DHS Awards $33.4M Firm Fixed Price Contract to Leidos for HR Support Services

Contract Overview

Contract Amount: $33,402,595 ($33.4M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-07-01

End Date: 2018-12-31

Contract Duration: 548 days

Daily Burn Rate: $61.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF THE PURPOSE OF CONTRACT HSTS01-17-C-HRM072 IS TO PROVIDE PERSONNEL, PAYROLL AND BENEFITS (PP&B) AND HELP DESK SUPPORT SERVICES TO THE OFFICE OF HUMAN CAPITAL. FOLLOW ON BRIDGE CONTRACT FROM THE OHCACCESS CONTRACT HSTS01-08-D-HRM010. UNDEFINITIZED CONTRACT ACTION UNTIL OTHERWISE STATED.

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22180

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.4 million to LEIDOS, INC. for work described as: IGF::CL::IGF THE PURPOSE OF CONTRACT HSTS01-17-C-HRM072 IS TO PROVIDE PERSONNEL, PAYROLL AND BENEFITS (PP&B) AND HELP DESK SUPPORT SERVICES TO THE OFFICE OF HUMAN CAPITAL. FOLLOW ON BRIDGE CONTRACT FROM THE OHCACCESS CONTRACT HSTS01-08-D-HRM010. UNDEFINITIZED CONTRACT ACTION UNTI… Key points: 1. Contract awarded to Leidos for essential HR, payroll, and benefits support. 2. Follow-on to a previous contract, indicating continued need and established relationship. 3. Significant value suggests a critical function for the Transportation Security Administration. 4. Lack of competition raises questions about potential cost efficiencies and market alternatives.

Value Assessment

Rating: fair

The contract value of $33.4M over 18 months appears substantial for HR support services. Benchmarking against similar contracts for payroll, benefits, and help desk functions is difficult without more detailed service scope, but the firm fixed-price structure aims to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, suggesting a sole-source award. This limits price discovery and potentially reduces the incentive for the contractor to offer the most competitive pricing, as there was no direct comparison with other vendors.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium compared to a scenario where multiple vendors vied for the contract.

Public Impact

Ensures continuity of critical human capital management functions within DHS. Supports TSA personnel with essential payroll, benefits, and HR-related inquiries. Potential for increased costs due to sole-source award impacts taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competition
  • Undefinitized Contract Action (UCA) status implies initial risk

Positive Signals

  • Firm Fixed Price contract type
  • Follow-on contract indicates proven performance

Sector Analysis

This contract falls under Human Resources Consulting Services, a segment within professional services. Spending in this area is crucial for government operations, but benchmarks vary widely based on the specific services provided and the agency's size.

Small Business Impact

The contract was awarded to Leidos, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, missing an opportunity for small business utilization.

Oversight & Accountability

The contract was an undefinitized contract action (UCA) until stated otherwise, which can present oversight challenges. Ensuring proper definitization and monitoring of performance and costs is crucial for accountability.

Related Government Programs

  • Human Resources Consulting Services
  • Department of Homeland Security Contracting
  • Transportation Security Administration Programs

Risk Flags

  • Lack of competition
  • Potential for cost overruns due to sole-source award
  • Limited transparency on justification for sole-source
  • Undefinitized Contract Action (UCA) status at inception

Tags

human-resources-consulting-services, department-of-homeland-security, va, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.4 million to LEIDOS, INC.. IGF::CL::IGF THE PURPOSE OF CONTRACT HSTS01-17-C-HRM072 IS TO PROVIDE PERSONNEL, PAYROLL AND BENEFITS (PP&B) AND HELP DESK SUPPORT SERVICES TO THE OFFICE OF HUMAN CAPITAL. FOLLOW ON BRIDGE CONTRACT FROM THE OHCACCESS CONTRACT HSTS01-08-D-HRM010. UNDEFINITIZED CONTRACT ACTION UNTIL OTHERWISE STATED.

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 $33.4 million.

What is the period of performance?

Start: 2017-07-01. End: 2018-12-31.

What was the justification for the sole-source award, and were any market research efforts conducted to explore competitive options?

The justification for a sole-source award is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required services. Agencies are expected to conduct market research to determine if competition is feasible before resorting to sole-source procurement. Without this information, it's difficult to assess if the government obtained the best value.

What are the specific performance metrics and service level agreements (SLAs) associated with this contract, and how is Leidos' performance being monitored?

The provided data does not detail the specific performance metrics or SLAs. Effective oversight requires clear, measurable objectives and rigorous monitoring of contractor performance against these standards. The agency should have established mechanisms to track service delivery, responsiveness, and overall quality to ensure the government receives the contracted value.

Given this is a follow-on contract, what lessons were learned from the previous OHCACCESS contract (HSTS01-08-D-HRM010) that informed the structure and pricing of this new award?

Lessons learned from the previous contract are not detailed. A thorough review of past performance, cost data, and user feedback should inform the current contract's terms, including pricing, scope, and performance expectations. This ensures that any deficiencies are addressed and successful elements are leveraged, leading to better value and service delivery.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HSTS01-17-Q-HRM072

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $83,238,463

Exercised Options: $33,456,277

Current Obligation: $33,402,595

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline

Start Date: 2017-07-01

Current End Date: 2018-12-31

Potential End Date: 2018-12-31 12:00:00

Last Modified: 2023-09-26

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