DHS awards $38.4M for HR consulting, extending services for three months

Contract Overview

Contract Amount: $38,424,725 ($38.4M)

Contractor: Leidos Inc

Awarding Agency: Department of Homeland Security

Start Date: 2016-09-28

End Date: 2017-06-30

Contract Duration: 275 days

Daily Burn Rate: $139.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: IGF::CT::IGF THE PURPOSE OF TASK ORDER HSTS01-16-J-HRM136 OF THE BASE IDIQ CONTRACT HSTS01-08-D-HRM010 IS TO FUND THE BASE PERIOD OF THE EXTENSION OF SERVICES. THE BASE EXTENSION WILL BE FOR 3 MONTHS WITH THE PERIOD OF PERFORMANCE FROM JANUARY 2, 2017 TO MARCH 31, 2017. THE FUNDING AMOUNT FOR THE PR WILL BE $39,901,219 THAT WILL BE SEPARATED INTO VARIOUS CLINS. CONTRACT #HSTS01-08-D-HRM010 CO: CHARLES STRICKLAND CS: MARY EARNHART PM: MOHAMMED TAHER COR: RENEE ROWLAND

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $38.4 million to LEIDOS INC for work described as: IGF::CT::IGF THE PURPOSE OF TASK ORDER HSTS01-16-J-HRM136 OF THE BASE IDIQ CONTRACT HSTS01-08-D-HRM010 IS TO FUND THE BASE PERIOD OF THE EXTENSION OF SERVICES. THE BASE EXTENSION WILL BE FOR 3 MONTHS WITH THE PERIOD OF PERFORMANCE FROM JANUARY 2, 2017 TO MARCH 31, 2017. THE FUNDI… Key points: 1. Contract focuses on Human Resources Consulting Services, indicating a need for specialized expertise. 2. The award is a delivery order against a larger IDIQ contract, suggesting a pre-vetted vendor. 3. A short 3-month base extension period implies a potential for follow-on work or a transition. 4. The fixed-price award fee contract type aims to incentivize performance while managing costs. 5. The contract is awarded to Leidos Inc., a significant player in government contracting. 6. The geographic location of performance is Virginia.

Value Assessment

Rating: fair

The contract value of $38.4 million for a 3-month extension appears high for HR consulting services, especially when considering the base IDIQ contract's overall value and duration. Benchmarking against similar HR consulting contracts for government agencies of this size and scope would be necessary to determine if this represents a fair price for the services rendered. Without more detailed service descriptions and performance metrics, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, as a delivery order against an existing IDIQ contract, the initial competition for the base IDIQ likely determined the pool of eligible bidders. The specific number of bidders for this particular delivery order is not provided, but the 'full and open' designation suggests a competitive process was followed.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. This approach ensures that the government is not limited to a single provider, potentially driving down costs through market forces.

Public Impact

The Department of Homeland Security, specifically the Transportation Security Administration, is the primary beneficiary of these HR consulting services. The services are intended to support the extension of existing HR functions, likely impacting workforce management and administrative operations. Performance is located in Virginia, suggesting a direct impact on the local workforce and economy in that region. The contract supports the operational needs of a federal agency, ensuring continuity of essential HR functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • The high dollar amount for a short 3-month extension warrants scrutiny to ensure cost-effectiveness.
  • Lack of detailed service breakdown makes it difficult to assess the true value and necessity of the expenditure.
  • Reliance on a single IDIQ contract may limit the agency's ability to explore newer or more specialized HR solutions from a wider market.

Positive Signals

  • Awarded through full and open competition, suggesting a fair and transparent initial selection process.
  • The use of a fixed-price award fee contract structure can align contractor incentives with performance goals.
  • Leidos Inc. is an established government contractor with a track record, potentially indicating reliability.

Sector Analysis

This contract falls within the professional services sector, specifically Human Resources Consulting. The government frequently procures HR services to manage its large workforce, covering areas like recruitment, compensation, benefits, and employee relations. The market for these services is competitive, with numerous large and small businesses offering specialized expertise. This particular award is a task order against a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract, a common vehicle for agencies to procure a range of services over time from pre-qualified vendors.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this particular delivery order. While the base IDIQ contract might have had small business considerations, this specific award does not appear to prioritize small business set-asides. This means that subcontracting opportunities for small businesses may be limited unless Leidos Inc. voluntarily includes them in its execution plan.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal contracting and program management offices. The Transportation Security Administration (TSA) would also have oversight responsibilities. As this is a task order under an IDIQ, the original IDIQ contract likely established some baseline oversight mechanisms. Transparency is generally maintained through contract award databases, but detailed performance reports and specific oversight activities are often internal to the agency.

Related Government Programs

  • Human Resources Management Services
  • Professional Services Contracts
  • Department of Homeland Security Contracts
  • Transportation Security Administration Contracts
  • IDIQ Contract Task Orders

Risk Flags

  • High cost for short duration
  • Lack of detailed service description
  • Potential for uncompetitive pricing on extension

Tags

dhs, transportation-security-administration, human-resources, consulting-services, fixed-price-award-fee, delivery-order, full-and-open-competition, leidos-inc, virginia, professional-services, task-order

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $38.4 million to LEIDOS INC. IGF::CT::IGF THE PURPOSE OF TASK ORDER HSTS01-16-J-HRM136 OF THE BASE IDIQ CONTRACT HSTS01-08-D-HRM010 IS TO FUND THE BASE PERIOD OF THE EXTENSION OF SERVICES. THE BASE EXTENSION WILL BE FOR 3 MONTHS WITH THE PERIOD OF PERFORMANCE FROM JANUARY 2, 2017 TO MARCH 31, 2017. THE FUNDING AMOUNT FOR THE PR WILL BE $39,901,219 THAT WILL BE SEPARATED INTO VARIOUS CLINS. CONTRACT #HSTS01-08-D-HRM010 CO: CHARLES STRICKLAND CS: MARY EARNHART PM: MOHAMMED TAHER COR: RENEE ROWLAND

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 $38.4 million.

What is the period of performance?

Start: 2016-09-28. End: 2017-06-30.

What is the specific nature of the Human Resources Consulting Services being provided under this extension?

The provided data indicates that the purpose of Task Order HSTS01-16-J-HRM136 is to fund the base period of an extension of services for Human Resources Consulting. While the exact nature of these services is not detailed, they are likely related to ongoing HR functions such as workforce planning, personnel management, policy development, or administrative support within the Department of Homeland Security's Transportation Security Administration. The extension is for a 3-month period, suggesting it's either to bridge a gap until a new contract is awarded or to continue essential HR operations. Without further documentation, the specific deliverables and scope of work remain general.

How does the $38.4 million cost for a 3-month extension compare to typical HR consulting rates for federal agencies?

The cost of $38.4 million for a 3-month HR consulting extension appears substantial. To benchmark this effectively, one would need to compare it against similar contracts awarded by DHS or other large federal agencies for comparable HR services. Factors such as the number of personnel involved, the complexity of the HR issues addressed, and the specific expertise required would influence the cost. A preliminary assessment suggests this rate is high, potentially exceeding typical monthly expenditures for HR consulting unless it encompasses a very broad scope or a large team of high-level consultants. Further analysis of the contract's CLIN structure and service details is needed for a definitive comparison.

What is Leidos Inc.'s track record with the Department of Homeland Security and HR consulting services?

Leidos Inc. is a major government contractor with a significant presence across various federal agencies, including the Department of Homeland Security (DHS). They have a broad portfolio of services, often including IT, logistics, and professional services. While specific details on their HR consulting performance within DHS are not provided in this data snippet, their status as a large, established contractor suggests they have experience managing complex government contracts. A deeper dive into past performance evaluations and contract history with DHS would be necessary to fully assess their track record specifically for HR consulting services under similar IDIQ vehicles.

What are the potential risks associated with extending HR consulting services through a delivery order on an existing IDIQ?

One primary risk is the potential for the government to pay a premium compared to re-competing the requirement on the open market, especially if the original IDIQ competition was not recent or if market conditions have changed. There's also a risk of 'scope creep' if the extension is not tightly managed, leading to costs exceeding the initial estimates. Furthermore, relying on an extension might delay the implementation of potentially more innovative or cost-effective solutions that could be identified through a new, targeted procurement. Ensuring the continued relevance and effectiveness of the services provided under the existing contract framework is crucial.

What does the 'Fixed Price Award Fee' contract type imply for performance and cost control?

A Fixed Price Award Fee (FPAF) contract type means that the contractor, Leidos Inc., is paid a fixed price for performing the services. Additionally, they have the potential to earn an 'award fee' based on meeting or exceeding specific performance objectives defined in the contract. This structure aims to incentivize high performance by offering financial rewards beyond the basic contract price. For cost control, the fixed-price component provides a baseline budget. However, the award fee component means the final cost could be higher than the base fixed price if performance targets are met, requiring careful monitoring of performance metrics to ensure value for money.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesHuman 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: $38,424,784

Exercised Options: $38,424,784

Current Obligation: $38,424,725

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

Start Date: 2016-09-28

Current End Date: 2017-06-30

Potential End Date: 2017-06-30 12:00:00

Last Modified: 2023-09-29

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