Leidos awarded $40M contract for logistical support of the Strategic National Stockpile
Contract Overview
Contract Amount: $40,085,793 ($40.1M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2022-12-01
End Date: 2026-05-31
Contract Duration: 1,277 days
Daily Burn Rate: $31.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: LOGISTICAL, OPERATIONAL, & ADMINISTRATIVE LABOR SUPPORT FOR DIVISION OF STRATEGIC NATIONAL STOCKPILE
Place of Performance
Location: ATLANTA, DEKALB County, GEORGIA, 30341
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $40.1 million to LEIDOS, INC. for work described as: LOGISTICAL, OPERATIONAL, & ADMINISTRATIVE LABOR SUPPORT FOR DIVISION OF STRATEGIC NATIONAL STOCKPILE Key points: 1. Contract provides essential administrative and operational labor for a critical national health asset. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 4. The duration of the contract extends over several years, indicating a long-term need for these services. 5. The services are categorized under Administrative Management and General Management Consulting, aligning with operational support needs.
Value Assessment
Rating: good
The contract value of approximately $40 million over its period of performance appears reasonable for the scope of logistical and administrative support required for the Strategic National Stockpile. Benchmarking against similar large-scale support contracts for federal agencies, this award falls within expected ranges. The Time and Materials pricing structure, while common for services where scope can evolve, necessitates diligent oversight to ensure cost-effectiveness and prevent overruns. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive nature of the award provides some assurance of fair pricing.
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 fact that it was competed broadly suggests a healthy level of market interest and potential for competitive pricing. While the number of bidders is not specified, full and open competition generally leads to better price discovery and a wider range of solutions being considered by the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and ensures the government receives the best value by considering multiple qualified offerors.
Public Impact
The primary beneficiaries are the Department of Health and Human Services and the nation, through the ensured operational readiness of the Strategic National Stockpile. Services delivered include crucial logistical, operational, and administrative labor to manage and maintain the stockpile. The geographic impact is national, as the Strategic National Stockpile supports public health emergencies across the United States. Workforce implications include the creation or maintenance of jobs for individuals performing administrative and logistical support roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely monitored.
- The broad scope of administrative and logistical support may present challenges in defining and measuring specific performance outcomes.
- Reliance on a single contractor for critical support functions could pose a risk if performance degrades or if the contractor faces financial instability.
Positive Signals
- Awarded through full and open competition, indicating a competitive process that should yield fair pricing.
- The contractor, Leidos, Inc., is a large, established company with significant experience in government contracting, suggesting a lower risk of performance failure.
- The contract supports a vital national asset, the Strategic National Stockpile, ensuring its readiness for public health crises.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is characterized by a wide range of service providers, from small specialized firms to large diversified companies. The market size for government administrative support services is substantial, with significant annual spending across various federal agencies. This particular contract supports a critical component of national health security, a niche but vital area within the broader federal services landscape.
Small Business Impact
This contract was awarded under full and open competition and does not indicate a small business set-aside. Therefore, there are no direct subcontracting implications specifically for small businesses mandated by this award. However, the prime contractor, Leidos, Inc., may engage small businesses as subcontractors to fulfill parts of the contract, depending on their internal subcontracting plans and the specific needs of the services required. The overall impact on the small business ecosystem is indirect, relying on the prime contractor's subcontracting strategy.
Oversight & Accountability
Oversight for this contract will primarily be managed by the Department of Health and Human Services, specifically the Office of Assistant Secretary for Preparedness and Response (ASPR). As a Time and Materials contract, rigorous oversight will be crucial to monitor labor hours, rates, and the necessity of all expenditures to ensure value for money. Accountability measures will likely involve performance reviews, adherence to delivery schedules, and compliance with contractual terms. Transparency is generally maintained through federal contract databases, though detailed operational performance data may be internal.
Related Government Programs
- Strategic National Stockpile Operations
- Federal Stockpile Management
- Public Health Emergency Preparedness
- Logistical Support Services
- Administrative Consulting Services
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Reliance on contractor for critical operational support functions.
- Scope creep risk in administrative and logistical services.
Tags
health-and-human-services, strategic-national-stockpile, logistics, administrative-support, consulting-services, time-and-materials, full-and-open-competition, department-of-health-and-human-services, national-security, public-health, leidos-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $40.1 million to LEIDOS, INC.. LOGISTICAL, OPERATIONAL, & ADMINISTRATIVE LABOR SUPPORT FOR DIVISION OF STRATEGIC NATIONAL STOCKPILE
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).
What is the total obligated amount?
The obligated amount is $40.1 million.
What is the period of performance?
Start: 2022-12-01. End: 2026-05-31.
What is Leidos, Inc.'s track record with similar federal contracts, particularly in logistical and administrative support for critical national assets?
Leidos, Inc. has a substantial track record in federal contracting, including extensive experience in providing complex logistical, operational, and administrative support services across various government agencies. They are a major prime contractor for the Department of Defense, Intelligence Community, and civilian agencies, often handling large-scale programs. Their portfolio includes supply chain management, IT services, and program management for critical infrastructure and national security initiatives. While specific details on past performance for the Strategic National Stockpile are not publicly detailed in this award notice, Leidos's general profile suggests a capacity to manage contracts of this magnitude and complexity. Past performance reviews and contract databases would offer more granular insights into their specific successes and challenges in similar roles.
How does the awarded amount of $40 million compare to historical spending on similar logistical and administrative support for the Strategic National Stockpile?
Analyzing historical spending for the Strategic National Stockpile's logistical and administrative support requires access to detailed historical contract data. However, a $40 million award over approximately four years (December 2022 to May 2026) suggests an average annual spend of around $10 million. This figure needs to be contextualized against the overall budget and operational scale of the Strategic National Stockpile, which can fluctuate significantly based on national health needs and preparedness levels. Comparing this to previous contracts for similar services, if available, would reveal whether this represents an increase, decrease, or stable level of investment. Factors like inflation, expanded scope, or changes in operational requirements could influence year-over-year spending.
What are the primary risks associated with a Time and Materials (T&M) contract for this type of service, and how are they mitigated?
The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or multiplier. This structure can incentivize longer task durations or less efficient work if not properly managed. For this contract supporting the Strategic National Stockpile, mitigation strategies would include robust government oversight, detailed tracking of all hours and expenses, clear task definitions, and potentially establishing cost ceilings or CLINs (Contract Line Item Numbers) with not-to-exceed (NTE) limitations. The government contracting officer and technical team must actively monitor performance and expenditures to ensure the contractor is providing value and working efficiently towards defined objectives.
What is the expected impact of this contract on the operational readiness and effectiveness of the Strategic National Stockpile?
This contract is expected to significantly enhance the operational readiness and effectiveness of the Strategic National Stockpile by providing essential human resources for its management and maintenance. The logistical, operational, and administrative labor ensures that the stockpile's vast inventory of medical supplies, pharmaceuticals, and equipment is properly stored, tracked, maintained, and ready for rapid deployment during public health emergencies. Without adequate staffing for these functions, the stockpile's ability to respond to national crises would be severely hampered. Therefore, this contract directly contributes to national security by bolstering the nation's capacity to manage and deploy critical medical assets when needed most.
Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract that indicate its success?
The provided data does not explicitly list specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, for a contract of this nature supporting the Strategic National Stockpile, typical KPIs would likely revolve around inventory accuracy, timely response to deployment orders, proper maintenance of supplies (e.g., temperature control, expiration date management), and efficient administrative processing. The success of a T&M contract is often measured by the government's satisfaction with the delivered services against the defined scope and objectives, alongside cost control. Detailed performance standards would be outlined in the contract's Performance Work Statement (PWS).
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1750 PRESIDENTS ST FL 6, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,085,793
Exercised Options: $40,085,793
Current Obligation: $40,085,793
Actual Outlays: $32,110,526
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $1,389,768
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00F022CA
IDV Type: FSS
Timeline
Start Date: 2022-12-01
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2026-02-17
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