HHS FDA Awards $110M for Computer Systems Design Services to Leidos, Inc
Contract Overview
Contract Amount: $110,046,115 ($110.0M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2019-09-19
End Date: 2022-03-18
Contract Duration: 911 days
Daily Burn Rate: $120.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THIS AWARD IS TO PROVIDE COMPLIANCE ACTIVITY ENHANCEMENT, IMPORTS ENHANCEMENT, OPERATIONS AND MAINTENANCE, AND PROGRAM MANAGEMENT.
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $110.0 million to LEIDOS, INC. for work described as: THE PURPOSE OF THIS AWARD IS TO PROVIDE COMPLIANCE ACTIVITY ENHANCEMENT, IMPORTS ENHANCEMENT, OPERATIONS AND MAINTENANCE, AND PROGRAM MANAGEMENT. Key points: 1. Leidos, Inc. secured a significant contract for IT services, including compliance and program management. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the award is substantial, spanning over two years, indicating ongoing needs. 4. The firm fixed-price contract type aims to control costs for the government.
Value Assessment
Rating: good
The contract value of $110M over approximately 2.5 years appears reasonable for comprehensive IT support services. Benchmarking against similar large-scale IT service contracts would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive environment is expected to drive favorable pricing and service quality.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving good value for the services rendered, as market forces were leveraged.
Public Impact
Enhances critical FDA functions like compliance and import operations. Supports essential program management and IT infrastructure maintenance. Ensures continuity of vital government IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep given the broad service categories.
- Reliance on a single vendor for critical IT functions.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract type for cost control.
- Supports essential government operations.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is crucial for government modernization and operational efficiency, with benchmarks varying widely based on service scope and complexity.
Small Business Impact
The data indicates this was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought through subcontracting opportunities.
Oversight & Accountability
The award was made through full and open competition, which generally implies a robust oversight process. However, ongoing monitoring of performance and adherence to contract terms is essential for accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Food and Drug Administration Programs
Risk Flags
- Potential for vendor lock-in.
- Scope creep risk.
- Lack of small business participation noted.
- Long contract duration requires diligent oversight.
Tags
computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $110.0 million to LEIDOS, INC.. THE PURPOSE OF THIS AWARD IS TO PROVIDE COMPLIANCE ACTIVITY ENHANCEMENT, IMPORTS ENHANCEMENT, OPERATIONS AND MAINTENANCE, AND PROGRAM MANAGEMENT.
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 (Food and Drug Administration).
What is the total obligated amount?
The obligated amount is $110.0 million.
What is the period of performance?
Start: 2019-09-19. End: 2022-03-18.
What specific metrics are used to measure the success of 'compliance activity enhancement' and 'imports enhancement' under this contract?
The contract likely outlines specific performance work statements (PWS) with measurable metrics for compliance and import activities. These could include reduced processing times, error rate reduction in compliance checks, or successful implementation of new regulatory technology. The FDA's internal quality assurance and program management teams would be responsible for tracking and reporting on these metrics.
What is the risk associated with Leidos, Inc. holding this contract for over two years, particularly concerning potential vendor lock-in or reduced innovation?
A significant risk is vendor lock-in, where the government becomes overly reliant on Leidos, potentially hindering future competition or adoption of newer technologies. To mitigate this, the FDA should actively monitor performance, encourage innovation within the contract scope, and plan for future contract transitions well in advance to ensure continued access to competitive solutions.
How does the $110M award compare to the FDA's historical spending on similar computer systems design services, and does it represent effective use of taxpayer funds?
Without historical spending data for comparable FDA IT services, a direct comparison is difficult. However, given the award was through full and open competition and uses a firm fixed-price structure, it suggests an effort to achieve cost-effectiveness. A detailed cost-benefit analysis and benchmarking against industry standards would be necessary to definitively assess the value for taxpayer funds.
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: NIHJT2010001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 1750 PRESIDENTS ST, 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: $110,046,115
Exercised Options: $110,046,115
Current Obligation: $110,046,115
Actual Outlays: $6,442,096
Subaward Activity
Number of Subawards: 68
Total Subaward Amount: $11,623,791
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200044W
IDV Type: GWAC
Timeline
Start Date: 2019-09-19
Current End Date: 2022-03-18
Potential End Date: 2022-03-18 00:00:00
Last Modified: 2022-04-02
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 →