Leidos Inc. awarded $19.8M for HAIMS-Labor IT services by the Defense Health Agency

Contract Overview

Contract Amount: $19,845,117 ($19.8M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-09-21

End Date: 2015-07-31

Contract Duration: 1,409 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BASE PERIOD HAIMS-LABOR

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.8 million to LEIDOS, INC. for work described as: BASE PERIOD HAIMS-LABOR Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for Computer Systems Design Services, a critical area for defense IT infrastructure. 3. The base period value of $19.8M falls within a moderate spending range for similar IT services. 4. The contract duration of 1409 days indicates a long-term need for these services. 5. The firm-fixed-price contract type helps manage cost certainty for the government. 6. The award was made to a single contractor, Leidos, Inc., after the competition.

Value Assessment

Rating: good

The $19.8 million base period for HAIMS-Labor IT services appears reasonable when benchmarked against similar large-scale IT support contracts within the Department of Defense. The firm-fixed-price structure provides cost predictability. While specific per-unit labor rates are not detailed here, the overall contract value suggests a competitive outcome given the scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders (implied by 'full and open') typically fosters price discovery and can lead to more competitive pricing for the government. The specific number of bids received is not provided, but the competition type is a positive indicator.

Taxpayer Impact: A competitive award process generally benefits taxpayers by driving down costs and ensuring the government receives the best value for its investment in critical IT services.

Public Impact

The Department of Defense benefits through the provision of essential IT labor services for the HAIMS system. This contract supports the operational readiness and efficiency of military healthcare systems. The services delivered are crucial for maintaining and enhancing the Health Artifact and Imaging Management System. The geographic impact is primarily within the Defense Health Agency's operational footprint, supporting military personnel and their families.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for vendor lock-in if follow-on work is not competitively bid.
  • Reliance on a single contractor for critical IT functions could pose a risk if performance issues arise.

Positive Signals

  • Awarded through full and open competition, indicating a robust selection process.
  • Firm-fixed-price contract type provides budget certainty.
  • Long contract duration suggests a stable and ongoing need, potentially leading to contractor efficiency.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT industry supporting government operations. The Defense Health Agency's spending on such services is substantial, reflecting the critical role of IT in modern military healthcare. Benchmarks for similar contracts often range from tens to hundreds of millions of dollars over their lifecycle, depending on complexity and scope.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to Leidos, Inc., it is unlikely to directly benefit small businesses through prime contract awards. However, there may be opportunities for small businesses to participate as subcontractors, depending on Leidos's subcontracting plan and needs.

Oversight & Accountability

The contract is managed by the Defense Health Agency, a component of the Department of Defense. Oversight would typically involve contract officers, program managers, and potentially the DoD Inspector General for audits and investigations. Transparency is facilitated through contract award databases like FPDS. The firm-fixed-price nature of the contract also provides a degree of financial oversight.

Related Government Programs

  • Defense Health Information Management System (DHIMS)
  • Military Health System (MHS) IT Support
  • DoD Electronic Health Records (EHR) Systems
  • Federal Health IT Services

Risk Flags

  • Potential for performance degradation if contractor faces unforeseen cost pressures under FFP.
  • Reliance on a single vendor for critical IT functions requires robust oversight.

Tags

it-services, computer-systems-design, defense, department-of-defense, defense-health-agency, firm-fixed-price, full-and-open-competition, large-contract, healthcare-it, virginia

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.8 million to LEIDOS, INC.. BASE PERIOD HAIMS-LABOR

Who is the contractor on this award?

The obligated recipient is LEIDOS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $19.8 million.

What is the period of performance?

Start: 2011-09-21. End: 2015-07-31.

What is the historical spending trend for HAIMS-Labor IT services with Leidos, Inc. by the Defense Health Agency?

The provided data reflects a single base period award of $19.8 million to Leidos, Inc. for HAIMS-Labor IT services, spanning from September 21, 2011, to July 31, 2015. This specific award represents a discrete period of performance and associated funding. To understand the broader historical spending trend, one would need to examine all prior and subsequent contracts awarded for HAIMS-Labor IT services, not just to Leidos, but potentially to other contractors as well. Analyzing the total obligated amounts, contract modifications, and duration of all related contracts over several fiscal years would be necessary to establish a comprehensive spending trend for this specific service category within the Defense Health Agency.

How does the value of this $19.8M contract compare to other IT services contracts awarded by the Defense Health Agency?

The $19.8 million base period value for HAIMS-Labor IT services is a moderate figure when compared to the broader spectrum of IT contracts within the Defense Health Agency (DHA). The DHA manages a vast and complex IT infrastructure, often awarding multi-year, multi-million dollar contracts for enterprise-wide solutions, electronic health records, cybersecurity, and large-scale system development. While $19.8 million is a significant sum, it is not uncommon for specific IT labor support or system design services. Larger contracts for comprehensive IT modernization or sustainment efforts can easily reach hundreds of millions or even billions of dollars over their lifespan. Therefore, this contract's value suggests a focused scope of work rather than an enterprise-level overhaul.

What are the key performance indicators (KPIs) typically associated with Computer Systems Design Services contracts like this one?

Key performance indicators (KPIs) for Computer Systems Design Services contracts often revolve around system availability, performance, security, and user satisfaction. For a contract like HAIMS-Labor, specific KPIs might include system uptime percentages (e.g., 99.9% availability), response times for critical functions, successful implementation of system updates or patches within defined windows, adherence to security protocols and data integrity standards, and timely resolution of reported system issues or bugs. User feedback surveys and the successful completion of defined project milestones or deliverables within scope and schedule are also common metrics. The firm-fixed-price nature of this contract implies that the contractor is incentivized to meet these performance standards efficiently.

What is the potential risk associated with the firm-fixed-price (FFP) contract type for this IT service?

The primary risk associated with a Firm-Fixed-Price (FFP) contract type, especially for IT services, is that the contractor may cut corners on quality or scope to maintain profitability if unforeseen technical challenges or cost overruns occur. While FFP provides cost certainty for the government, it places the cost risk on the contractor. If the contractor underestimates the effort required or encounters significant technical hurdles not anticipated during the bidding process, they bear the financial burden. This could potentially lead to performance issues if the contractor struggles to deliver within the fixed price. However, for well-defined IT services with clear requirements, FFP is often preferred for its budget predictability.

How does the 'Computer Systems Design Services' NAICS code (541512) typically relate to defense healthcare IT infrastructure?

The NAICS code 541512, 'Computer Systems Design Services,' is highly relevant to defense healthcare IT infrastructure. This code encompasses establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. For the Defense Health Agency (DHA), this translates to designing, developing, and integrating complex systems like the Health Artifact and Imaging Management System (HAIMS). These services are crucial for ensuring that disparate healthcare IT components within the Military Health System (MHS) can communicate effectively, manage vast amounts of sensitive patient data securely, and support clinical decision-making. It involves everything from initial system architecture to ensuring interoperability and compliance with stringent healthcare and defense regulations.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 11951 FREEDOM DR, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $19,911,373

Exercised Options: $19,845,117

Current Obligation: $19,845,117

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010046

IDV Type: IDC

Timeline

Start Date: 2011-09-21

Current End Date: 2015-07-31

Potential End Date: 2015-07-31 00:00:00

Last Modified: 2023-07-12

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