Leidos Inc. awarded $98.5M for Human Resources Consulting Services by DHS, extending existing IDIQ contract

Contract Overview

Contract Amount: $98,517,359 ($98.5M)

Contractor: Leidos Inc

Awarding Agency: Department of Homeland Security

Start Date: 2016-01-02

End Date: 2017-01-01

Contract Duration: 365 days

Daily Burn Rate: $269.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: IGF::CL,CT::IGF THE PURPOSE OF TASK ORDER HSTS01-16-J-HRM025 IS TO FUND THE HEREIN IDENTIFIED OPTION PERIOD 7 CLINS AS EXERCISED AND AUTHORIZED PER MODIFICATION P00177 TO THE OHCACCESS INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ) CONTRACT HSTS01-08-D-HRM010.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $98.5 million to LEIDOS INC for work described as: IGF::CL,CT::IGF THE PURPOSE OF TASK ORDER HSTS01-16-J-HRM025 IS TO FUND THE HEREIN IDENTIFIED OPTION PERIOD 7 CLINS AS EXERCISED AND AUTHORIZED PER MODIFICATION P00177 TO THE OHCACCESS INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ) CONTRACT HSTS01-08-D-HRM010. Key points: 1. Contract value represents a significant investment in HR consulting for TSA. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed Price Award Fee contract type indicates performance incentives tied to cost and quality. 4. The contract duration of 365 days suggests a focused, one-year effort for the option period. 5. This task order is part of a larger IDIQ contract, implying ongoing program support. 6. The specific NAICS code 541612 points to specialized HR consulting expertise.

Value Assessment

Rating: good

The contract value of $98.5 million for a one-year period for Human Resources Consulting Services appears substantial. Benchmarking against similar large-scale HR consulting contracts would be necessary for a precise value-for-money assessment. However, the fixed-price award fee structure suggests an attempt to control costs while incentivizing performance, which is a positive sign. The absence of detailed performance metrics in the provided data makes a definitive assessment challenging, but the scale of the award implies a critical need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding environment, likely resulting in a more competitive price discovery process. The specific number of bidders is not provided, but the open competition framework is a positive indicator for achieving fair market value. This approach typically leads to a wider range of proposals and potentially more innovative solutions.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible services at a reasonable price, reducing the risk of overpayment.

Public Impact

The Transportation Security Administration (TSA) is the primary beneficiary, receiving essential HR consulting services. Services delivered likely include strategic HR planning, policy development, and workforce management support. The geographic impact is primarily within the operational areas of the TSA, likely nationwide. Workforce implications may involve improvements in TSA's HR processes, potentially impacting employee morale and efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in future option periods if not tightly managed.
Reliance on a single contractor (Leidos Inc.) for critical HR functions could pose a risk if performance falters.
The award fee mechanism requires careful monitoring to ensure it truly drives desired outcomes and doesn't inflate costs unnecessarily.

Positive Signals

Awarded under full and open competition, suggesting a competitive market was leveraged.
Fixed Price Award Fee structure provides some cost control while incentivizing performance.
The contract is a task order under an existing IDIQ, indicating a pre-vetted and established contracting vehicle.
The contractor, Leidos Inc., is a large, established entity with significant federal contracting experience.

Sector Analysis

The Human Resources Consulting Services sector within the federal government is a significant market, supporting agencies in managing their most valuable asset: their people. This contract falls within the professional services category, specifically management and HR consulting. Comparable spending benchmarks would involve looking at other large federal agencies' expenditures on similar HR transformation or support initiatives. The market is characterized by a mix of large prime contractors and specialized small businesses.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. While Leidos Inc. is a large prime contractor, there may be subcontracting opportunities for small businesses within the scope of this HR consulting work. However, without specific subcontracting plans or goals detailed, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officers and program managers. The Inspector General's office for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS, where basic information is publicly available. The effectiveness of oversight depends on robust performance monitoring and adherence to contractual terms.

Related Government Programs

Department of Homeland Security - Human Resources Management
Transportation Security Administration - Workforce Services
Federal Human Capital Consulting Contracts
IDIQ Contract Vehicles - OHCACCESS
Professional Services - Management Consulting

Risk Flags

Potential for cost overruns if award fee criteria are not strictly managed.
Performance risk associated with the complexity of HR consulting services.
Contractor dependency risk due to the scale of the award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $98.5 million to LEIDOS INC. IGF::CL,CT::IGF THE PURPOSE OF TASK ORDER HSTS01-16-J-HRM025 IS TO FUND THE HEREIN IDENTIFIED OPTION PERIOD 7 CLINS AS EXERCISED AND AUTHORIZED PER MODIFICATION P00177 TO THE OHCACCESS INDEFINITE DELIVERY INDEFINITE QUANTITY (IDIQ) CONTRACT HSTS01-08-D-HRM010.

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 $98.5 million.

What is the period of performance?

Start: 2016-01-02. End: 2017-01-01.

What is the track record of Leidos Inc. in delivering Human Resources Consulting Services to federal agencies?

Leidos Inc. has a substantial track record as a federal contractor, often involved in large-scale IT, engineering, and professional services. While specific details on their HR consulting performance for TSA under this particular task order require deeper analysis of past performance reviews and contract close-out reports, their general experience suggests they possess the organizational capacity to handle complex projects. Their portfolio includes work across various federal agencies, often in mission-critical areas. Evaluating their past performance on similar HR-focused contracts, including adherence to schedules, budget management, and client satisfaction, would provide a clearer picture of their capabilities and reliability in this specific domain.

How does the $98.5 million award compare to historical spending on HR consulting by the TSA or DHS?

To accurately compare the $98.5 million award, historical spending data for HR consulting services by the TSA and DHS would need to be analyzed over several fiscal years. This contract represents a significant single-year investment. Without access to detailed historical procurement data, it's difficult to ascertain if this amount is an increase, decrease, or consistent with past trends. Factors such as the scope of services, the number of employees supported, and the complexity of HR initiatives undertaken by the agency in previous years would influence these comparisons. A trend analysis would reveal if the agency is increasing or decreasing its reliance on external HR consulting.

What are the primary risks associated with this specific contract, beyond general contract risks?

Primary risks specific to this contract include potential over-reliance on a single large contractor (Leidos Inc.) for critical HR functions, which could lead to vendor lock-in or reduced flexibility. The 'Award Fee' component introduces a risk if the performance metrics are not clearly defined, measurable, and aligned with agency goals, potentially leading to disputes or suboptimal outcomes. Furthermore, the complexity of HR consulting, which touches upon sensitive employee data and organizational change, carries inherent risks related to data security, employee morale, and resistance to change. Ensuring seamless integration with existing TSA HR systems and personnel is also a critical risk factor.

How effective has the 'Fixed Price Award Fee' contract type been in managing costs and ensuring performance for similar federal HR consulting contracts?

The 'Fixed Price Award Fee' (FPAF) contract type aims to balance cost control with performance incentives. In theory, the fixed-price element caps the contractor's base fee, while the award fee provides a mechanism to reward exceptional performance beyond minimum requirements. Its effectiveness hinges on the clarity and measurability of the award criteria. When well-defined, FPAF can drive high performance and cost-consciousness. However, poorly defined criteria can lead to contractor dissatisfaction, disputes, or the agency paying higher fees than warranted. For federal HR consulting, success depends on linking award criteria directly to tangible improvements in HR service delivery, efficiency, or strategic alignment.

What is the potential impact of this contract on the broader federal HR consulting market, particularly for small and medium-sized businesses?

This contract, awarded to a large prime contractor (Leidos Inc.) under full and open competition without a small business set-aside, suggests limited direct impact for small businesses as prime awardees. However, it could create subcontracting opportunities if Leidos chooses to engage smaller firms for specialized HR services. The overall impact on the market depends on the specific services procured; if it involves innovative solutions or niche expertise, it could signal demand in those areas. Conversely, large contracts awarded to major players can sometimes consolidate market share, making it harder for smaller, emerging firms to compete for similar large-scale federal engagements.

Are there any known issues or controversies related to Leidos Inc.'s past performance on similar federal contracts?

A comprehensive review of Leidos Inc.'s past performance would require accessing detailed contract databases, past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and potentially news archives or IG reports. While Leidos is a major federal contractor with a broad range of services, like any large company, it may have faced performance challenges or disputes on specific contracts. Without specific data points related to this task order or directly comparable HR consulting contracts, it's impossible to definitively state if there are known issues. A thorough due diligence process would involve examining their performance history for similar service types and agencies.

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

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

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: $100,123,837

Exercised Options: $100,123,837

Current Obligation: $98,517,359

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0108DHRM010

IDV Type: IDC

Timeline