DoD's $116M Nurse Advice Line Contract Awarded to Leidos Raises Questions on Value and Competition

Contract Overview

Contract Amount: $116,149,657 ($116.1M)

Contractor: Leidos, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-09-26

End Date: 2018-03-31

Contract Duration: 1,647 days

Daily Burn Rate: $70.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: CONUS NURSE ADVICE LINE - TRANSITION-IN

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $116.1 million to LEIDOS, INC. for work described as: CONUS NURSE ADVICE LINE - TRANSITION-IN Key points: 1. The contract awarded to Leidos for the CONUS Nurse Advice Line represents a significant investment in healthcare support services. 2. Leidos, a major defense contractor, secured this award, highlighting the competitive landscape for large-scale government IT and professional services. 3. The firm fixed-price contract structure aims to control costs, but the overall value and effectiveness require scrutiny. 4. The 'All Other Professional, Scientific, and Technical Services' category is broad, making direct sector benchmarks challenging.

Value Assessment

Rating: fair

The $116 million contract value over its period of performance suggests a substantial investment. Without detailed performance metrics and comparable contract data, assessing the value for money against industry standards for similar nurse advice line services is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, the specific pricing strategies and the number of bids received are not detailed, making it hard to assess the extent of price discovery and potential savings.

Taxpayer Impact: While competition was intended to ensure fair pricing, the final cost to taxpayers depends on the efficiency and effectiveness of the services provided by Leidos.

Public Impact

Ensures 24/7 access to healthcare advice for military personnel and their families. Supports the Defense Health Agency in managing healthcare inquiries and reducing unnecessary clinic visits. Potential for improved patient outcomes and satisfaction through timely medical guidance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of detailed performance metrics to assess value.
  • Limited insight into the competitive bidding process beyond 'full and open'.
  • Broad service category makes direct cost comparisons difficult.

Positive Signals

  • Contract awarded through full and open competition.
  • Firm fixed-price contract aims for cost certainty.
  • Provides essential healthcare support services.

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically supporting healthcare operations within the Department of Defense. Benchmarking requires comparison with other large-scale healthcare support contracts or IT service contracts for similar functions.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as Leidos is a large corporation. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract's duration and value necessitate robust oversight from the Defense Health Agency to ensure service delivery meets requirements and taxpayer funds are used efficiently. Performance reviews and audits would be critical.

Related Government Programs

  • All Other Professional, Scientific, and Technical Services
  • Department of Defense Contracting
  • Defense Health Agency Programs

Risk Flags

  • Lack of detailed performance data.
  • Limited transparency on competitive pricing analysis.
  • Broad service category hinders direct benchmarking.
  • No indication of small business subcontracting.

Tags

all-other-professional-scientific-and-te, department-of-defense, va, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $116.1 million to LEIDOS, INC.. CONUS NURSE ADVICE LINE - TRANSITION-IN

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 $116.1 million.

What is the period of performance?

Start: 2013-09-26. End: 2018-03-31.

What specific performance metrics were used to evaluate Leidos's success in delivering the CONUS Nurse Advice Line services, and how do these align with the contract's objectives?

The provided data does not detail specific performance metrics. A thorough review would require access to contract performance reports, quality assurance surveillance plans, and any associated award-fee evaluations. Understanding these metrics is crucial for assessing whether the service met its objectives of providing timely and accurate medical advice, improving patient access, and potentially reducing unnecessary healthcare utilization.

How did the pricing proposed by Leidos compare to other bids received during the full and open competition, and what factors contributed to Leidos being selected?

The data indicates 'full and open competition' but does not provide details on the number of bids received or a comparative analysis of their pricing. To assess price reasonableness, one would need to examine the competitive range, the evaluation criteria used (e.g., technical approach, past performance, price), and potentially conduct a price reasonableness analysis against independent government cost estimates or market research data.

What is the estimated taxpayer impact in terms of cost savings or improved healthcare efficiency achieved through this Nurse Advice Line service compared to alternative methods of healthcare access?

Quantifying the precise taxpayer impact requires data on the volume of calls handled, the types of advice given, and the downstream effects on healthcare utilization (e.g., reduced ER visits, appropriate clinic referrals). Without this, it's difficult to definitively state cost savings. However, such services are generally intended to improve efficiency by directing patients to the most appropriate level of care, potentially reducing more expensive interventions.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesAll Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HT001112R0039

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 1710 SAIC DR STE B, MC LEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $180,983,893

Exercised Options: $116,149,657

Current Obligation: $116,149,657

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2013-09-26

Current End Date: 2018-03-31

Potential End Date: 2018-09-30 00:00:00

Last Modified: 2023-02-13

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