Leidos Federal Healthcare contract for IT products awarded by GSA for over $16.5M

Contract Overview

Contract Amount: $16,500,210 ($16.5M)

Contractor: Leidos Federal Healthcare, Inc.

Awarding Agency: General Services Administration

Start Date: 2006-02-02

End Date: 2008-09-30

Contract Duration: 971 days

Daily Burn Rate: $17.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT RELATED PRODUCTS

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40121

State: Kentucky Government Spending

Plain-Language Summary

General Services Administration obligated $16.5 million to LEIDOS FEDERAL HEALTHCARE, INC. for work described as: IT RELATED PRODUCTS Key points: 1. Contract value appears reasonable given the duration and scope of IT products. 2. Competition was robust, suggesting fair market pricing was likely achieved. 3. Performance period was relatively short, potentially limiting long-term risk. 4. This contract falls within the IT sector, a common area for federal spending. 5. The firm-fixed-price structure shifts risk to the contractor. 6. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: good

The contract value of approximately $16.5 million over two years for IT products suggests a moderate annual spend. Benchmarking against similar IT product contracts from the General Services Administration (GSA) would be necessary for a precise value-for-money assessment. However, the firm-fixed-price nature of the award generally indicates a predictable cost outcome for the government, assuming the contractor can manage their own expenses effectively. The absence of extensive modifications or overruns, if applicable, would further support a 'good' rating.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle that allowed for full and open competition. The presence of four bidders (no) suggests a healthy level of competition for this specific order. This level of competition is generally favorable as it allows multiple vendors to propose solutions and pricing, driving down costs and encouraging innovation.

Taxpayer Impact: A competitive award means taxpayers likely benefited from a more favorable price than would have been achieved through a sole-source or limited competition approach. The multiple bids ensured that the government received competitive offers, maximizing the value of taxpayer dollars.

Public Impact

Federal healthcare agencies likely benefited from the IT products and services delivered. The contract supported the modernization or maintenance of IT infrastructure within healthcare sectors. The geographic impact is primarily within Kentucky (st, sn), where the contractor is located or services were delivered. The contract supported jobs within Leidos Federal Healthcare, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements were not clearly defined upfront.
Reliance on a single large contractor could limit future flexibility.
Ensuring the IT products met evolving federal healthcare standards.

Positive Signals

Firm-fixed-price contract limits cost uncertainty for the government.
Competitive award process suggests fair market value was sought.
Leidos is a large, established federal contractor with significant IT experience.

Sector Analysis

The Information Technology (IT) sector is a significant area of federal spending, encompassing hardware, software, and related services. Contracts like this one are crucial for maintaining and upgrading the technological infrastructure that supports various government functions, including healthcare. The market for federal IT services is large and competitive, with numerous large and small businesses vying for contracts. This specific award to Leidos Federal Healthcare, Inc. fits within the broader trend of agencies procuring specialized IT solutions to meet mission requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). As a large prime contract awarded to Leidos, a major federal contractor, it is possible that subcontracting opportunities for small businesses may have existed. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem is unclear. Large prime contracts often involve complex supply chains where small businesses can play a role, but this is not guaranteed.

Oversight & Accountability

Oversight for this contract would have been managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. As a delivery order under a larger contract vehicle, oversight would likely involve contract officers, program managers, and potentially contracting specialists. Transparency is generally maintained through contract databases like FPDS-NG (where this data originates). Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or closeout.

Related Government Programs

GSA IT Schedule Contracts
Federal Healthcare IT Spending
Department of Health and Human Services IT Procurement
Defense Health Agency IT Contracts

Risk Flags

Potential for outdated technology if procurement cycles were slow.
Risk of vendor lock-in if specific product ecosystems were established.
Dependency on contractor's financial stability and operational capacity.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $16.5 million to LEIDOS FEDERAL HEALTHCARE, INC.. IT RELATED PRODUCTS

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 $16.5 million.

What is the period of performance?

Start: 2006-02-02. End: 2008-09-30.

What was the specific nature of the IT products procured under this contract?

The provided data categorizes this contract under 'IT RELATED PRODUCTS' (d). However, it does not specify the exact nature of these products. They could range from hardware (servers, workstations, networking equipment) to software licenses, or even IT-related consumables. To understand the precise nature, one would need to consult the original contract award documents or the Federal Procurement Data System (FPDS) for more detailed line-item information. This level of detail is crucial for assessing the relevance and value of the procurement to the agency's mission.

How did Leidos Federal Healthcare, Inc.'s pricing compare to other bidders for this delivery order?

The data indicates there were four bidders (no) for this competitive delivery order. While the data confirms competition, it does not provide the specific pricing proposals of each bidder. To assess how Leidos's pricing compared, one would need access to the bid tabulation or source selection decision document. Generally, in a competitive environment, the award goes to the offeror providing the best value, which considers both price and non-price factors. Without comparative pricing data, it's impossible to definitively state if Leidos was the lowest priced or offered the best overall value relative to its competitors.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These metrics are typically detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). They would outline the expected performance standards for the delivery of IT products, such as delivery timelines, product quality, or support levels. The effectiveness of the contract's execution would be measured against these agreed-upon metrics, and their absence in summary data limits a full performance assessment.

Were there any contract modifications or change orders issued during the performance period?

The summary data does not explicitly list contract modifications or change orders. The duration of the contract was 971 days (dur), spanning from February 2, 2006, to September 30, 2008. While the absence of listed modifications might suggest a stable execution, it's common for contracts of this duration to undergo some level of modification to adjust for unforeseen circumstances, scope changes, or funding adjustments. A thorough review of the contract file or detailed FPDS data would be required to confirm the presence and impact of any modifications.

What is the historical spending trend for similar IT products procured by the General Services Administration?

The General Services Administration (GSA) is a major procurer of IT products and services for the federal government, often utilizing its IT Schedule contracts. Historical spending trends for IT products through GSA have generally shown consistent growth, reflecting the increasing reliance of federal agencies on technology. GSA's role as a central procurement authority means it aggregates demand, potentially leading to better pricing through economies of scale. Analyzing GSA's overall IT spending over the period this contract was active (2006-2008) and comparing it to subsequent years would reveal trends in demand, technology adoption, and average prices paid for various IT categories.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 4THL21064003

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

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: $16,500,210

Exercised Options: $16,500,210

Current Obligation: $16,500,210

Parent Contract

Parent Award PIID: GS07T00BGD0019

IDV Type: GWAC

Timeline