Leidos Federal Healthcare contract awarded by GSA for $50.8M over 5 years, with a fixed-price structure
Contract Overview
Contract Amount: $50,855,168 ($50.9M)
Contractor: Leidos Federal Healthcare, Inc.
Awarding Agency: General Services Administration
Start Date: 2002-10-01
End Date: 2008-03-31
Contract Duration: 2,008 days
Daily Burn Rate: $25.3K/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: WARNER ROBINS, HOUSTON County, GEORGIA, 31088
State: Georgia Government Spending
Plain-Language Summary
General Services Administration obligated $50.9 million to LEIDOS FEDERAL HEALTHCARE, INC. for work described as: Key points: 1. The contract's fixed-price with economic price adjustment (EPA) structure aims to mitigate inflation risks for both parties. 2. Competition for this delivery order was likely robust given the agency and contract type, potentially leading to favorable pricing. 3. The contract duration of 5 years suggests a need for sustained services, indicating a stable program requirement. 4. Performance context is limited without specific task orders, but the award indicates successful past performance. 5. This contract falls within the broader healthcare IT and services sector, supporting federal health initiatives.
Value Assessment
Rating: good
Benchmarking this contract's value requires more granular data on the specific services rendered. However, a $50.8 million award over five years, averaging roughly $10 million annually, is within the expected range for large-scale federal healthcare IT and support services. The fixed-price with EPA structure is a common and generally fair pricing mechanism for long-term contracts susceptible to market fluctuations. Without specific task order details or comparable contract data, a precise value-for-money assessment is challenging, but the award itself suggests a competitive process yielded an acceptable price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type is listed as 'COMPETITIVE DELIVERY ORDER,' which implies that the underlying contract vehicle was competed. However, the specific competition level for this particular delivery order is not detailed in the provided data. Typically, competitive delivery orders are issued against a pre-established indefinite-delivery/indefinite-quantity (IDIQ) contract that was awarded on a competitive basis. The number of bidders for this specific order would provide further insight into the level of competition and its potential impact on pricing.
Taxpayer Impact: A competitive award process, even for a delivery order, generally benefits taxpayers by fostering price discovery and encouraging contractors to offer competitive rates to secure the work.
Public Impact
Federal healthcare agencies benefit from the services provided, likely related to IT support, data management, or healthcare system operations. The contract supports the delivery of essential healthcare services or infrastructure within the federal government. Geographic impact is not specified but likely supports federal healthcare operations nationwide. Workforce implications may include employment opportunities for IT professionals, healthcare administrators, and support staff within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on task orders makes it difficult to assess the true value and performance.
- Economic Price Adjustment (EPA) clauses can sometimes lead to cost increases if not carefully managed.
- The long contract duration could pose risks if technology or requirements change significantly.
Positive Signals
- Awarded by the General Services Administration (GSA), a reputable contracting agency.
- The contract is a 'COMPETITIVE DELIVERY ORDER,' suggesting a competitive process was involved.
- Fixed-price contracts, even with EPA, provide a degree of cost certainty.
- The contract has a defined end date, allowing for re-evaluation and potential recompete.
Sector Analysis
This contract operates within the federal healthcare IT and services sector. This sector is characterized by significant government spending aimed at modernizing health systems, managing vast amounts of patient data, and improving healthcare delivery for beneficiaries. The market includes a wide range of companies, from large prime contractors to specialized small businesses. Comparable spending benchmarks would involve analyzing other large federal contracts for health IT solutions, electronic health records (EHR) implementation, and health data analytics.
Small Business Impact
The provided data indicates that small business participation (ss and sb fields) is false. This suggests that the contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting goals for small businesses mandated in this award. Consequently, the direct impact on the small business ecosystem for this specific contract may be limited, with opportunities likely flowing to larger prime contractors or their established supply chains.
Oversight & Accountability
Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA has established procurement regulations and oversight mechanisms to ensure compliance and accountability. The contract's fixed-price nature, even with EPA, provides a degree of cost control. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Federal Health IT Services
- GSA Schedules
- Department of Veterans Affairs (VA) Health IT
- Department of Defense (DoD) Healthcare IT
- Centers for Medicare & Medicaid Services (CMS) Contracts
Risk Flags
- Potential for cost overruns due to EPA clause if not managed.
- Lack of specific service details limits full value assessment.
- No explicit small business set-aside noted.
Tags
healthcare, it-services, general-services-administration, leidos-federal-healthcare, fixed-price-economic-price-adjustment, competitive-delivery-order, federal-health, long-term-contract, georgia, mid-tier-contract-value
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $50.9 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 $50.9 million.
What is the period of performance?
Start: 2002-10-01. End: 2008-03-31.
What specific services were provided under this contract?
The provided data does not specify the exact services rendered under this contract. However, given the contractor (Leidos Federal Healthcare, Inc.) and the awarding agency (General Services Administration) in the context of federal healthcare, it is highly probable that the services relate to health information technology (HIT) solutions, healthcare system support, data management, or administrative services for federal health programs. These could include the implementation or maintenance of electronic health records (EHR), health analytics platforms, or other IT infrastructure critical to healthcare operations within federal agencies.
How does the $50.8 million contract value compare to similar federal healthcare IT contracts?
A contract value of $50.8 million spread over five years (approximately $10.16 million per year) is a substantial award, placing it in the mid-to-large tier for federal healthcare IT contracts. Many federal healthcare IT initiatives, such as large-scale EHR deployments or enterprise-wide system modernizations, can reach hundreds of millions or even billions of dollars. However, this contract could represent a significant component of a larger program or a substantial standalone service contract for a specific agency or function. Benchmarking requires comparing it to contracts with similar scope, duration, and specific service offerings, which are not detailed here.
What are the primary risks associated with a fixed-price contract with economic price adjustment (EPA)?
The primary risks associated with a fixed-price contract with EPA are twofold. For the government, the risk is that the EPA clause allows for price increases due to inflation or other specified economic factors, potentially leading to higher overall costs than initially anticipated if market conditions escalate rapidly. For the contractor, the risk is that the EPA might not fully compensate for unforeseen cost increases in labor, materials, or other direct costs, potentially eroding profit margins if the adjustment formula is not sufficiently favorable or if costs rise beyond the capped adjustments. Effective management and clear definition of economic indices are crucial to mitigate these risks.
What does the contract duration of 5 years imply about the program's stability and requirements?
A contract duration of five years, including potential option periods (though not explicitly stated here, the end date suggests a base period of 5 years), implies a stable and ongoing requirement for the services being procured. Such durations are typically awarded for programs that are expected to continue for a significant period, often involving complex systems, long-term support, or strategic initiatives. This stability allows contractors to invest in resources and personnel, while the government benefits from continuity of service. However, it also necessitates careful planning to ensure the contract remains relevant and adaptable to evolving needs and technologies over its lifespan.
What is the significance of the contract being awarded by the General Services Administration (GSA)?
The significance of the contract being awarded by the General Services Administration (GSA) lies in GSA's role as a central procurement and management agency for the federal government. GSA often uses its established contract vehicles (like GSA Schedules) to provide efficient and cost-effective procurement solutions for other federal agencies. An award through GSA suggests that the procurement process likely adhered to established federal acquisition regulations and potentially leveraged competitive pricing negotiated by GSA. It also indicates that the services provided are likely intended to support broader federal operations or specific agency needs managed through GSA's contracting expertise.
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation ID: 4TFL57031280
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: $49,827,760
Exercised Options: $49,827,760
Current Obligation: $50,855,168
Parent Contract
Parent Award PIID: GS07T00BGD0019
IDV Type: GWAC
Timeline
Start Date: 2002-10-01
Current End Date: 2008-03-31
Potential End Date: 2008-03-31 00:00:00
Last Modified: 2012-05-03
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