Leidos Awarded $61.5M for TSA Data Center Support, Lacking Competition
Contract Overview
Contract Amount: $61,473,861 ($61.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2017-06-30
End Date: 2019-06-30
Contract Duration: 730 days
Daily Burn Rate: $84.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF THE PURPOSE OF CONTRACT HSTS01-17-C-HRM085 IS TO PROVIDE DATA CENTER SUPPORT SERVICES TO THE TRANSPORTATION SECURITY ADMINISTRATION, OFFICE OF HUMAN CAPITAL.
Place of Performance
Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20879
State: Maryland Government Spending
Plain-Language Summary
Department of Homeland Security obligated $61.5 million to LEIDOS, INC. for work described as: IGF::OT::IGF THE PURPOSE OF CONTRACT HSTS01-17-C-HRM085 IS TO PROVIDE DATA CENTER SUPPORT SERVICES TO THE TRANSPORTATION SECURITY ADMINISTRATION, OFFICE OF HUMAN CAPITAL. Key points: 1. Contract awarded to Leidos, Inc. for data center support services. 2. Significant spending of $61.5 million over two years. 3. No competition was utilized in the award process. 4. Services fall under Computing Infrastructure Providers, Data Processing, and Web Hosting.
Value Assessment
Rating: fair
The contract value of $61.5 million for two years of data center support appears high given the lack of competition and the nature of the services. Benchmarking against similar contracts for computing infrastructure and data processing is difficult without more detailed service descriptions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government as competitive pressures are absent.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential data center support services.
Public Impact
TSA relies on these services for critical human capital data management. Potential for increased costs due to sole-source award impacts taxpayer funds. Lack of transparency in the procurement process raises accountability questions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited transparency
Positive Signals
- Definitive contract provides clear terms
- Firm fixed price contract limits cost overrun risk
Sector Analysis
The IT services sector, particularly data center support, is highly competitive. However, this contract was awarded without competition, bypassing potential cost savings and innovation that competition could bring. Spending benchmarks for similar services vary widely based on scope and scale.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature of the award likely precluded opportunities for small business participation.
Oversight & Accountability
The sole-source award warrants further oversight to ensure the government received fair value. Accountability could be strengthened by requiring justification for the lack of competition and exploring future competitive opportunities.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Sole-source award limits competition
- Potential for inflated pricing
- Lack of transparency in procurement
- No small business participation noted
Tags
computing-infrastructure-providers-data-, department-of-homeland-security, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $61.5 million to LEIDOS, INC.. IGF::OT::IGF THE PURPOSE OF CONTRACT HSTS01-17-C-HRM085 IS TO PROVIDE DATA CENTER SUPPORT SERVICES TO THE TRANSPORTATION SECURITY ADMINISTRATION, OFFICE OF HUMAN CAPITAL.
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 $61.5 million.
What is the period of performance?
Start: 2017-06-30. End: 2019-06-30.
What was the justification for not competing this contract, and were alternative solutions explored?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the contract file to understand the specific justification, such as urgency, unique capabilities, or a prior existing relationship. Without this information, it's impossible to assess if alternative solutions were adequately explored or if this was the most cost-effective approach for the TSA.
How does the per-unit cost of these data center services compare to industry benchmarks, given the lack of competition?
Benchmarking the per-unit cost is challenging without a detailed breakdown of services and specific metrics. However, the absence of competition typically leads to higher prices than in a competitive environment. The government should have conducted a price analysis to ensure the negotiated price was fair and reasonable, even in a sole-source scenario.
What is the potential risk to TSA's human capital operations if these services are disrupted?
Disruption to these data center support services could significantly impact TSA's human capital operations, potentially affecting payroll, benefits administration, personnel records, and recruitment processes. The reliance on a single provider for critical infrastructure increases the risk associated with service outages or performance issues.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HSTS01-17-Q-HRM085
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
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: $62,034,117
Exercised Options: $61,473,861
Current Obligation: $61,473,861
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $32,156
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: YES
Timeline
Start Date: 2017-06-30
Current End Date: 2019-06-30
Potential End Date: 2019-06-30 12:06:00
Last Modified: 2021-09-30
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