Leidos SMS Inc. awarded $372M VA contract for IT infrastructure operations, a significant investment in system support

Contract Overview

Contract Amount: $372,238,646 ($372.2M)

Contractor: Leidos SMS Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-03-07

End Date: 2021-12-31

Contract Duration: 1,395 days

Daily Burn Rate: $266.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF INFRASTRUCTURE OPERATIONS SERVICES SUPPORT

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78772

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $372.2 million to LEIDOS SMS INC for work described as: IGF::OT::IGF INFRASTRUCTURE OPERATIONS SERVICES SUPPORT Key points: 1. The contract represents a substantial investment in maintaining critical IT infrastructure for the VA. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and optimal service delivery. 3. Performance context is key to understanding the effectiveness of IT operations support. 4. Sector positioning highlights the VA's reliance on specialized IT services for its mission. 5. Risk indicators may include system vulnerabilities, data security, and operational uptime.

Value Assessment

Rating: good

The contract value of $372 million over its period of performance suggests a significant scale of operations. Benchmarking against similar IT infrastructure support contracts within federal agencies is necessary for a precise value-for-money assessment. However, the duration and scope indicate a substantial commitment, implying a need for consistent and reliable service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to drive better pricing and service quality. The presence of 5 bidders suggests a healthy level of interest and competition for this type of IT support service.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of providers to compete, potentially leading to lower costs and higher quality services for the government.

Public Impact

Veterans and VA staff benefit from reliable and secure IT systems. Essential IT infrastructure operations and maintenance services are delivered. The geographic impact is nationwide, supporting VA facilities across the country. Workforce implications include the potential for IT specialists employed by the contractor and subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed carefully.
Ensuring consistent service quality across all VA locations.
Managing the transition of services if contract is recompeted.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Long-term contract provides stability for service delivery.
Focus on critical IT infrastructure operations is essential for VA's mission.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The federal IT services market is vast, with agencies like the VA being major consumers due to the complexity of their operations and the need for robust digital infrastructure. Comparable spending benchmarks would involve looking at other large-scale IT operations and maintenance contracts across federal agencies.

Small Business Impact

While this contract was awarded under full and open competition and there is no explicit small business set-aside noted, the prime contractor, Leidos SMS Inc., may engage small businesses for subcontracting opportunities. The extent of small business participation will depend on the prime contractor's subcontracting plan and the specific services required.

Oversight & Accountability

Oversight is typically managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases and public reporting, though specific operational details may be sensitive.

Related Government Programs

VA IT Modernization Initiatives
Federal Civilian IT Services
IT Infrastructure Support Contracts
Cloud Computing Services for Government

Risk Flags

Cybersecurity Risk
System Downtime Potential
Data Integrity Concerns
Contractor Performance Variability
Technology Obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $372.2 million to LEIDOS SMS INC. IGF::OT::IGF INFRASTRUCTURE OPERATIONS SERVICES SUPPORT

Who is the contractor on this award?

The obligated recipient is LEIDOS SMS INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $372.2 million.

What is the period of performance?

Start: 2018-03-07. End: 2021-12-31.

What is the track record of Leidos SMS Inc. in managing large-scale federal IT infrastructure contracts?

Leidos SMS Inc., as part of Leidos, has a substantial track record in managing complex IT infrastructure and services for various federal agencies, including the Department of Defense and civilian departments. Their experience often involves large-scale system integration, operations, and maintenance. For the VA specifically, their performance on this contract would be assessed against defined performance metrics and service level agreements. Historical data from contract performance reports and past performance evaluations would provide a detailed view of their reliability, technical expertise, and ability to meet demanding requirements in areas such as network management, cybersecurity, and end-user support.

How does the awarded amount compare to similar IT infrastructure support contracts within the federal government?

The $372 million award for IT infrastructure operations and support over its duration is substantial, reflecting the critical nature and scale of services required by the Department of Veterans Affairs. To benchmark this value, one would compare it to similar contracts awarded by other large federal agencies (e.g., DoD, HHS, GSA) for comparable services like network operations, data center management, and end-user support. Factors such as contract length, scope of services, number of users supported, and geographic coverage are crucial for a fair comparison. Without specific comparable contract data readily available, it's challenging to definitively state if this represents a high or low value, but the full and open competition suggests an effort to achieve competitive pricing.

What are the primary risk indicators associated with this type of IT infrastructure support contract?

Primary risk indicators for this IT infrastructure support contract include cybersecurity vulnerabilities, potential for system downtime or performance degradation, data breaches, and contractor performance issues. Ensuring the security and integrity of sensitive veteran data is paramount. Risks also extend to the potential for cost overruns if not managed effectively, vendor lock-in, and challenges in adapting to rapidly evolving technology. The VA's reliance on these systems for critical healthcare and benefits delivery means that any disruption could have significant consequences for veterans and agency operations. Robust oversight and performance management are key to mitigating these risks.

How effective has the VA been in leveraging IT contracts to improve service delivery to veterans?

The VA has historically leveraged IT contracts to modernize its systems and improve service delivery, though this has been a complex and often challenging endeavor. Contracts like this one for IT infrastructure are foundational, aiming to ensure the reliability and security of the systems that underpin all VA operations, from electronic health records to benefits processing. Success is often measured by improvements in system uptime, data accessibility, user satisfaction (both for staff and veterans), and the ability to integrate new technologies. While significant progress has been made, the VA has also faced challenges with large IT projects, including cost overruns and implementation delays, highlighting the ongoing need for effective contract management and strategic IT planning.

What are the historical spending patterns for IT infrastructure support at the VA?

Historical spending patterns for IT infrastructure support at the VA have generally shown a consistent and significant investment, reflecting the agency's vast operational needs and large user base. Over the years, the VA has allocated substantial portions of its budget to IT, including infrastructure, software development, and cybersecurity. Spending has likely evolved with technological advancements, shifting from traditional on-premises data centers towards cloud solutions and more distributed network architectures. Analyzing past contract awards for similar services would reveal trends in contract values, durations, and the types of services procured, indicating a sustained commitment to maintaining and upgrading its IT backbone.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Leidos Holdings, Inc.

Address: 149 NORTHERN CONCOURSE STE 1, SYRACUSE, NY, 13212

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

Financial Breakdown

Contract Ceiling: $372,238,646

Exercised Options: $372,238,646

Current Obligation: $372,238,646

Subaward Activity

Number of Subawards: 161

Total Subaward Amount: $40,657,495

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1004

IDV Type: IDC

Timeline