NIH awards $22M contract for data and other services to Leidos Aspen Systems Corp

Contract Overview

Contract Amount: $22,008,287 ($22.0M)

Contractor: Leidos Aspen Systems Corp

Awarding Agency: Department of Health and Human Services

Start Date: 2001-05-15

End Date: 2006-05-14

Contract Duration: 1,825 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: AUTO NEWS, DATA&OTHER SVCS

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.0 million to LEIDOS ASPEN SYSTEMS CORP for work described as: AUTO NEWS, DATA&OTHER SVCS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. The duration of 1825 days (5 years) indicates a long-term need for these services. 4. The contract was awarded to Leidos Aspen Systems Corp., a significant player in government contracting. 5. The services encompass 'AUTO NEWS, DATA & OTHER SVCS', a broad category requiring further definition for precise value assessment. 6. The contract's value of over $22 million over five years warrants scrutiny for cost-effectiveness. 7. The lack of specific Product Service Code (PSC) or North American Industry Classification System (NAICS) codes makes detailed sector benchmarking challenging.

Value Assessment

Rating: fair

The contract value of approximately $22 million over five years averages to about $4.4 million annually. Without specific details on the 'AUTO NEWS, DATA & OTHER SVCS' provided, it is difficult to benchmark against similar contracts. The Cost Plus Fixed Fee (CPFF) contract type means the government reimburses costs plus a fixed fee, which can lead to higher overall costs if not managed carefully. However, the fixed fee component does provide some incentive for the contractor to control costs to maximize their profit margin.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION', indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition. While full and open competition is generally preferred for ensuring fair pricing and access to a wide range of capabilities, the specific number of bidders (two) might suggest that the market for these particular services is not as broad as it could be, or that other factors limited participation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. However, with only two bidders, the potential for significant price reductions may have been limited compared to a scenario with numerous competitive offers.

Public Impact

The National Institutes of Health (NIH) is the primary beneficiary, receiving essential data and other services. The services likely support critical research, administrative, or operational functions within the NIH. The contract's impact is primarily within Maryland, where the contractor is located. The contract supports jobs within Leidos Aspen Systems Corp., contributing to the federal contracting workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not closely monitored.
The broad nature of 'AUTO NEWS, DATA & OTHER SVCS' makes it difficult to assess if the full scope of services is being efficiently utilized.
Limited competition (two bidders) may have restricted the potential for achieving the lowest possible price.

Positive Signals

Awarded through full and open competition, maximizing the pool of potential offerors.
The fixed fee component of the contract provides some incentive for cost control by the contractor.
The long-term nature of the contract (5 years) suggests a stable and ongoing requirement, allowing for potential economies of scale.

Sector Analysis

This contract falls within the broad category of professional, scientific, and technical services, specifically related to data management and information services. The federal IT and data services market is substantial, with agencies increasingly relying on external contractors for specialized expertise. Benchmarking is difficult without a more precise service code, but spending in this area is generally high across government, driven by digital transformation initiatives and the need for data analytics.

Small Business Impact

There is no indication that this contract included small business set-asides. The contractor, Leidos Aspen Systems Corp., is a large business. Therefore, the direct impact on small businesses through this specific award is likely minimal, unless Leidos Aspen Systems Corp. engages in significant subcontracting with small businesses, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers at the National Institutes of Health (NIH). As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to ensure that costs are reasonable and allocable, and that the fixed fee is earned appropriately. Transparency is generally maintained through contract reporting mechanisms, but specific details on ongoing oversight activities are not provided.

Related Government Programs

NIH Data Management Services
Federal IT Services Contracts
Government Data Analytics Contracts
Leidos Contracts with HHS

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring.
Broad service description ('AUTO NEWS, DATA & OTHER SVCS') lacks specificity.
Limited number of bidders (two) may impact price competition.
Long contract duration necessitates ongoing performance management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.0 million to LEIDOS ASPEN SYSTEMS CORP. AUTO NEWS, DATA&OTHER SVCS

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 $22.0 million.

What is the period of performance?

Start: 2001-05-15. End: 2006-05-14.

What specific types of 'AUTO NEWS, DATA & OTHER SVCS' are being provided under this contract?

The provided data is limited and does not specify the exact nature of the 'AUTO NEWS, DATA & OTHER SVCS'. This broad categorization could encompass a wide range of services, from news aggregation and media monitoring to complex data analysis, database management, or even software development related to data. To fully assess the value and performance, a detailed breakdown of the deliverables and services rendered is necessary. Without this, it's challenging to determine if the services align with NIH's strategic objectives or if there's potential for scope creep or underutilization.

How does the $22 million contract value compare to similar data services contracts at NIH or other agencies?

Benchmarking this $22 million, five-year contract requires more specific service details. However, for context, federal spending on IT and data services is in the tens of billions annually. Contracts for data analytics, management, and related services can range from a few million for specialized tasks to hundreds of millions for large-scale enterprise solutions. Given the duration and the awarding agency (NIH), $4.4 million annually for comprehensive data services appears to be within a reasonable range, assuming the scope is substantial. However, a direct comparison is hampered by the generic service description.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for data services?

The primary risk with CPFF contracts is that the contractor may not have a strong incentive to control costs beyond what is necessary to earn their fixed fee. If the government's cost accounting and oversight are not robust, costs can escalate. For data services, risks also include potential for scope creep if requirements are not clearly defined, data security vulnerabilities if sensitive information is handled, and contractor performance issues if the technical expertise is lacking. The fixed fee provides some incentive for efficiency, but diligent monitoring of costs and performance is paramount.

What is the track record of Leidos Aspen Systems Corp. in delivering similar data and IT services to the federal government?

Leidos is a major federal contractor with a significant history of providing a wide array of IT, data, and professional services across various government agencies. While 'Leidos Aspen Systems Corp.' might be a specific subsidiary or division, the parent company's extensive experience suggests a generally capable provider. However, a thorough assessment would involve reviewing past performance evaluations, any past performance issues or disputes, and the specific success metrics achieved on comparable contracts. Without access to detailed past performance data, it's assumed they possess the necessary qualifications based on their market presence.

How has federal spending on data and IT services evolved over the past decade, and how does this contract fit into that trend?

Federal spending on data and IT services has seen a consistent upward trend over the past decade, driven by modernization efforts, cybersecurity needs, cloud adoption, and the increasing importance of data analytics. Agencies are shifting towards more agile development, data-driven decision-making, and integrated IT solutions. This $22 million contract, awarded in 2001 and spanning five years, represents a typical investment in essential data services during that period. It aligns with the broader government-wide push to leverage data for improved operations and research, as exemplified by NIH's mission.

What are the potential implications of having only two bidders for this contract?

Having only two bidders in a 'full and open competition' scenario can have several implications. It suggests that the market for these specific services might be concentrated among a few large players, or that the barriers to entry (e.g., technical requirements, security clearances, past performance) are high. For taxpayers, it could mean less aggressive pricing than might be achieved with more competition. It also places greater emphasis on the evaluation process to ensure the selected contractor offers the best value, as there are fewer alternatives to compare against. The government must ensure the solicitation was structured to encourage broader participation.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 2277 RESEARCH BLVD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $13,301,798

Exercised Options: $4,470,798

Current Obligation: $22,008,287

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline