NIH Awards $100.5M for Agile Software Development to Support Extramural Research Office
Contract Overview
Contract Amount: $100,539,333 ($100.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2024-06-29
End Date: 2026-06-28
Contract Duration: 729 days
Daily Burn Rate: $137.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: CONTRACT TO PROCURE A WIDE RANGE OF AGILE SOFTWARE DEVELOPMENT AND DESIGN SERVICES TO SUPPORT THE OFFICE OF EXTRAMURAL RESEARCH (OER) INCLUDING THE ERA ENTERPRISE GRANTS MANAGEMENT SYSTEM.
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $100.5 million to LEIDOS, INC. for work described as: CONTRACT TO PROCURE A WIDE RANGE OF AGILE SOFTWARE DEVELOPMENT AND DESIGN SERVICES TO SUPPORT THE OFFICE OF EXTRAMURAL RESEARCH (OER) INCLUDING THE ERA ENTERPRISE GRANTS MANAGEMENT SYSTEM. Key points: 1. The contract aims to enhance the ERA Enterprise Grants Management System, a critical tool for research funding. 2. Leidos, Inc. secured the award, indicating significant market presence in government IT services. 3. The Cost Plus Fixed Fee (CPFF) contract type warrants scrutiny for potential cost overruns. 4. This spending falls within the Computer Systems Design Services sector, a growing area of federal IT investment.
Value Assessment
Rating: good
The $100.5M award for agile software development appears reasonable given the scope of supporting the OER and the ERA system. Benchmarking against similar large-scale IT modernization contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method is generally favorable for achieving competitive pricing.
Taxpayer Impact: Taxpayer funds are being used to improve the efficiency and effectiveness of research grant management, potentially leading to better allocation of research dollars.
Public Impact
Improved grant management processes could accelerate research funding and scientific discovery. Enhanced system reliability and user experience for researchers and administrators. Potential for greater transparency and accountability in the grant lifecycle. Modernization of a key IT system supporting a significant portion of NIH's mission.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can incentivize contractor to increase costs.
- Lack of small business participation noted.
Positive Signals
- Full and open competition utilized.
- Supports critical research infrastructure.
Sector Analysis
This contract falls under Computer Systems Design Services, a sector experiencing significant federal investment for modernization and digital transformation. Benchmarks for similar large-scale agile development contracts are typically in the tens to hundreds of millions.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting goals. This represents a missed opportunity to support small businesses in the federal IT contracting space.
Oversight & Accountability
The award is a delivery order under a larger contract, suggesting prior oversight. However, ongoing monitoring of performance and costs under the CPFF structure will be crucial for accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business participation.
- Potential for scope creep in agile development.
- Reliance on a single vendor (Leidos, Inc.) for critical system.
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 $100.5 million to LEIDOS, INC.. CONTRACT TO PROCURE A WIDE RANGE OF AGILE SOFTWARE DEVELOPMENT AND DESIGN SERVICES TO SUPPORT THE OFFICE OF EXTRAMURAL RESEARCH (OER) INCLUDING THE ERA ENTERPRISE GRANTS MANAGEMENT SYSTEM.
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 (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $100.5 million.
What is the period of performance?
Start: 2024-06-29. End: 2026-06-28.
What is the projected return on investment for the ERA Enterprise Grants Management System modernization?
The return on investment is expected to manifest through increased operational efficiencies, reduced manual processing, faster grant award cycles, and improved data analytics capabilities for research program management. Quantifying this ROI requires detailed metrics on processing times, error reduction, and user satisfaction post-modernization.
What are the specific risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this project?
The primary risk with CPFF is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government ultimately covers allowable costs plus a fixed fee. This could lead to cost overruns if not rigorously monitored. Scope creep also poses a risk, potentially increasing costs without commensurate benefit.
How will the effectiveness of the new agile software development and design services be measured?
Effectiveness will likely be measured through key performance indicators (KPIs) such as system uptime, response times, defect rates, user adoption rates, and the successful delivery of new features aligned with OER requirements. Regular performance reviews and user feedback mechanisms will also gauge the impact on grant management processes.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $100,539,333
Exercised Options: $100,539,333
Current Obligation: $100,539,333
Actual Outlays: $54,318,570
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $118,808,338
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200044W
IDV Type: GWAC
Timeline
Start Date: 2024-06-29
Current End Date: 2026-06-28
Potential End Date: 2026-06-28 00:00:00
Last Modified: 2026-04-03
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