FEMA awards $54.7M training contract to Leidos, Inc. for CDP Training Delivery Services
Contract Overview
Contract Amount: $54,672,766 ($54.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2022-03-14
End Date: 2026-04-15
Contract Duration: 1,493 days
Daily Burn Rate: $36.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: CDP TRAINING DELIVERY SERVICES
Place of Performance
Location: ANNISTON, CALHOUN County, ALABAMA, 36205
State: Alabama Government Spending
Plain-Language Summary
Department of Homeland Security obligated $54.7 million to LEIDOS, INC. for work described as: CDP TRAINING DELIVERY SERVICES Key points: 1. Contract value represents a significant investment in professional development for federal personnel. 2. Leidos, Inc. is a large, established government contractor with a broad range of service capabilities. 3. The contract's cost-plus award fee structure incentivizes performance but requires careful oversight. 4. Delivery order under an existing contract suggests a streamlined procurement process. 5. The training services are crucial for enhancing the skills and readiness of emergency management staff. 6. Geographic impact is nationwide, supporting FEMA's broad operational scope.
Value Assessment
Rating: good
The contract value of $54.7 million over its period of performance (approximately 4 years) appears reasonable for comprehensive training delivery services to a federal agency like FEMA. Benchmarking against similar large-scale training contracts for federal agencies suggests that the overall investment aligns with market rates for specialized professional development. The cost-plus award fee (CPAF) pricing structure, while common, necessitates diligent monitoring to ensure costs remain controlled and that award fees are tied to demonstrable performance improvements. Without specific per-unit cost data, a precise value-for-money assessment is challenging, but the scale of the contract implies a substantial scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 5 bids suggests a competitive environment, which generally benefits price discovery and encourages contractors to offer competitive terms. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the strength of the competition. However, full and open competition is the preferred method for ensuring fair access and potentially the best value for the government.
Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by fostering a competitive bidding environment. It ensures that the government explores a wide range of potential solutions and providers, increasing the likelihood of securing services at a reasonable cost.
Public Impact
Federal employees, particularly within FEMA and potentially other homeland security-related agencies, will benefit from enhanced training and professional development. The contract will deliver a range of professional and management development training services. The geographic impact is nationwide, supporting FEMA's distributed workforce and operational needs across the United States. Workforce implications include upskilling and professionalization of federal employees, contributing to improved agency effectiveness in emergency management and response.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee contracts require robust oversight to manage costs and ensure performance targets are met.
- The duration of the contract (over 4 years) necessitates ongoing performance monitoring to ensure sustained quality.
- Reliance on a single large contractor for critical training services could pose a risk if performance degrades or if the contractor faces significant business challenges.
Positive Signals
- Awarding to a large, experienced contractor like Leidos, Inc. suggests a focus on reliability and established expertise.
- Full and open competition indicates a thorough vetting process and potential for competitive pricing.
- The contract's focus on training delivery aligns with government efforts to improve workforce skills and agency readiness.
Sector Analysis
The Professional and Management Development Training sector (NAICS 611430) is a significant market within government contracting, supporting agencies' needs for continuous learning and skill enhancement. This contract fits within the broader IT and professional services landscape, where large system integrators and specialized training providers compete. Comparable spending benchmarks for large federal training contracts can range from tens to hundreds of millions of dollars, depending on the scope, duration, and complexity of the services required. FEMA's investment is substantial but aligns with the critical nature of its mission.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the prime contractor, Leidos, Inc., is a large business. While there is no explicit requirement for subcontracting to small businesses in the provided data, large federal contracts often include subcontracting plans. The impact on the small business ecosystem would depend on whether Leidos actively seeks small business partners for specialized training components or support services, which is not detailed here.
Oversight & Accountability
The contract utilizes a Cost Plus Award Fee (CPAF) structure, which inherently requires strong government oversight to manage costs and evaluate performance against defined criteria to determine award fees. The Department of Homeland Security, and specifically FEMA, would have established program management and contracting officers responsible for monitoring contractor performance, reviewing invoices, and ensuring compliance with contract terms. Transparency would be facilitated through contract reporting mechanisms and potentially through public contract databases, though specific oversight reports or IG investigations related to this particular contract are not detailed in the provided data.
Related Government Programs
- Department of Homeland Security Training Programs
- Federal Emergency Management Agency Operations Support
- Professional Development Services for Federal Agencies
- Government-wide Training Contracts
- Leidos, Inc. Government Services Portfolio
Risk Flags
- Cost-plus contracts require diligent oversight.
- Performance metrics must be clearly defined and monitored.
- Contractor's long-term performance history should be reviewed.
Tags
training-delivery, professional-development, homeland-security, fema, leidos-inc, cost-plus-award-fee, full-and-open-competition, delivery-order, federal-agency, nationwide, management-training, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $54.7 million to LEIDOS, INC.. CDP TRAINING DELIVERY SERVICES
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).
What is the total obligated amount?
The obligated amount is $54.7 million.
What is the period of performance?
Start: 2022-03-14. End: 2026-04-15.
What is Leidos, Inc.'s track record with similar federal training contracts?
Leidos, Inc. has a substantial track record in providing a wide array of services to the federal government, including IT, logistics, and professional services. While specific details on their training delivery contracts are not provided here, their broad experience suggests they are well-equipped to handle complex federal requirements. They have held numerous large-scale contracts across various agencies, often involving complex program management and service delivery. A deeper dive into their contract history would reveal specific past performance on training-related efforts, including client agencies, contract values, and performance ratings, which would offer a more precise understanding of their capabilities and reliability in this domain.
How does the $54.7 million contract value compare to FEMA's historical spending on training?
FEMA's historical spending on training can fluctuate significantly based on agency priorities, disaster response needs, and specific program initiatives. A $54.7 million contract over approximately four years represents a considerable, but not necessarily unprecedented, investment. To provide a precise comparison, one would need to analyze FEMA's annual budgets and contract awards for training services over the past 5-10 years. This would reveal whether this contract represents a typical investment, an increase, or a decrease in spending for such services. Factors like the scope of training (e.g., number of personnel, types of courses) and the duration of the contract are critical for contextualizing this value.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for training delivery?
The primary risks associated with a CPAF contract for training delivery revolve around cost control and performance measurement. For the government, there's a risk that costs could escalate beyond initial projections if not managed diligently, as the contractor is reimbursed for allowable costs plus a fee. The 'award' portion of the fee is contingent on meeting or exceeding performance objectives, which requires clearly defined, measurable, and achievable metrics. If these metrics are poorly defined or if performance monitoring is weak, the government might overpay for subpar services or fail to incentivize the highest levels of performance. For the contractor, the risk lies in not achieving the performance targets necessary to earn the full award fee, impacting their overall profitability.
How effective is full and open competition in ensuring value for money in large federal training contracts?
Full and open competition is generally considered the most effective method for ensuring value for money in large federal training contracts. By allowing all responsible sources to submit bids, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This broad competition drives down costs as contractors vie for the contract. Furthermore, it allows the government to compare a wider range of technical approaches and pricing structures, enabling a more informed selection of the best overall value, not just the lowest price. The process inherently promotes transparency and fairness, reducing the risk of favoritism and ensuring that taxpayer dollars are used efficiently.
What are the potential implications of this contract on the broader federal training market?
This contract, awarded to Leidos, Inc. for $54.7 million, signifies a substantial portion of the federal training market being allocated to a single large provider. This could potentially limit opportunities for smaller, specialized training firms unless they are subcontracted by Leidos. For other large contractors, it represents a competitive loss and may influence their bidding strategies on future similar opportunities. The focus on 'Professional and Management Development Training' suggests a continued government emphasis on upskilling its workforce, which could drive further investment in this sector across various agencies. The success of this contract could also set a benchmark for future training procurements in terms of scope, pricing, and performance expectations.
Industry Classification
NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 70FA2022Q00000003
Offers Received: 5
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 9737 WASHINGTONIAN BLVD STE 100, GAITHERSBURG, MD, 20878
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $85,196,410
Exercised Options: $55,447,220
Current Obligation: $54,672,766
Actual Outlays: $32,670,675
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS02Q16DCR0022
IDV Type: IDC
Timeline
Start Date: 2022-03-14
Current End Date: 2026-04-15
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2026-01-30
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