Leidos awarded $63.4M contract for National Healthcare Safety Network development and support
Contract Overview
Contract Amount: $63,434,806 ($63.4M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2019-08-01
End Date: 2024-07-31
Contract Duration: 1,826 days
Daily Burn Rate: $34.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DEVELOPMENT, MAINTENANCE&SUPPORT OF THE NATIONAL HEALTHCARE SAFETY NETWORK (NHSN)
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $63.4 million to LEIDOS, INC. for work described as: DEVELOPMENT, MAINTENANCE&SUPPORT OF THE NATIONAL HEALTHCARE SAFETY NETWORK (NHSN) Key points: 1. Contract focuses on critical IT infrastructure for public health data. 2. Full and open competition suggests a competitive bidding process. 3. Firm Fixed Price contract type provides cost certainty. 4. Long duration of 1826 days indicates a significant, ongoing need. 5. Contractor Leidos, Inc. has a substantial federal contracting history. 6. Services align with CDC's mission to protect public health.
Value Assessment
Rating: good
The contract value of $63.4 million over five years for IT development and support of a national healthcare safety network appears reasonable given the scope and duration. Benchmarking against similar large-scale IT system development and maintenance contracts for federal agencies suggests that this pricing is within expected ranges. The firm-fixed-price structure helps manage cost overruns, contributing to value for money. However, a detailed cost breakdown and comparison of specific labor categories and overhead rates would be necessary for a more precise value assessment.
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 6 bidders suggests a healthy level of competition for this significant IT services contract. A competitive process generally leads to better price discovery and encourages contractors to offer competitive terms and innovative solutions to win the award.
Taxpayer Impact: Taxpayers benefit from the competitive process through potentially lower prices and higher quality services than might be achieved through less competitive methods.
Public Impact
The National Healthcare Safety Network (NHSN) is the primary surveillance system for healthcare-associated infections (HAIs) in the United States. This contract supports the development and maintenance of the IT infrastructure that underpins NHSN, enabling the collection, analysis, and dissemination of critical public health data. Benefits include improved tracking of infections, informing public health interventions, and ultimately protecting patient safety across healthcare facilities nationwide. The services delivered are essential for national public health monitoring and response capabilities. Geographic impact is nationwide, covering all US states and territories. Workforce implications include the need for specialized IT professionals in software development, cybersecurity, and data management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep given the long contract duration and evolving nature of healthcare IT.
- Reliance on a single contractor for a critical national system could pose risks if performance falters.
- Ensuring data security and privacy for sensitive healthcare information is paramount and requires continuous vigilance.
Positive Signals
- Firm Fixed Price contract provides budget predictability.
- Full and open competition indicates a robust selection process.
- Long-term contract allows for sustained development and support of a vital public health system.
- Contractor Leidos, Inc. is a large, established federal contractor with significant IT experience.
Sector Analysis
The contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. This sector is characterized by high demand for specialized skills in software development, system integration, and IT support. The market size for federal IT services is substantial, with agencies continually investing in modernizing their systems. This contract for the NHSN represents a significant investment in public health IT infrastructure, aligning with government priorities for data-driven decision-making and disease surveillance. Comparable spending benchmarks for large federal IT development and maintenance contracts often run into tens or hundreds of millions of dollars over several years.
Small Business Impact
This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the prime contractor is Leidos, Inc., a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Leidos's subcontracting plan and the specific technical requirements of the NHSN system. Analysis of subcontracting reports would be needed to determine the actual impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract is likely managed by the Centers for Disease Control and Prevention (CDC) program office, with support from contracting officers and potentially the Department of Health and Human Services (HHS) Office of Inspector General (OIG). The firm-fixed-price contract type provides a degree of financial oversight by establishing a set cost. Transparency is facilitated through contract award databases and reporting requirements. The CDC's internal program management and quality assurance processes will be key accountability measures.
Related Government Programs
- National Electronic Disease Surveillance System (NEDSS)
- Public Health Information Network (PHIN)
- Centers for Disease Control and Prevention IT Modernization Efforts
- Healthcare Associated Infections (HAI) Prevention Programs
- Federal Health IT Initiatives
Risk Flags
- Potential for technology obsolescence over the contract term.
- Reliance on a single vendor for critical infrastructure.
- Data security and privacy risks inherent in healthcare IT.
- Need for sustained, effective government oversight due to contract length.
Tags
it, health-it, public-health, surveillance, software-development, system-maintenance, firm-fixed-price, full-and-open-competition, hhs, cdc, large-contract, national-scope
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $63.4 million to LEIDOS, INC.. DEVELOPMENT, MAINTENANCE&SUPPORT OF THE NATIONAL HEALTHCARE SAFETY NETWORK (NHSN)
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 (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $63.4 million.
What is the period of performance?
Start: 2019-08-01. End: 2024-07-31.
What is the track record of Leidos, Inc. in supporting large-scale federal health IT systems?
Leidos, Inc. has a significant track record in supporting large-scale federal IT systems, including those within the health sector. They have held numerous contracts with agencies like the Department of Defense, Department of Veterans Affairs, and HHS for a wide range of IT services, from system development and integration to cybersecurity and data analytics. Their experience often includes managing complex projects with substantial budgets and long durations, similar to the NHSN contract. Past performance evaluations and contract close-outs for their previous health IT engagements would provide specific insights into their reliability, technical capabilities, and ability to meet performance requirements. Their extensive portfolio suggests a capacity to handle the demands of the NHSN system.
How does the $63.4 million contract value compare to previous spending on the NHSN system?
To accurately compare the $63.4 million contract value to previous spending on the NHSN system, historical contract data for NHSN development, maintenance, and support would need to be analyzed. This would involve identifying all prior contracts awarded for the NHSN system, their respective values, durations, and the services provided. If previous contracts were significantly smaller or shorter in duration, this new award might represent an increase in investment, potentially due to system expansion, modernization efforts, or increased operational demands. Conversely, if previous spending was consistently at this level or higher, it might indicate a stable, ongoing investment. Without access to detailed historical procurement data specifically for NHSN, a direct comparison is difficult, but the current award suggests a substantial and sustained commitment to the system's functionality.
What are the primary risks associated with the long duration (1826 days) of this contract?
The long duration of 1826 days (approximately five years) for the NHSN contract presents several potential risks. Firstly, technology evolves rapidly; the systems and infrastructure developed or maintained under this contract could become outdated before the contract term ends, requiring significant adaptation or re-procurement. Secondly, there's a risk of vendor lock-in, where the government becomes heavily reliant on Leidos, potentially reducing leverage for future contract negotiations or transitions. Thirdly, the extended period increases the possibility of performance degradation or shifts in strategic priorities that may not align with the original contract scope. Finally, managing a contract of this length requires sustained oversight to ensure continued value, prevent scope creep, and adapt to changing public health needs and technological landscapes.
How effective is the NHSN system in achieving its public health surveillance goals, and how does this contract contribute?
The NHSN system is widely recognized as a cornerstone of public health surveillance in the U.S., particularly for tracking healthcare-associated infections (HAIs). Its effectiveness lies in its ability to collect standardized data from healthcare facilities nationwide, enabling the identification of trends, outbreaks, and areas needing intervention. This contract directly contributes to NHSN's effectiveness by ensuring the underlying IT infrastructure is robust, secure, and capable of handling the vast amounts of data collected. Continuous development and maintenance funded by this contract allow the system to adapt to new surveillance needs, incorporate advanced analytics, and improve data usability for public health professionals, thereby enhancing its role in preventing infections and improving patient safety.
What are the implications of the 'Firm Fixed Price' contract type for cost control and flexibility?
The 'Firm Fixed Price' (FFP) contract type offers significant advantages for cost control by establishing a ceiling price that the contractor must adhere to, regardless of their actual costs. This shifts the cost risk from the government to the contractor, incentivizing efficiency. For the CDC, this means greater budget predictability and protection against cost overruns. However, FFP contracts can sometimes limit flexibility. If unforeseen technical challenges arise or requirements change significantly, modifying an FFP contract can be more complex and may require formal change orders, potentially impacting timelines. While it promotes cost certainty, it requires a well-defined scope of work upfront to minimize the need for extensive modifications.
What is the significance of the 'Computer Systems Design Services' NAICS code for this contract?
The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' is highly significant as it defines the primary nature of the services being procured. This code encompasses establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. For the NHSN contract, this means the work likely involves not just routine maintenance but also the development of new functionalities, system architecture improvements, integration of different data sources, and ensuring the overall system design meets the complex needs of public health surveillance. It signals a focus on strategic IT solutions rather than just basic IT support.
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
Solicitation ID: 75D30119Q69849
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1750 PRESIDENTS ST FL 4, 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: $63,434,806
Exercised Options: $63,434,806
Current Obligation: $63,434,806
Actual Outlays: $42,283,654
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0008
IDV Type: GWAC
Timeline
Start Date: 2019-08-01
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 00:00:00
Last Modified: 2024-11-21
More Contracts from Leidos, Inc.
- Science Operation and Maintenance Support for the United States Antarctic Program — $3.1B (National Science Foundation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Department of Transportation)
- THE Facilities Development and Operations Contract(fdoc) Specifies Technical, Managerial, and Adminstrative Work Needed to Ensure the Availablitity, Integrity, and Reliability of Missionoperations Facilites Supporting National Aeronautics and Space Administration (nasa) Human Space Flight (HSF) Programs Requiring Mission Operations Support. the Objective of This Contract IS to Consolidate Efforts Across the Facilities Covered Under Fodoc in Order to Maximize Synergy for Hardware and Software Development, Modification, Sustaining. Maintenance, Reconfiguration, and Operations for the Purpose of Reducing Cost Without Compromising Facility Functionality and Performance. Nasa Will Collaborate With the Contractor on Developing Procedural and Technical Innovations That Improve Quality, Ensure Customer Satisfaction and Reduce Cost. Mission Operations Facilities Currently Support the Space Shuttle Programand the International Space Station Progra, Including International Partner and Commmercial Visiting Vehicles. Mission Operations Facilities Supporting the Cnstellation Program(cxp) ARE Continuously Under Development in Concert With CXP Formulation and Implementation. Fdoc Applies to the Facilities of These Three Programs, and ANY Other HSF Program Requiring Mission Operations Facility Support. in Addition, Future Mission Operations Facilities and Capabilities ARE Within the Technical Scope of This SOW, and Fdoc Worlk Associated With These Facilities Will BE Enabled Through Idiq — $1.3B (National Aeronautics and Space Administration)
- National Airspace System (NAS) Implementation Support Contract (nisc). Provides Engineering and Technical Support Services to FAA Organizations Responsible for NAS Transformation, Integration and Implementation in the Areas of Implementation and Integration Planning, Transition Planning, Engineering Support, Environmental Support, Automation Support and Other Engineering and Technical Disciplines AS Required. TAS::69 8107::TAS — $1.1B (Department of Transportation)
- Itssc Task Order for Systems — $1.1B (Social Security Administration)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →