Leidos Inc. contract for HR consulting services awarded by DHS, valued at over $141M, with 3 bidders
Contract Overview
Contract Amount: $141,274,966 ($141.3M)
Contractor: Leidos Inc
Awarding Agency: Department of Homeland Security
Start Date: 2010-12-30
End Date: 2012-01-01
Contract Duration: 367 days
Daily Burn Rate: $384.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE AWARD FEE
Sector: Other
Official Description: LM CONTRACT - HSTS01-08-D-HRM010 - ZERO DOLLAR PR TO TO REVISE OPTION YEAR 2 CLIN STRUCTURE UNDER THE IDIQ CONTRACT AS A RESULT OF THE CR
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $141.3 million to LEIDOS INC for work described as: LM CONTRACT - HSTS01-08-D-HRM010 - ZERO DOLLAR PR TO TO REVISE OPTION YEAR 2 CLIN STRUCTURE UNDER THE IDIQ CONTRACT AS A RESULT OF THE CR Key points: 1. The contract's value of over $141 million suggests a significant investment in human resources consulting. 2. With three bidders, the competition level indicates a moderately competitive environment for these services. 3. The fixed-price award fee contract type aims to incentivize performance while managing costs. 4. This contract falls under the Human Resources Consulting Services category, indicating a focus on workforce management and development. 5. The contract's duration and delivery order structure suggest a phased approach to service delivery. 6. The Department of Homeland Security's reliance on this contract highlights the importance of HR support for its operations.
Value Assessment
Rating: fair
The contract's total award value of over $141 million for Human Resources Consulting Services is substantial. Benchmarking this against similar contracts for large federal agencies would be necessary to determine value for money. The fixed-price award fee structure suggests an attempt to control costs while rewarding performance, but the ultimate value depends on the effectiveness of the services delivered and the award fee earned. Without specific performance metrics or comparisons to market rates for similar consulting engagements, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, with three bidders participating. This level of competition is moderate and suggests that multiple firms were interested and capable of providing the required human resources consulting services. While three bidders are better than one or two, a higher number of bidders could potentially drive prices down further and increase the likelihood of selecting the most cost-effective solution. The agency's approach to competition appears to have been standard for this type of service.
Taxpayer Impact: A moderate level of competition means taxpayers likely received a reasonably competitive price, but there may have been opportunities for even greater savings with more bidders.
Public Impact
The Department of Homeland Security benefits from enhanced human resources consulting services, potentially improving workforce management and efficiency. Services delivered likely include strategic HR planning, organizational development, and HR policy implementation. The geographic impact is primarily within the Department of Homeland Security's operational areas, likely nationwide. Workforce implications could include improved employee relations, better talent acquisition, and more effective HR support for DHS personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if award fees are consistently maximized without proportional performance gains.
- Risk of vendor lock-in if the consulting services become deeply integrated into agency operations.
- Dependency on contractor expertise could lead to internal skill gaps if not managed properly.
Positive Signals
- Full and open competition suggests a fair process and potential for competitive pricing.
- Fixed-price award fee structure provides some cost control while incentivizing performance.
- The contract's focus on HR consulting addresses critical support functions for a large agency.
Sector Analysis
The federal IT consulting and professional services market is vast, with agencies frequently outsourcing specialized functions like human resources. This contract for HR consulting services fits within the broader professional services sector, which includes management and financial consulting, and IT services. Spending in this area is driven by the need for specialized expertise that government workforces may not possess internally, or to manage large-scale organizational changes. Comparable spending benchmarks would involve looking at other large federal contracts for HR consulting or broader professional services awarded to major prime contractors.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, Leidos Inc., is a large business. While there is no direct set-aside, large prime contractors are often required to meet subcontracting goals with small businesses. The extent to which Leidos Inc. will utilize small businesses for subcontracting will determine the impact on the small business ecosystem for this particular contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Homeland Security. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.
Related Government Programs
- Human Resources Management Services
- Professional Services Contracts
- Department of Homeland Security Contracts
- Large Federal Consulting Engagements
- IDIQ Contract Modifications
Risk Flags
- Contract Value Exceeds $100 Million
- Fixed Price Award Fee Contract Type
- Sole Source Potential (if options exercised)
- Long Contract Duration
Tags
human-resources, consulting-services, department-of-homeland-security, transportation-security-administration, leidos-inc, fixed-price-award-fee, full-and-open-competition, delivery-order, large-business, virginia, professional-services, hr-consulting
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $141.3 million to LEIDOS INC. LM CONTRACT - HSTS01-08-D-HRM010 - ZERO DOLLAR PR TO TO REVISE OPTION YEAR 2 CLIN STRUCTURE UNDER THE IDIQ CONTRACT AS A RESULT OF THE CR
Who is the contractor on this award?
The obligated recipient is LEIDOS INC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Transportation Security Administration).
What is the total obligated amount?
The obligated amount is $141.3 million.
What is the period of performance?
Start: 2010-12-30. End: 2012-01-01.
What is the historical spending pattern for Human Resources Consulting Services by the Department of Homeland Security?
Analyzing historical spending for Human Resources Consulting Services by the Department of Homeland Security (DHS) requires examining contract databases over several fiscal years. Typically, agencies like DHS utilize such services for a range of needs, including organizational restructuring, talent management, employee benefits administration, and HR system implementation. Spending can fluctuate based on agency priorities, budget allocations, and specific projects. For instance, periods of significant organizational change or the implementation of new HR technologies often correlate with increased spending in this category. Without access to specific historical data for DHS's HR consulting spend, it's difficult to provide precise figures, but it's reasonable to assume consistent, albeit variable, expenditure given the scale and complexity of managing a large federal workforce. This contract's value of over $141 million suggests a significant, potentially multi-year investment, which could represent a substantial portion of DHS's HR consulting budget during its performance period.
How does the pricing of this contract compare to similar HR consulting contracts awarded by other federal agencies?
Comparing the pricing of this Leidos Inc. contract to similar HR consulting contracts requires access to a comprehensive database of federal awards, including detailed pricing structures and service scopes. Factors such as the specific services rendered (e.g., strategic planning, system implementation, policy development), the duration of the contract, the level of expertise required, and the number of bidders influence pricing. Given that this is a fixed-price award fee contract with a value exceeding $141 million, it suggests a large-scale, potentially complex engagement. Benchmarking would involve identifying contracts with similar scope, duration, and agency size. Without such direct comparisons, it's challenging to definitively state if the pricing is competitive. However, the presence of three bidders in a full and open competition suggests that the pricing was likely deemed reasonable by the agency and acceptable to the market.
What are the key performance indicators (KPIs) used to assess the performance of Leidos Inc. under this contract?
The key performance indicators (KPIs) for this contract would be defined in the contract's Performance Work Statement (PWS) or Statement of Work (SOW). For Human Resources Consulting Services, typical KPIs might include metrics related to the efficiency of HR processes, employee satisfaction scores, successful implementation of HR initiatives, adherence to project timelines, and the achievement of specific organizational development goals. Since this is a Fixed Price Award Fee (FPAF) contract, the 'award fee' component is directly tied to the contractor's performance against pre-defined criteria and standards. These criteria are likely quantifiable and measurable, allowing the government to objectively assess the quality and effectiveness of the services provided by Leidos Inc. The specific KPIs would be tailored to the unique objectives of the Department of Homeland Security for this particular engagement.
What is the track record of Leidos Inc. in delivering similar HR consulting services to federal agencies?
Leidos Inc. has a substantial track record in providing a wide array of professional services, including IT, engineering, and management consulting, to various federal agencies. While their portfolio is diverse, their experience specifically in Human Resources consulting would need to be evaluated based on past contracts. Large federal contractors like Leidos often have dedicated divisions or teams focused on HR transformation, workforce management, and organizational development. Their ability to secure and successfully execute contracts of this magnitude, like the over $141 million DHS award, suggests a demonstrated capability. A thorough assessment would involve reviewing past performance evaluations (e.g., CPARS reports) for similar contracts, examining the scope and complexity of services previously delivered, and considering client satisfaction feedback from other government entities.
What are the potential risks associated with a contract of this size and scope for HR consulting?
Contracts of this size and scope, such as the over $141 million DHS award to Leidos Inc., carry several potential risks. One significant risk is the potential for cost overruns, especially if the award fee structure incentivizes the contractor to achieve targets that may not align perfectly with the government's ultimate cost-efficiency goals, or if unforeseen complexities arise. Another risk is vendor lock-in, where the agency becomes overly dependent on the contractor's expertise and systems, making it difficult or costly to transition to a new provider or bring services in-house. There's also the risk of misalignment between the contractor's understanding of HR needs and the agency's actual requirements, potentially leading to suboptimal outcomes. Furthermore, managing such a large contract requires significant government oversight to ensure performance, quality, and adherence to regulations, which itself can be resource-intensive.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIXED PRICE AWARD FEE (M)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 2650 PARK TOWER DR, VIENNA, VA, 22180
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $151,295,087
Exercised Options: $141,274,966
Current Obligation: $141,274,966
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HSTS0108DHRM010
IDV Type: IDC
Timeline
Start Date: 2010-12-30
Current End Date: 2012-01-01
Potential End Date: 2012-01-01 00:00:00
Last Modified: 2017-11-02
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