Leidos Federal Healthcare contract awarded by GSA for $32.8M over 12 years
Contract Overview
Contract Amount: $32,771,032 ($32.8M)
Contractor: Leidos Federal Healthcare, Inc.
Awarding Agency: General Services Administration
Start Date: 2000-11-15
End Date: 2012-11-21
Contract Duration: 4,389 days
Daily Burn Rate: $7.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Healthcare
Place of Performance
Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
General Services Administration obligated $32.8 million to LEIDOS FEDERAL HEALTHCARE, INC. for work described as: Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Long contract duration suggests potential for price escalation and reduced flexibility. 3. Fixed Price with Economic Price Adjustment (FPEPA) contract type can shield contractor from inflation. 4. Awarded by the General Services Administration (GSA), a common contracting vehicle. 5. Contract performance period spanned over 12 years, indicating a long-term need. 6. The contract was a delivery order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Value Assessment
Rating: fair
The contract's value of approximately $32.8 million over 12 years averages to about $2.7 million per year. Without specific details on the services rendered, it is difficult to benchmark against similar contracts. The FPEPA pricing structure introduces a risk of cost overruns due to economic fluctuations, which may not represent the best value if not carefully managed. The long duration also means that the initial pricing may not reflect current market conditions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type is listed as 'COMPETITIVE DELIVERY ORDER', which implies that the underlying IDIQ contract was competed. However, the specific details of how this particular delivery order was competed are not provided. If it was a competitive delivery order under a previously competed IDIQ, it suggests some level of competition, but the number of bidders for this specific order is unknown. Limited competition could lead to higher prices.
Taxpayer Impact: The level of competition for this delivery order directly impacts taxpayer value. If competition was robust, it likely resulted in more favorable pricing. If competition was limited, taxpayers may have paid a premium.
Public Impact
The primary beneficiaries of this contract are likely federal healthcare agencies requiring IT or administrative support services. The services delivered would have supported the operational needs of these agencies over a significant period. The geographic impact is likely concentrated within the United States, supporting federal operations. Workforce implications could include employment opportunities for IT and healthcare support professionals within Leidos and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (12 years) increases risk of vendor lock-in and potential for price increases.
- FPEPA contract type can lead to higher costs for the government due to economic adjustments.
- Lack of specific details on competition for the delivery order makes it hard to assess true value for money.
- The contract was awarded to a single entity, raising concerns about the extent of initial competition.
Positive Signals
- Awarded by GSA, suggesting adherence to established procurement processes.
- The contract was a delivery order, implying it was part of a larger, potentially competed, IDIQ vehicle.
- The long duration indicates a sustained and critical need for the services provided.
Sector Analysis
This contract falls within the broader IT and healthcare services sector, a significant area of federal spending. The federal government relies heavily on contractors like Leidos for specialized services that support its vast operations. Benchmarking this contract's value is challenging without knowing the specific services, but the annual average spend of $2.7 million is moderate for a long-term federal IT/healthcare support contract.
Small Business Impact
There is no indication that this contract involved small business set-asides. The prime contractor, Leidos, is a large business. Subcontracting opportunities for small businesses may have existed, but details are not provided. The absence of set-asides means direct benefits to the small business ecosystem from this specific award are not evident.
Oversight & Accountability
As a delivery order issued by the General Services Administration (GSA), oversight would typically involve GSA's Federal Acquisition Service. Accountability measures would be embedded in the contract terms and performance metrics. Transparency is generally facilitated through federal procurement databases like FPDS, where basic award information is available. Inspector General jurisdiction would depend on the specific agency utilizing the services procured through this order.
Related Government Programs
- GSA Federal Supply Schedule Contracts
- IT Services for Federal Agencies
- Healthcare IT Support Contracts
- Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Risk Flags
- Long contract duration
- Economic Price Adjustment clause
- Lack of specific competition details for delivery order
Tags
healthcare, it-services, general-services-administration, leidos, fixed-price-economic-price-adjustment, delivery-order, competitive, long-term-contract, federal-healthcare, maryland
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $32.8 million to LEIDOS FEDERAL HEALTHCARE, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is LEIDOS FEDERAL HEALTHCARE, INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $32.8 million.
What is the period of performance?
Start: 2000-11-15. End: 2012-11-21.
What specific services did Leidos Federal Healthcare, Inc. provide under this contract?
The provided data does not specify the exact services rendered by Leidos Federal Healthcare, Inc. under this contract. However, given the contractor's name and the context of federal spending, it likely involved information technology (IT) support, healthcare IT solutions, administrative services, or a combination thereof, aimed at supporting federal healthcare initiatives or agencies. The long duration and fixed-price with economic price adjustment structure suggest a need for ongoing, potentially complex services that required long-term commitment and flexibility to adapt to economic changes.
How did the economic price adjustment (EPA) clause impact the total cost of the contract over its 12-year lifespan?
The economic price adjustment (EPA) clause in this Fixed Price with Economic Price Adjustment (FPEPA) contract allowed for modifications to the contract price based on fluctuations in economic conditions, such as inflation. Over the 12-year period, this clause likely resulted in increased costs for the government compared to a firm fixed-price contract, especially if inflation rates were high during the performance period. While EPA clauses are intended to protect contractors from unforeseen economic risks and ensure fair pricing, they can also lead to higher overall spending for the government and reduce the predictability of costs.
What was the competitive landscape for the underlying IDIQ contract under which this delivery order was issued?
The data indicates this was a 'COMPETITIVE DELIVERY ORDER', suggesting that the underlying Indefinite Delivery/Indefinite Quantity (IDIQ) contract was competed. However, the specifics of that competition, such as the number of bidders or the evaluation criteria, are not provided. Typically, IDIQ contracts are awarded after a full and open competition to multiple awardees, allowing agencies to issue task orders or delivery orders against the IDIQ. The competitiveness of the initial IDIQ award is crucial for ensuring that subsequent delivery orders, like this one, benefit from a competitive environment, although the specific competition for this order is not detailed.
Were there any performance issues or contract modifications documented for this contract?
The provided data does not contain information regarding performance issues or specific contract modifications for this award. Contract modifications are common over long-duration contracts to adjust scope, pricing (especially with EPA clauses), or timelines. Without access to the contract file or detailed procurement records, it is impossible to assess if there were any disputes, performance deficiencies, or significant changes that altered the original terms and conditions of the award.
How does the annual average spending of approximately $2.7 million compare to similar federal healthcare IT contracts?
An annual average spending of approximately $2.7 million for a federal healthcare IT contract over a 12-year period is within a moderate range. However, a precise comparison is difficult without knowing the specific scope of services, deliverables, and the complexity of the IT solutions provided. Larger, more complex enterprise-wide IT system implementations or major healthcare data management contracts could easily exceed this figure annually. Conversely, smaller, more focused support contracts might have lower annual costs. The value is highly dependent on the specific requirements met by Leidos.
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 1 CURIE COURT, ROCKVILLE, MD, 08
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $34,892,483
Exercised Options: $34,892,483
Current Obligation: $32,771,032
Parent Contract
Parent Award PIID: GS07T00BGD0019
IDV Type: GWAC
Timeline
Start Date: 2000-11-15
Current End Date: 2012-11-21
Potential End Date: 2012-11-21 00:00:00
Last Modified: 2013-01-17
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