Leidos, Inc. awarded $17.3M contract for National Level Exercise (NLE) 2011 by DHS FEMA
Contract Overview
Contract Amount: $17,257,993 ($17.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2010-05-14
End Date: 2012-04-15
Contract Duration: 702 days
Daily Burn Rate: $24.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: NATIONAL LEVEL EXERCISE (NLE) 2011
Place of Performance
Location: ABINGDON, HARFORD County, MARYLAND, 21009
State: Maryland Government Spending
Plain-Language Summary
Department of Homeland Security obligated $17.3 million to LEIDOS, INC. for work described as: NATIONAL LEVEL EXERCISE (NLE) 2011 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose risks if not managed closely. 3. The duration of 702 days indicates a significant, long-term engagement. 4. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 5. The award was made by the Department of Homeland Security (DHS) via the Federal Emergency Management Agency (FEMA).
Value Assessment
Rating: fair
The contract value of $17.3 million for a 702-day duration for a national-level exercise appears reasonable given the scope of such an event. However, without specific deliverables or performance metrics, a precise value-for-money assessment is challenging. The Time and Materials (T&M) contract type introduces potential for cost overruns if not meticulously monitored, which is a common concern with T&M engagements. Benchmarking against similar large-scale exercise management contracts would provide a clearer picture of pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 4 bidders (as indicated by 'no': 4) suggests a moderate level of competition for this requirement. A competitive process generally helps in achieving better pricing and service quality, but the specific number of bidders is crucial for determining the true extent of price discovery.
Taxpayer Impact: A competitive award process is beneficial for taxpayers as it encourages multiple companies to offer their best pricing and capabilities, potentially leading to cost savings compared to non-competitive awards.
Public Impact
The primary beneficiary is the Department of Homeland Security (FEMA), which receives support for planning and executing a critical national-level exercise. The services delivered likely involve complex logistical planning, simulation management, and evaluation support for disaster preparedness. The geographic impact is national, as the exercise aims to test response capabilities across the United States. Workforce implications include the engagement of specialized consultants and potentially the involvement of numerous government personnel and first responders during the exercise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to uncontrolled cost growth if not managed diligently.
- The specific performance metrics and deliverables are not detailed, making it difficult to assess the full scope of work and potential risks.
- The long duration of the contract requires sustained oversight to ensure continued value and adherence to objectives.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- The contractor, Leidos, Inc., is a large, established company with experience in government contracting.
- The contract supports a critical national security function (disaster preparedness exercise).
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The market for large-scale exercise management and simulation is specialized, often involving major defense and government contractors. Spending in this area is driven by the need for continuous preparedness and response capability testing by federal agencies. Comparable spending benchmarks would typically be found within DHS's overall budget for exercises and training, or across other agencies conducting similar large-scale simulations.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if mandated or pursued by the prime contractor. Without specific subcontracting plans, the direct impact on the small business ecosystem from this particular award is likely limited.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Homeland Security (FEMA contracting officers and program managers). As a Time and Materials contract, rigorous monitoring of labor hours, rates, and direct costs is essential. Transparency is typically managed through contract reporting requirements and performance reviews. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Homeland Security Exercise and Evaluation Program (HSEEP)
- National Exercise Program
- FEMA Preparedness Grants
- Department of Defense Wargaming and Simulation
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Lack of detailed performance metrics in the provided data.
- Need for robust oversight to manage long-duration contract.
Tags
sector-other, agency-dhs, agency-fema, contract-type-time-and-materials, competition-full-and-open, size-category-large, service-management-consulting, geography-national, program-national-level-exercise, contractor-leidos
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $17.3 million to LEIDOS, INC.. NATIONAL LEVEL EXERCISE (NLE) 2011
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).
What is the total obligated amount?
The obligated amount is $17.3 million.
What is the period of performance?
Start: 2010-05-14. End: 2012-04-15.
What is Leidos, Inc.'s track record with similar large-scale federal exercise contracts?
Leidos, Inc. has a significant history of performing complex contracts for federal agencies, including those involving large-scale exercises, simulations, and program management. Their experience spans across defense, intelligence, and homeland security sectors. For instance, they have been involved in supporting various Department of Defense exercises and national security initiatives. Their established presence and past performance suggest a capacity to handle the demands of a National Level Exercise. However, a detailed review of past performance evaluations, contract modifications, and any past disputes or challenges related to similar contracts would be necessary for a comprehensive assessment of their specific track record for this type of work.
How does the $17.3 million cost compare to similar national-level exercises?
Benchmarking the $17.3 million cost for the National Level Exercise (NLE) 2011 requires comparing it against similar large-scale, multi-jurisdictional exercises conducted by federal agencies. National-level exercises are inherently complex and resource-intensive, involving extensive planning, simulation, participant coordination, and after-action reporting. Costs can vary significantly based on the scope, duration, number of participants, geographic spread, and the specific threats or scenarios being tested. Without access to detailed cost breakdowns or data on comparable exercises from agencies like FEMA, DoD, or HHS, it is difficult to definitively state whether this amount represents excellent, fair, or concerning value. However, given the scale implied by 'National Level Exercise,' the figure appears within a plausible range for such a critical preparedness activity.
What are the primary risks associated with a Time and Materials (T&M) contract for exercise management?
The primary risk with a Time and Materials (T&M) contract for managing a national-level exercise is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and materials used, plus a fixed fee or profit margin. If the scope of work is not clearly defined, or if project management is weak, contractors may incur more hours or use more resources than initially anticipated, driving up the total cost to the government. For an exercise, this could manifest as extended planning phases, unforeseen logistical needs, or prolonged simulation periods. Effective oversight, detailed task orders, and strict monitoring of labor categories and rates are crucial to mitigate these risks and ensure the government receives good value.
How effective are national-level exercises like NLE 2011 in improving actual disaster response capabilities?
National-level exercises, such as the National Level Exercise (NLE) 2011, are designed to be critical tools for assessing and improving disaster response capabilities across federal, state, local, tribal, and territorial governments, as well as private sector partners. Their effectiveness lies in their ability to test complex coordination mechanisms, identify gaps in policies and procedures, validate existing plans, and provide a realistic training environment. The process typically includes extensive planning, execution, and a thorough after-action review (AAR) that identifies strengths and weaknesses. The real measure of effectiveness is whether the identified deficiencies are addressed and lead to tangible improvements in response plans, training, and resource allocation for future real-world events. The NLE series aims to enhance national resilience by simulating catastrophic events and refining the multi-agency response.
What is the historical spending trend for FEMA's exercise and simulation support contracts?
FEMA's spending on exercise and simulation support contracts has generally trended upwards over the years, reflecting an increasing emphasis on national preparedness and resilience following major events like 9/11 and Hurricane Katrina. The agency utilizes various mechanisms, including direct contracts, grants, and interagency agreements, to fund exercises and training programs. The scale and frequency of these exercises, from regional drills to national-level events like NLE, necessitate significant investment. While specific historical spending data for FEMA's exercise support contracts would require detailed analysis of budget appropriations and contract databases, it's evident that preparedness activities represent a substantial and consistent portion of FEMA's operational budget, driven by legislative mandates and evolving threat landscapes.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 2900 SABRE ST STE 800, VIRGINIA BEACH, VA, 02
Business Categories: Category Business, Not Designated a Small Business, Service Disabled Veteran Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $17,257,993
Exercised Options: $17,257,993
Current Obligation: $17,257,993
Parent Contract
Parent Award PIID: HSHQDC06D00014
IDV Type: IDC
Timeline
Start Date: 2010-05-14
Current End Date: 2012-04-15
Potential End Date: 2012-04-15 00:00:00
Last Modified: 2012-02-01
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