Leidos Aspen Systems Corp awarded $19.9M contract for NIH program management and support services

Contract Overview

Contract Amount: $19,903,279 ($19.9M)

Contractor: Leidos Aspen Systems Corp

Awarding Agency: Department of Health and Human Services

Start Date: 2003-04-15

End Date: 2008-04-14

Contract Duration: 1,826 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROGRAM MANAGEMENT/SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.9 million to LEIDOS ASPEN SYSTEMS CORP for work described as: PROGRAM MANAGEMENT/SUPPORT SERVICES Key points: 1. Contract awarded to a single entity, Leidos Aspen Systems Corp, for comprehensive program management and support. 2. The contract spans over five years, indicating a long-term need for these services. 3. Services provided are crucial for the operational efficiency of the National Institutes of Health (NIH). 4. The contract type, Cost Plus Fixed Fee, suggests a need for flexibility in scope while maintaining cost control. 5. The award was made under full and open competition, implying a robust bidding process. 6. The geographic location of the contractor is Maryland, aligning with NIH's operational base.

Value Assessment

Rating: good

The contract value of $19.9 million over five years for program management and support services at NIH appears reasonable. While specific benchmarks for this exact service mix are difficult to ascertain without more granular data, the fixed fee component suggests a degree of cost predictability. Comparing this to similar large-scale program support contracts within federal health agencies would provide a more precise value-for-money assessment. The duration of the contract also suggests a stable and potentially cost-effective relationship.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The fact that Leidos Aspen Systems Corp was the selected contractor suggests they offered the best value proposition among the bidders. The level of competition, while not explicitly detailed in terms of the number of bids received, is generally positive for price discovery and ensuring a competitive market.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

The primary beneficiaries are the National Institutes of Health, which receive essential support for its extensive research and administrative programs. The services delivered likely encompass a wide range of program management functions, including planning, execution, monitoring, and reporting. The geographic impact is concentrated in Maryland, where NIH's primary operations are located, supporting local federal infrastructure. The contract supports a workforce involved in program management and administrative functions, contributing to federal employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term nature of the contract.
Cost overruns could occur if the fixed fee does not adequately account for unforeseen project complexities.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contract duration indicates a stable and potentially efficient service delivery model.
Contractor is an established entity, likely possessing relevant expertise.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on program management and support for a major federal health research agency. The market for such services is competitive, with numerous large and small businesses offering specialized expertise. The NIH represents a significant client within this sector, and contracts of this nature are common for supporting its vast research endeavors. Benchmarks for similar program support contracts within federal agencies often range from millions to tens of millions of dollars annually, depending on the scope and complexity.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, Leidos Aspen Systems Corp, may engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their own subcontracting plans and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the National Institutes of Health. Performance monitoring, adherence to the contract terms, and financial accountability are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Specific Inspector General jurisdiction would depend on the agency's internal policies and the nature of any potential fraud, waste, or abuse.

Related Government Programs

NIH Research Support Contracts
Federal Program Management Services
Health Agency Administrative Support
IT and Management Consulting Services

Risk Flags

Contract duration exceeds 5 years
Cost Plus Fixed Fee contract type
Single award to one contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.9 million to LEIDOS ASPEN SYSTEMS CORP. PROGRAM MANAGEMENT/SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is LEIDOS ASPEN SYSTEMS CORP.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $19.9 million.

What is the period of performance?

Start: 2003-04-15. End: 2008-04-14.

What specific program management and support services are included under this contract?

While the data indicates 'PROGRAM MANAGEMENT/SUPPORT SERVICES,' the precise breakdown of services is not detailed. Typically, such contracts for the National Institutes of Health (NIH) would encompass a broad range of activities. These could include strategic planning, project management, financial administration, budget tracking, resource allocation, performance monitoring, data analysis, reporting, coordination of inter-agency or intra-agency initiatives, and potentially logistical support for research programs. The Cost Plus Fixed Fee (CPFF) contract type suggests that the scope might have some flexibility, allowing for adjustments in services as NIH's needs evolve over the contract's five-year duration. Detailed statements of work (SOW) within the contract documents would provide a comprehensive list of deliverables and required tasks.

How does the $19.9 million contract value compare to similar NIH program support contracts?

Comparing the $19.9 million total contract value for Leidos Aspen Systems Corp to similar NIH program support contracts requires access to a broader dataset of federal procurements. However, for a five-year duration, this averages approximately $3.98 million per year. This figure falls within a common range for significant program management and support contracts awarded by large federal agencies like NIH. Contracts for specialized research support, IT management, or large-scale administrative functions can easily reach or exceed this value. Without specific details on the scope of services and the number of personnel involved, a precise benchmark is challenging. However, given NIH's substantial research portfolio and operational complexity, this level of investment for comprehensive support is not unusual and suggests a substantial scope of work.

What is the track record of Leidos Aspen Systems Corp in performing similar federal contracts?

Leidos Aspen Systems Corp, as part of the larger Leidos organization, has a significant track record in providing a wide array of services to federal agencies, including program management, IT support, and scientific services. While specific performance data for this exact contract (awarded in 2003 and ending in 2008) is not detailed here, Leidos as a whole is a major government contractor with extensive experience. Their history includes numerous large-scale contracts across defense, intelligence, health, and civil sectors. Past performance evaluations, available through federal procurement databases like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS), would offer more granular insights into their success rates, quality of work, and adherence to schedules and budgets on previous engagements. Generally, companies of Leidos's size and tenure are expected to have robust processes for contract execution.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The Cost Plus Fixed Fee (CPFF) contract type, used here, presents specific risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the fixed fee is earned regardless of the final cost incurred (provided it remains within the estimated cost ceiling). This can lead to cost overruns if the initial cost estimate is inaccurate or if the contractor's efficiency is low. For the contractor, the risk lies in underestimating the effort required, which could lead to the actual costs exceeding the estimated costs, thereby reducing their profit margin (the fixed fee). Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for the government. Regular audits and reviews of expenditures are essential.

How does the 'full and open competition' award mechanism impact the value received by taxpayers?

Awarding this contract through 'full and open competition' is generally beneficial for taxpayers. This process ensures that all responsible sources are permitted to submit a bid, fostering a competitive environment. Competition typically drives down prices, encourages innovation, and leads to higher quality services as contractors vie for the award. It allows the government to select the offer that represents the best overall value, considering factors beyond just price, such as technical approach, past performance, and management capability. This contrasts with sole-source or limited competition awards, which may result in higher prices and fewer choices. Therefore, the use of full and open competition suggests a deliberate effort to maximize the value and efficiency of taxpayer spending on these program management and support services.

What is the historical spending trend for program management and support services at NIH?

Analyzing the historical spending trend for program management and support services at the National Institutes of Health (NIH) requires access to multi-year procurement data. This specific contract, awarded in 2003 for $19.9 million over five years, represents a snapshot from that period. Generally, NIH's spending on support services has been substantial and has likely grown over time, reflecting the expansion of its research initiatives and the increasing complexity of managing large-scale scientific programs. Factors such as increased federal funding for biomedical research, new research priorities, and the need for specialized expertise contribute to this trend. Examining annual reports or budget justifications from NIH and its parent agency, the Department of Health and Human Services (HHS), would provide broader insights into overall spending patterns for administrative and program support functions.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 2277 RESEARCH BLVD, ROCKVILLE, MD, 08

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

Financial Breakdown

Contract Ceiling: $222,083,076

Exercised Options: $161,982,876

Current Obligation: $19,903,279

Timeline