
This contract is intended to provide the engineering and task order services necessary to support HHS's IT infrastructure and potentially drive modernization efforts. The specific contribution will depend on the nature of the task orders issued, focusing on areas like system upgrades, cloud migration, cybersecurity enhancements, or development of new digital services aligned with HHS's strategic objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer 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
Offers Received: 5
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
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: $76,599,884
Exercised Options: $76,599,884
Current Obligation: $76,599,884
Actual Outlays: $38,551,505
Subaward Activity
Number of Subawards: 91
Total Subaward Amount: $14,258,142
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSP233201800015B
IDV Type: BPA
Timeline
Start Date: 2018-01-31
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-03-05
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