Leidos awarded $11.9M for Help Desk Operations by GSA, spanning 5 years

Contract Overview

Contract Amount: $11,941,591 ($11.9M)

Contractor: Leidos Federal Healthcare, Inc.

Awarding Agency: General Services Administration

Start Date: 2005-05-31

End Date: 2010-01-31

Contract Duration: 1,706 days

Daily Burn Rate: $7.0K/day

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: HELP DESK OPERATIONS

Place of Performance

Location: NATICK, MIDDLESEX County, MASSACHUSETTS, 01760

State: Massachusetts Government Spending

Plain-Language Summary

General Services Administration obligated $11.9 million to LEIDOS FEDERAL HEALTHCARE, INC. for work described as: HELP DESK OPERATIONS Key points: 1. Value for money appears fair given the 5-year duration and scope of services. 2. Competition dynamics were limited, with only two bidders indicating potential for higher pricing. 3. Risk indicators are moderate, with a Time and Materials contract type potentially leading to cost overruns if not managed closely. 4. Performance context suggests a need for robust oversight to ensure service delivery meets expectations. 5. Sector positioning places this contract within the IT services domain, supporting federal agency operations.

Value Assessment

Rating: fair

The contract's value of approximately $11.9 million over five years for help desk operations suggests a moderate annual spend. Benchmarking against similar federal help desk contracts is challenging without more specific service level agreements and scope details. However, the Time and Materials pricing structure, while flexible, carries inherent risks of cost escalation if not tightly managed. The total award value of $11.9M is within a reasonable range for a 5-year contract of this nature, but the lack of detailed performance metrics makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed with a limited number of bidders, specifically two. A limited competition can sometimes lead to less competitive pricing as the pool of potential providers is smaller. While two bidders are better than one, it does not represent the full and open competition that typically yields the best prices for the government. The implications for price discovery are that the government may not have secured the absolute lowest possible price.

Taxpayer Impact: With only two bidders, taxpayers may have paid a premium compared to what might have been achieved in a more robustly competed environment. This highlights the importance of maximizing competition whenever feasible.

Public Impact

Federal employees across various agencies benefit from accessible and responsive IT support. Essential IT help desk services are delivered, ensuring the smooth functioning of government operations. The geographic impact is likely nationwide, supporting federal employees regardless of their physical location. Workforce implications include the employment of IT support specialists by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type poses a risk of cost overruns if not diligently monitored.
Limited competition may have resulted in a higher price than a fully competed contract.
Lack of detailed performance metrics in the provided data makes it difficult to assess service quality.

Positive Signals

The contract has a long-term duration (5 years), suggesting a stable and ongoing need for these services.
The contractor, Leidos, is a well-established entity in the federal contracting space.
The contract supports essential IT functions critical to government operations.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT support and help desk operations. The federal IT services market is substantial, with agencies consistently outsourcing various IT functions to manage costs and leverage specialized expertise. This contract represents a typical expenditure for maintaining essential IT infrastructure and user support within the federal government. Comparable spending benchmarks would involve analyzing other federal help desk contracts, which often range from a few million to tens of millions of dollars annually depending on scope and user base.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Therefore, it is unlikely that small businesses were specifically targeted for this award. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, Leidos, but are not explicitly mandated by the contract terms as presented. The impact on the small business ecosystem is likely minimal unless Leidos actively engages small businesses for subcontracting roles.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) contracting officers and program managers. Accountability measures would be tied to the performance work statement and service level agreements, which are not detailed in the provided data. Transparency is generally facilitated through contract award databases like FPDS, where this information is published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Support Services
IT Help Desk Services
GSA MAS Contracts
Leidos Federal Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition may impact price competitiveness.
Lack of detailed performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $11.9 million to LEIDOS FEDERAL HEALTHCARE, INC.. HELP DESK OPERATIONS

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 $11.9 million.

What is the period of performance?

Start: 2005-05-31. End: 2010-01-31.

What specific IT services are included under 'Help Desk Operations' for this contract?

The provided data abbreviates the service as 'HELP DESK OPERATIONS' (d: 'HELP DESK OPERATIONS'). Typically, federal help desk operations encompass a range of services including receiving and logging IT support requests via phone, email, or web portal; troubleshooting common hardware and software issues; providing technical guidance and solutions; escalating complex problems to specialized IT teams; managing user accounts and access; and maintaining IT asset inventories. Without the full contract details or performance work statement, the precise scope of services, service level agreements (SLAs), and response/resolution times are not specified. This lack of detail makes it difficult to fully assess the value and effectiveness of the contract.

How does the $11.9 million award compare to other federal help desk contracts?

Comparing the $11.9 million award for 5 years (approximately $2.38 million annually) requires context regarding the number of users supported, the complexity of the IT environment, and the specific services required. GSA's Federal Acquisition Service (FAS) manages numerous IT service contracts. Larger agencies with extensive user bases might award contracts in the tens or even hundreds of millions for comprehensive IT support. Smaller, more focused contracts can be in the low millions. Given Leidos's size and the duration, this award appears to be for a significant but not exceptionally large-scale help desk operation. A more precise comparison would necessitate analyzing contracts with similar scope, user counts, and defined service levels.

What are the primary risks associated with a Time and Materials (T&M) contract for help desk services?

The primary risk with a Time and Materials (T&M) contract, like the one awarded to Leidos, is the potential for cost overruns. In a T&M structure, the government pays the contractor for the actual labor hours expended and the cost of materials used. If not managed stringently, contractors may bill for excessive hours or use more expensive materials than necessary, driving up the total cost beyond initial estimates. For help desk operations, this could manifest as inefficient troubleshooting, unnecessary escalations, or prolonged support times. Effective oversight, including detailed tracking of labor hours, material usage, and regular performance reviews, is crucial to mitigate these risks and ensure the government receives good value.

What is Leidos Federal Healthcare, Inc.'s track record with similar GSA contracts?

Leidos is a major federal contractor with a substantial history of performing IT and healthcare-related services for various government agencies, including those under GSA contracts. While 'Leidos Federal Healthcare, Inc.' suggests a specific subsidiary or focus, the parent company, Leidos, has extensive experience in areas like IT support, systems integration, and professional services. Their track record generally includes managing large-scale, complex contracts. Specific performance data for this particular help desk contract would be found in past performance evaluations and contract administration records held by GSA. Generally, large contractors like Leidos are expected to have robust processes for contract execution and compliance.

How has federal spending on IT help desk services evolved over the past decade?

Federal spending on IT help desk services has generally remained a consistent and significant portion of overall IT budgets. Over the past decade, there has been a trend towards consolidating help desk functions, increasing the use of automation (like chatbots and self-service portals), and leveraging cloud-based solutions for IT support management. Agencies often seek efficiencies through longer-term contracts and performance-based metrics. While specific figures for 'help desk operations' as a distinct category can be hard to isolate from broader IT support spending, the overall trend indicates a sustained need, often met through large, multi-year contracts awarded to major IT service providers like Leidos, reflecting a move towards more strategic outsourcing and managed services.

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: $11,941,591

Exercised Options: $11,941,591

Current Obligation: $11,941,591

Parent Contract

Parent Award PIID: GS07T00BGD0019

IDV Type: GWAC

Timeline