DoD's $15.5M National Quality Management Program contract awarded to Leidos Healthcare Inc

Contract Overview

Contract Amount: $15,509,198 ($15.5M)

Contractor: Leidos Federal Healthcare, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-11-20

End Date: 2006-02-02

Contract Duration: 805 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NATIONAL QUALITY MANAGEMENT PROGRAM

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $15.5 million to LEIDOS FEDERAL HEALTHCARE, INC. for work described as: NATIONAL QUALITY MANAGEMENT PROGRAM Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost overruns. 3. Leidos Federal Healthcare, Inc. is the sole awardee, indicating a specific capability or market position. 4. The contract duration of 805 days suggests a medium-term project. 5. The North American Industry Classification System (NAICS) code 541611 points to administrative and management consulting services. 6. The contract was awarded by the Defense Contract Management Agency, highlighting its role in defense operations.

Value Assessment

Rating: fair

Benchmarking the value of this $15.5 million contract is challenging without specific performance metrics or comparable contracts. The Cost Plus Fixed Fee (CPFF) contract type, while common, carries inherent risks of cost escalation if not managed tightly. The fixed fee component provides some cost certainty for the contractor, but the government bears the risk of actual costs incurred. Further analysis would require understanding the scope of 'National Quality Management Program' services and comparing Leidos's pricing against industry standards for similar consulting engagements.

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 2 bids suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring fair market value, the low number of bidders could imply a specialized niche or limited number of qualified contractors.

Taxpayer Impact: A competitive award process, even with a limited number of bidders, is generally favorable for taxpayers as it aims to secure the best possible price and quality. However, the ultimate value for taxpayers depends on the effectiveness of the competition and the negotiated terms.

Public Impact

The primary beneficiaries are likely the Department of Defense and its various branches, which will receive enhanced quality management services. The services delivered are expected to improve administrative and general management consulting within the defense sector. The geographic impact is primarily within Maryland (MD), where the contract was awarded, but the services may extend to broader defense operations. Workforce implications could include the need for specialized quality management professionals within the defense contracting sphere.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
Limited number of bidders (2) may indicate a lack of robust competition, potentially impacting price.
The specific nature of 'National Quality Management Program' requires detailed understanding to assess true value.
Contract duration of 805 days necessitates ongoing oversight to ensure objectives are met within budget.

Positive Signals

Awarded through full and open competition, ensuring a broad initial solicitation.
The contract is managed by the Defense Contract Management Agency, suggesting established oversight processes.
Leidos Federal Healthcare, Inc. is a known entity in the federal healthcare and defense contracting space.
The contract addresses quality management, a critical function for defense operations.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. The federal government, particularly the Department of Defense, is a significant consumer of such services to manage complex operations, improve efficiency, and ensure compliance. Benchmarking would involve comparing the per-diem rates or total contract value against other similar management consulting contracts awarded to large federal contractors within the defense industry.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information about subcontracting plans for small businesses. Given the awardee is Leidos Federal Healthcare, Inc., a large corporation, it is unlikely that small business participation was a primary focus unless mandated through specific subcontracting goals not detailed here.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contract performance and ensuring compliance. The CPFF structure requires diligent oversight of incurred costs and justification for the fixed fee. Transparency would be enhanced by public reporting of performance metrics and cost breakdowns, though such details are often sensitive within defense contracts. Inspector General jurisdiction would typically apply to investigate fraud, waste, or abuse.

Related Government Programs

Defense Contract Management Agency Operations
Department of Defense Quality Assurance Programs
Federal Healthcare Consulting Services
Administrative Management Consulting Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Limited number of bidders (2) may suggest potential for reduced competition.
Contract performance details and achieved outcomes are not publicly available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.5 million to LEIDOS FEDERAL HEALTHCARE, INC.. NATIONAL QUALITY MANAGEMENT PROGRAM

Who is the contractor on this award?

The obligated recipient is LEIDOS FEDERAL HEALTHCARE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $15.5 million.

What is the period of performance?

Start: 2003-11-20. End: 2006-02-02.

What specific quality management improvements were expected or achieved under this contract?

The provided data does not detail the specific quality management improvements expected or achieved. The contract, identified under NAICS code 541611 (Administrative Management and General Management Consulting Services), suggests the scope likely involved process analysis, strategic planning, and implementation of quality frameworks within the Department of Defense. Without access to performance reports, contract modifications, or final delivery documentation, it's impossible to quantify the precise improvements. However, typical objectives for such contracts include enhancing operational efficiency, reducing waste, improving compliance with standards, and boosting overall mission effectiveness within the defense apparatus.

How does the $15.5 million cost compare to similar quality management contracts within the DoD?

Comparing the $15.5 million cost requires identifying comparable contracts based on scope, duration, and complexity. This contract, awarded in 2003 for a duration of 805 days (approx. 2.2 years), focused on 'National Quality Management Program' services under a CPFF structure. To benchmark effectively, one would need to analyze other DoD contracts for management consulting services related to quality assurance or program management awarded around the same period or in subsequent years, considering factors like the number of personnel involved, specific deliverables, and the agency or sub-agency receiving the services. Without a detailed database of comparable contracts and their specific performance outcomes, a precise value-for-money assessment relative to peers is difficult.

What is the track record of Leidos Federal Healthcare, Inc. in managing similar DoD contracts?

Leidos Federal Healthcare, Inc. (and its predecessor entities) has a substantial track record of performing contracts for the Department of Defense and other federal agencies, often in the healthcare and IT sectors. Their experience typically encompasses a wide range of services, including program management, systems integration, and administrative support. For contracts similar to this one, involving quality management consulting, Leidos would leverage its established project management methodologies and domain expertise. A thorough assessment would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the scale and complexity of previously managed programs to gauge their reliability and effectiveness in similar engagements.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for quality management services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government bears the risk of cost overruns. While the contractor is guaranteed a fixed fee, they are incentivized to incur costs to perform the work. If the actual costs exceed initial estimates significantly, the total expenditure for the government can be higher than anticipated. For quality management services, this could mean that the contractor might invest more resources than strictly necessary, or that the definition of 'costs' becomes a point of contention. Effective oversight by the contracting agency is crucial to scrutinize incurred costs, ensure efficiency, and prevent unnecessary spending, thereby mitigating the inherent risks of the CPFF structure.

How has federal spending on administrative management and general management consulting services evolved since this contract was awarded?

Since this contract was awarded in 2003, federal spending on administrative management and general management consulting services (NAICS 541611) has generally seen fluctuations but has remained a significant category. Factors influencing spending include evolving government priorities, budget cycles, and the increasing complexity of federal programs requiring specialized expertise. The trend has often been towards outsourcing specific functions to leverage external knowledge and efficiency. While this specific $15.5 million contract represents a snapshot, broader analyses of federal procurement data would reveal overall growth or contraction in this sector, influenced by economic conditions, national security needs, and policy shifts towards or away from contracting out government functions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: MEDICAL SERVICES › OTHER MEDICAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 1 CURIE COURT, ROCKVILLE, MD, 20850

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,509,198

Exercised Options: $15,509,198

Current Obligation: $15,509,198

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DASW0100D3017

IDV Type: IDC

Timeline